A PPF spokesperson, commenting on the signing of the Regulated Apportionment Arrangement in respect of the British Steel Pension Scheme, said:
“Members of the British Steel Pension scheme will have seen a lot of speculation about the future of their pensions, so we want to reassure them the PPF is there to protect them throughout this process. The trustees will be providing them with lots of valuable information about their future options. We’d encourage members to consider the details and their position carefully and decide whether the new scheme or the PPF is the better option for them.” Notes to Editors
Full details of how a Regulated Apportionment Arrangement works can be found at http://www.pensionprotectionfund.org.uk/DocumentLibrary/Documents/Media_Factsheet_Restructuring_Insolvency_March_2017.pdf
The RAA for British Steel Pension Scheme (BSPS), meets the PPF’s published principles, including that an insolvency event of the scheme’s sponsoring employers, including Tata Steel UK, would otherwise be inevitable. The PPF has informed the Pensions Regulator and other parties of its non-objection but the RAA is still subject to a further 28 day period following this agreement before becoming final.
Once this period concludes there will be a number of next steps. Subject to risk-related qualifying conditions, including funding and size, being satisfied a new pension scheme sponsored by TSUK will be put into place. Members will be given the opportunity to move to this new scheme, should it be set up, prior to the existing scheme being assessed for entry to the PPF. BSPS will be writing to members to explain their options and provide information on whether they might be better off to join the new scheme or remain in the existing scheme, eventually joining the PPF, in the coming months.