Watchdog in warning over steel pensions

Concerns over proposals for steelworkers' pensions have been raised by a safety net for retirement schemes.

In May, the Government launched a consultation setting out a range of possible options for the British Steel Pension Scheme (BSPS), including legislation to enable a reduction in scheme benefit levels.

Another possibility could include a bulk transfer of scheme members to a new scheme with a reduced benefit structure.

Responding to the consultation, the Pension Protection Fund (PPF) warned these options “pose significant risks for relatively limited gains”.

It also said there could be “risks of other schemes seeking similar arrangements” adding: “We therefore believe that if Government wishes to enable either of these options it should seriously consider making any such scheme ineligible for PPF protection.”