Tata Steel UK closes pension scheme to future accruals from 31 March

Tata Steel will shut its £15bn UK pension fund at the end of March.

The Mumbai-headquartered company said that following a consultation with its UK workforce, it would close the final salary scheme to further accruals.

In a statement on tatasteeleurope.com, the company says;

‘During the consultation process the company spoke to more than 4,000 employees at more than 90 face-to-face briefings across the UK. It also received feedback through trade union representatives.

After carefully considering all the responses received, and sharing the review with the trade unions, Tata Steel UK has informed employees it will close the British Steel Pension Scheme to future accrual with effect from 31 March 2017.’

British Steel Pension Scheme

Following Tata Steel’s announcement about completion of pension consultation process and closure of defined benefit scheme to future accrual, Allan Johnston, Chairman of the Trustee Board of British Steel Pension Scheme said;

The Trustee of the British Steel Pension Scheme welcomes the conclusion of the consultation between Tata Steel and its employees over future pension provision. The closure of the Scheme is an important step in securing its future outside of the Pension Protection Fund (‘PPF’) and making available the choice of better pension benefits for the vast majority of members than would be available to them following freefall entry into the PPF.

According to an email sent out by Tata UK today:

• Employees will shortly receive a letter home notifying them of the formal closure of the BSPS to future accrual
• A follow-up letter will be sent to employees’ homes introducing the new pension provider, the new scheme and the options available to employees
• UK Roadshows hosted by the new pension provider will take place across UK sites from w/c 20 March. Details and joining instructions will be communicated locally once finalised.

Workers at Tata’s Shotton Steel have voted in favour of a union backed plan for pensions and jobs.

Tata Steel: Company needs to rebuild trust following months of uncertainty say unions