Lesley Titcomb, Chief Executive of The Pensions Regulator (TPR), said:
“Good progress is being made in our discussions with Tata Steel UK (TSUK) and the trustees about the future of the British Steel Pension Scheme (BSPS). The key commercial terms of a regulated apportionment arrangement (RAA) have been agreed in principle between the company and the BSPS trustee. These appear to be in line with our published principles.
“However, there are still important details to be finalised before we are in a position to approve the RAA and we are considering these carefully in light of their impact upon the 130,000 pension scheme members and PPF levy payers.
“Pension restructurings which involve an RAA are rare, and we will only approve an RAA where stringent tests are met, so that they are not abused by employers seeking to inappropriately offload their pension liabilities.
“We also continue to work with TSUK and the trustee in respect of the proposal to offer members an option to transfer to a new scheme sponsored by TSUK, which may occur should the approval to the RAA be granted, or stay in the BSPS and receive PPF compensation. The successor scheme would be subject to qualifying conditions.”