Changes to the British Steel Pension Scheme

Tata Steel have today announced the separation of the British Steel Pension Scheme (BSPS) from its business. The new pension scheme will receive £550 million from Tata Steel and a 33% equity stake in TSUK. Members’ accrued benefits will be protected, but future pension increases for current and retired steelworkers will be lower.

Members of the BSPS will have the option of switching to the new scheme (the new BSPS) or moving with the old BSPS into the Pension Protection Fund (PPF).

 

Responding to Tata’s announcement, Redcar MP Anna Turley said:

“I welcome that a year of uncertainty and insecurity has come to an end for British steel pension holders who have been unable to plan for their futures.

“It will be some relief that pensions will not have to go into the Pension Protection Fund as had been feared, which would have had a huge impact on steel pension holders in Teesside. However, in order to avoid that option, the new scheme is unlikely to be as good for members as the previous one.

“It is unfair that steelworkers on Teesside have now had to pay twice for their industry. Once in the loss of our steelworks in Redcar, and again with their pensions in order to ensure Tata can continue to operate and keep steel jobs in this country.

“Tata and the government must now ensure pension holders are supported with the right advice on whether to enter this new scheme or not. Everyone’s situation will be different and they must be properly advised on the best option for them. Communication to date has been poor and I urge Tata to step up and support people in making these important decisions. People cannot be left to drift in to the worse option and lose more of their financial security.”

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  • commented 2017-08-12 13:38:11 +0100
    Anna Paul is right shortly after TATA took over whilst Philippe Varin was still CEO on the back of the announcement that Teesside was surplus to their requirements they slipped in that it was their intention to close the pension scheme to new entrants. The TUs rapidly picked up on this and took them to task and they backed up on it. Its taken them several years to get what they wanted but they have it now. No matter what reason they use no one will ever convince me that is simply a matter of them avoiding their obligations to the scheme. After reaping devastation on the Steel Industry and putting thousands out of work they are now taking away the rights of all current and future pensioners to a comfortable retirement as was promised them. I have no doubt that my sentiments are shared by many of your constituents who are in the same situation as myself.
  • commented 2017-08-12 12:55:47 +0100
    There is no "relief " here I’m afraid… I was forced into taking my pension at 54 after the closure of SSI…I did it because of the financial advice I was given about it being a "gold-plated pension " which would be there for LIFE.

    I now find myself being forced to accept what is in effect a second-rate pension .

    TATA have basically walked away from their obligations to the scheme and how they have been allowed to do this is beyond me.

    This whole shambles should be challenged in court. Disgusting.
  • commented 2017-08-11 16:50:23 +0100
    It is nothing short of criminal what TATA have done with the BSPS whilst they say they have severed their links to the scheme to secure future jobs in reality they have done so to remove their obligations to the scheme which so many of us depend on for our futures