Have you transferred out of the British Steel Pension Scheme (BSPS)?

Tata Steel UK (TSUK) has separated from the British Steel pension scheme in favour of creating a new defined benefit fund. As part of this process, members of the pension scheme had to decide if they wanted to be transferred over to the new scheme or remain in the current benefit plan instead. This would later be moved over to the pension protection fund (PPF).

It is believed that as many as 7,000 members made a request for further information relating to the transfer process, with over 700 of these requests valued at more than £200 million.

Members of the British Steel pension scheme saw financial advisors for assistance prior to the transfer of their pensions. They were charged a fee for both the transfer itself and for the ongoing advice that they received. The initial fee was around about 2% of the overall transfer value and then 1% for the ongoing advice. The average value of the funds being transferred was estimated to be £350,000.

Many members of the British Steel pension scheme were unable to state what the basis for the recommendation to transfer their pension was. It turned out the financial advisors were making the recommendation to receive their fees.

It has been estimated that only around 15% of members would have benefitted from transferring out of their defined benefit pension.

If you have transferred, then it is worth having the transaction reviewed. This is especially true if you did not fully understand what your options were and the impact that transferring would have on your plans for retirement.

Call us today to talk through what options are available to you.

Call us now for a phone or video consultation with one of our legal experts on 0800 041 8358 to find out if you are entitled to compensation, you may even be entitled to additional compensation if you have successfully claimed in the past.

News & Updates about British Steel Pension Scheme