UK. What Were the Outcomes of the Work and Pensions Committee Report?
“The outcome of the report comes as no real surprise. It concluded that the process for members to decide whether to move to the new British Steel Pension Scheme (BSPS2) was hurried and the communication far too complex with not enough bespoke information. These factors contributed to many members transferring out of the scheme to a defined contribution arrangement, which was not in their best interest.
“Nearly all members would be better off moving to the BSPS2, but as formal consent from members was required to move to the new scheme, over 20,000 of the 124,000 members will now enter the Pension Protection Fund (PPF) as they did not respond to the communication that was issued to them. This outcome is extremely disappointing as the government was under pressure over a year ago to change the legislation so that members could automatically be transferred to a new arrangement where, in most circumstances, this would be beneficial to them. This is something that certainly needs to be addressed for the future…”
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