We have been approached by a number of people asking for advice on how best to proceed with their British Steel Pension Scheme.
What are your options if you are one of the 130,000 members of the British Steel Pension fund? Members have until 11 December 2017 to complete their option forms. The British Steel Pension Scheme members are being asked to choose from two options.
Option One: Pension Protection Fund
Option one is to stay with the current British Steel Scheme, which will move into the Pension Protection Fund (PPF). This is a scheme that provides compensation to members of eligible pension schemes if their pension fund becomes insolvent.
Option Two: Tata Steel
Option Two is to stay in the existing Pension fund which is now sponsored by Tata Steel UK. However, it is expected to have lower future annual increases for pensioners and deferred members than the British Steel Pension Fund. Although there won’t be any reductions to lump sums already accrued.
Option Three: Independent Advice
Alternatively, if you are more than a year away from normal retirement age (65), you have the option to transfer out of the current scheme to a different pension arrangement. If you transfer out of the scheme, you need to make sure that your funds are enough to cover your retirement plans. You will need advice on this process from an Independent Financial Adviser (IFA) with the necessary qualifications.
Get a transfer Value Analysis of your British Steel Pension Scheme
FixMyPension.com can provide you with the correct transfer value analysis, calculate the critical yield and hurdle rates and advice you on the best course of action for your particular unique circumstances.