Stuart Price, Partner and actuary, comments on the recent announcement concerning the Tata Steel pension…
Pensions expert Stuart Price, Partner and Actuary at Quantum Advisory, said: “The deal that has been secured is as we expected and, given the circumstances, in my opinion is best deal for all those involved. The current Tata Steel workforce will keep their jobs with significant investment from Tata in Port Talbot facilities, and the 130,000 members of British Steel Pension Scheme (pensioners and non-pensioners) will get the option to transfer to a new scheme that will have lower increases in the future, but better than the alternative of relying on the safety net of the Pension Protection Fund (PPF).
“The new scheme will have an additional contribution from Tata of £550m plus a third stake in Tata Steel (UK) plus the continued backing of Tata Steel, the latter of which is unusual in the current circumstances but provides extra security for the members.”
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