Tata Steel: Pensions

(asked on 15th November 2017) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what provision was made for advice to be given to members of the Tata Steel pension scheme on their pension options after the creation of the new pensions scheme; and what the cost to the public purse of that provision was.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 20th November 2017

The Trustee of the British Steel Pension Scheme (BSPS) is providing information to members on the effect on their pension rights of either staying in the original scheme which will move in to the Pension Protection Fund (PPF) or transferring to the new scheme. This includes newsletters, a website, bespoke option packs and access to free and impartial helplines. The Trustee cannot provide financial advice but members who may want independent advice are signposted to the www.unbiased.co.uk website. They are also warned to check that the Independent Financial Advisor from whom they receive advice is authorised by the FCA to advise on defined benefit pensions by looking them up on FCA’s register. The BSPS trustee is also warning members about the risk of bad advice and scams in its communication with members.

The Department does not provide formal advice to any pension scheme members. The Department is not authorised to provide financial advice. However, the free service provided by the Pensions Advisory Service may be able to clarify or explain information that members have received from their scheme to help them better understand their options.

The Pensions Regulator has encouraged the BSPS trustee to repeat the warnings to members at the ongoing road show meetings it is holding with members to ensure they are fully informed about their options. The PPF has been invited to these roadshows to answer questions and provide information on how the PPF operates. The Secretary of State has not had any discussions with the PPF regarding the number of BSPS members requesting transfer valuations since this is a matter for the Trustee rather than the PPF or the Government.

Government is in ongoing discussion with the FCA on the issue of cold calling and wider issues concerning advice. These discussions will take account of the circumstances surrounding Tata Steel. The Financial Conduct Authority (FCA) is aware of concerns around this issue and is urgently arranging to meet the firms in Swansea that hold the permission to advise on pension transfers in order to set out their expectations of advisers. The FCA can use their supervisory tools where they suspect authorised firms of being involved in pension scams. These tools include restrictions on a firm’s permission to do certain types of business. When unauthorised firms carry on regulated pension business, the FCA has the power to investigate and take action through the criminal and civil courts.

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