Tata Steel BSE -0.36 % UK today said it will close the British Steel Pension Scheme to future accrual from March 31 and employees will get a new contributory scheme for their retirement savings thereafter.
Tata Steel BSE -0.36 % UK today said it will close the British Steel Pension Scheme to future accrual from March 31 and employees will get a new contributory scheme for their retirement savings thereafter.
The Tata Steel arm said that it has completed the consultation process with employees to close the British Steel Pension Scheme to future accrual.
“From 1 April 2017, employees will save for their retirement through a new and competitive defined contribution pension scheme,” Tata Steel said in a filing to BSE.
“After carefully considering all the responses received and sharing the review with the trade unions, Tata Steel UK has informed employees it will close the British Steel Pension Scheme to future accrual with effect from 31 March 2017,” Tata Steel said.
Tata Steel UK continues to be deeply engaged with the pension scheme trustee, the trade unions and relevant regulatory and government bodies to identify the best prospects for the future sustainability of its UK operations and a fair and practical outcome for the members of the Birtish Steel Pension Scheme, it said.
The company believes that finding a structural solution to address the risks from the pension scheme to the viability of the business is a crucial part of its ongoing UK transformation plan, it said.
Source – PTI
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