DEFINED BENEFIT
Tata Steel U.K. to freeze British Steel Pension Scheme at end of March
Paulina Pielichata
Tata Steel U.K. will freeze the £13.3 billion ($16.3 billion) British Steel Pension Scheme at the end of the month, the sponsoring employer said in a statement Tuesday.
"From April 1, British Steel employees will save through a new defined contribution plan," according to the statement from the steel producer,
This plan would offer maximum employer contributions of 10% based on a 6% employee contribution.
Tata Steel's spokesman said that the defined benefit plan had 8,500 active members and they will be added to the DC section of BSPS. He was unable to confirm by press time if a new pension provider will be contracted for the new plan.
Legal and General currently manages the assets of the current DC section. British Steel union members voted in favor of the proposal by the sponsoring employer to freeze the defined benefit plan last month after a consultation process with Tata Steel.
"The company believes that finding a structural solution to address the risks from the pension scheme to the viability of the business is a crucial part of its ongoing UK transformation plan," Tata Steel said in the statement.
British Steel slashes pension deficit by more than 80% since March 31
Tata Steel U.K. explores freezing British Steel pension fund
British Steel union members approve proposal to freeze pension plan
John Menzies freezes pension fund, separates distribution unit for potential sa…
British Steel Pension Scheme, Tata Steel U.K. agree to pension plan severance
86% of British Steel Pension Scheme participants vote to move to new pension pl…