Responding to today’s (Tuesday 16 May) announcement that the terms of a Regulated Apportionment Arrangement (RAA) have been agreed in principle between Tata Steel UK and the British Steel Pension Scheme (BSPS) trustee, the National Trade Union Steel Coordinating Committee (NTUSCC) said: "This announcement is a stepping stone in the process to secure BSPS members’ benefits in a new modified scheme sponsored by Tata Steel UK.
“The Pension Protection Fund (PPF) has a vital role in protecting people against losing their pension should their employer go bust. However we should be clear that when the trade unions voted to accept Tata Steel’s turnaround plan our members did not vote to allow Tata to put the BSPS into the PPF and end their responsibilities to scheme members.
“On the contrary the agreements we have reached with Tata are based on the understanding that all members will have the opportunity to choose whether to move to a new modified scheme or remain in the BSPS and so enter the PPF. This is the commitment Tata has given to the workforce and the trade unions will hold them to the promises they have made.
“The BSPS is well funded and our experts tell us a modified scheme would provide better outcomes than the PPF for the vast majority of members, and that the resources are there to pay in-excess of PPF benefits on an ongoing sustainable basis. This new scheme must be delivered and we will be seeking further assurances to ensure that this regulated apportionment arrangement announcement leads to the choice that our members expect.”
Unite national officer Tony Brady,
GMB national officer Dave Hulse,
Community national officer Steve McCool
NTUSCC chair and general secretary of Community Roy Rickhuss.
For further information please contact Unite head of media and campaigns Alex Flynn on 020 3371 2066 or 07967 665869.
Notes to editors:
- Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.