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UK government likely to rule out plan to protect Tata Steel pensioners with legal reforms- The 18th China(Guangzhou ) Int’l tube & pipe Processing Equipment Exhibition
9/14/2016 管材展-鋼管展-steel tube expo-tube &pipe expo |
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City AM reported that the UK government is inching away from Tata Steel''s preferred plans for dealing with its GBP 15 billion pension scheme. The Department for Work and Pensions closed a consultation into the future of the British Steel Pensions Scheme in late June, and both Tata and trustees have been pushing for the scheme to be hived off. The scheme could then be indexed to the slower rising consumer price index, rather than the retail price index.
However, the plan would require parliamentary action in order to change legislation that prevents trustees from changing the annual rise in pensions income.
Finding a solution to the scheme''s growing deficit is regarded to be critical to a potential tie-up with German steelmaker Thyssenkrupp.
But now, Westminster sources suggest officials are distancing themselves from the plan, which would require cross-party support to reform section 67 of the 1995 Pensions Act. They said “The government have been moving away from this option. Nothing has been formally ruled out yet, but it would not be a surprise at this point for them to officially say this is off the table.”
A DWP spokeswoman said described the plan as one option being investigated by government, adding: “We will come back and report on our findings in due course.”
A spokesman for British Steel Pension Scheme trustees declined to comment, but only yesterday the trustee board was still pushing for the plan to dis apply the relevant section of the 1995 legislation.
Tata is understood to have responded by preparing further alternatives as it seeks to complete the ThyssenKrupp deal.
- The 18th China(Guangzhou ) Int’l tube
& pipe Processing Equipment Exhibition
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