Steelworkers are set to receive their first payments today from the new British Steel Pension Scheme (BSPS), which is now in full operation for over 80,000 employees.
The trustee has confirmed that the payments will include the April 2018 pension increases that the new scheme offers.
This comes as members of the old BSPS were asked to decide whether to transfer into the Pension Protection Fund (PPF), join the new scheme, or take a lump sum payment, following a regulated apportionment arrangement agreed last September.
The new scheme offers lower pension increases than the old BSPS but offers the same or higher increases than the PPF.
In a statement today, the trustee said it will write to pensioner members confirming the pension they are entitled to, and benefit entitlement statements will be issued to deferred pensioner members in late spring.
BSPS chairman Allan Johnston said: "I am pleased to welcome members to the new scheme which has been set up to provide a secure income in retirement for steelworkers and their beneficiaries.
"The last 18 months have been a challenging time and I would like to thank my former trustee colleagues, scheme officers and advisers, and all those involved in the Time to Choose exercise.
He added it is pleasing that around 100,000 old scheme members took the time to choose the outcome that was best for them based on their personal circumstances.
"The new BSPS offers benefits that for most members of the old scheme are the same or better than the PPF and over 80,000 of those members took the opportunity to switch to the new scheme.
"I would also like extend my best wishes to those old scheme members who are moving with that scheme into the PPF."
It is understood around 36,500 members that did not choose to opt into the new scheme or take a lump sum payment have gone into the PPF.
A PPF spokesperson said:
"As long planned, the old British Steel Pension scheme will now start moving into the PPF. Members remaining in the existing scheme can be reassured that they will receive compensation at PPF levels.
"For many members this is the best outcome based on their personal circumstances - over 13,000 members made an active choice in the member consent exercise to come to the PPF."
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