Tata Steel have today announced that it has signed the documentation for a Regulated Apportionment Arrangement (RAA) with the Trustee of the British Steel Pension Scheme (BSPS). This will separate the BSPS from Tata Steel and allow for the creating of a new pension scheme, with members’ accrued benefits protected, but with smaller annual increases in pensions. Tata Steel will stand behind this new scheme. 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).
In response to the announcement, the steel trade unions – Community, Unite and GMB – have issued the following statement:
“We welcome the RAA announcement which includes a commitment that Tata will stand behind a new scheme with reduced annual increases. For over a year our members have feared for their security in retirement, and this announcement helps to bring that uncertainty to an end.
“We fought to ensure that our members can choose whether they want to transfer to a new modified scheme, underpinned by Tata, or to remain in the BSPS and therefore receive PPF compensation. Now that this choice is being delivered, the company and the trustees must step up to provide the necessary information and guidance to enable every member to make an informed decision in their best interests.
“Our members have been extremely disappointed at the unacceptable lack of communication in recent months, and this has to change immediately. The company and the trustees must remember they are dealing with people’s long term future, their life savings, and their family’s financial security; it is vital members are given all the support that they need.”