More than 130,000 persons in the British Steel Pension Scheme, some of them in Yorkshire and Lincolnshire, are urged to touch upon not able to their pension.
Scheme trustees say proposals which will be better and fairer on their behalf compared to Pension Protection Fund are available, and get been detailed in letters currently coming to homes nationwide.
Based about the information on the market today following Tata Steel’s announcement regarding UK portfolio restructuring, it looks increasingly likely the fact that British Steel Pension Scheme could be essential to get into the Pension Protection Fund.
Although the Pension Protection Fund provides a valuable safety net for pension schemes generally, the trustees, entry would significantly reduce future pension increases for many people in the British Steel Pension Scheme and, for 58,000 people younger than 65, cause cuts in pensions that is at least 10%.
Allan Johnston, Chairman from the Board of Trustees on the British Steel Pension Scheme, said: “I have written to scheme members beginning why the Trustee believes marketing and advertising and fairer make use of the scheme’s assets to present modified benefits within the scheme rather than to hand the assets up to the Pension Protection Fund.
“The modified benefits would be more generous with the vast majority of members than Pension Protection Fund compensation.
“Although it is correct that the progres being consulted on by Government would see future pension increases being reduced, they could be no cheaper than those available from the Pension Protection Fund, and in many cases they could be higher. Also, members younger than 65 couldn’t survive controlled by a discount of at least 10%, which will apply if ever the scheme entered the Pension Protection Fund.
“Not everyone answering the public consultation will necessarily accomplish that while using the needs of the scheme membership under consideration. It’s truly essential that scheme members have their voices heard.”
higher. Also, members younger than 65 wouldn’t be controlled by a discount with a minimum of 10%, which would apply should the scheme entered the Pension Protection Fund.
“Not everyone responding to the public consultation will necessarily do so while using needs within the scheme membership at heart. Its imperative that scheme members have their own voices heard.”
