Steel pensions could be cut unless Tata is saved, says report

The future of Hartlepools Tata plant was thrown into doubt earlier this year.
The future of Hartlepools Tata plant was thrown into doubt earlier this year.
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Workers in the British Steel Pension Fund would see their benefits cut by at least 10% if Tata Steel’s business is not saved, according to a report.

The trustees of the BSPS also warned that future pension increases would be reduced if the scheme goes into the Pension Protection Fund (PPF).

The trustee wants to find a solution that avoids BSPS going into the Pension Protection Fund.

Statement

Tata, which has a pipe mill in Hartlepool, is selling its loss-making UK business and is considering a number of bids.

In response to a Government consultation, the trustees said 58,000 members under the age of 65 would be affected if the BSPS goes into the PPF.

A statement said: “The PPF is an important safety net for pension schemes.

“But BSPS is a very large, well-funded scheme that is able to provide better benefits than PPF compensation on a self-sufficiency basis.

“The trustee wants to find a solution that avoids BSPS going into the Pension Protection Fund.”

The trustees put forward proposals to “modify” future pension increases which would be at least as good as increases under PPF compensation, and better for most.

The trustees made it clear it would be better if the BSPS stayed out of the PPF.