TATA STEEL signed an agreement yesterday that will allow the creation of a new pension scheme to protect members’ accrued benefits — albeit with smaller annual increases in pensions.
It will separate the trustee of the British Steel Pension Scheme (BSPS) from Tata Steel. BSPS members will have the option of switching to the new scheme or moving into the Pension Protection Fund (PPF).
It puts an end to over a year of uncertainty faced by thousands of steelworkers. Steel trade unions Unite, GMB and Community welcomed the news.
Their joint statement said: “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.”
Labour’s shadow business secretary Rebecca Long-Bailey said it was now “vital” that Tata Steel follows through on its commitment to invest in British steel industry and protect jobs.