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Community union considers strict action against transfer of British Steel Pension Scheme

Steel News - Published on Thu, 07 Dec 2017

Image Source: SteelGuru
BBC reported that a steel union has said it could take legal action if there is evidence its members have been mis-sold pensions by independent financial advisors. One Tata worker told BBC Wales he has lost almost GBP 200,000 by transferring out of the British Steel Pension Scheme after seeking advice of a local firm. Mr Richard Bevan has been working in the industry for almost 40 years, most recently at Tata's Trostre plant. The financial firms he used said they acted properly throughout.

Mr Bevan said he turned to a local company to discuss what to do with his pension savings once it became clear that Tata's British Steel Pension Scheme would close.

He said he was advised to leave the scheme even after he had been written to by the BSPS warning him that a revaluation was under way that could mean he had much more in his savings pot than previously thought.

He said that "The pension's got to last me the rest of my life.”

There are around 130,000 current and former workers in the BSPS in the UK.

As it ends, they have the choice to transfer to a new scheme, which is less generous but still better for most people than a second option, the Pension Protection Fund.

But it is a third option, transferring out of the scheme completely, that is causing most concern.

Experts have warned of a "feeding frenzy" by some financial advisers.

With some facing an uncertain Christmas over this major financial decision, unions are urging people to be careful and say they will step in if evidence emerges of wrongdoing.

Community union national officer Steve McCool said that "We'd always need to examine, is there any kind of legal action that could be pursued on behalf of members?. Unions will always in the first instance look to see what legal leverage that they would have in order to pursue the interest of their members if it's been proven there's been large scale mis-selling here.”

"But time will only tell on that. We can't pre-judge it. Yes, we're very concerned. There's a lot of vulnerable people out there making decisions on amounts of money they've never experienced before in their lives."

Source :

Posted By : Rabi Wangkhem on Thu, 07 Dec 2017
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