On the go: The trustees of the Old British Steel Pension Scheme are considering a buyout for its 31,000 members, due to a better-than-expected funding position achieve while in the assessment period at the Pension Protection Fund.
According to Sky News, the trustees of the scheme have informed its members that they are examining a deal with an insurer, which would allow individuals to receive full benefits.
While the majority of the British Steel Pension Scheme’s members opted to transfer to a new scheme created in 2018, the remainder stayed at the old scheme, which entered an assessment period at that time.
A spokesperson for Open Trustees, which acts as the old scheme’s trustee, told Sky News: “If it’s possible to secure OBSPS members’ benefits with an insurer by way of a buyout contract, members would be paid directly by the insurer at levels that would be the same or better than the PPF if members retire at normal retirement age.
“It’s too early to say whether a buyout is going to happen. However, we’ve recently approached a number of different insurers to help determine the feasibility of a buyout for OBSPS.”
A spokesperson for the PPF said: The OBSPS better-than-expected funding position has opened up the possibility of it securing member benefits outside the PPF.
“At this stage, it’s too soon to know whether the scheme will be able to buy out or instead transfer to the PPF. In the meantime, OBSPS members can be reassured that they remain protected by the PPF.”
