Old BSPS to buy out in 2022
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The Old British Steel Pension Scheme has exited its PPF assessment period and is expected to complete a buyout in late summer 2022, instead of 2021. The FCA said it is monitoring requests to transfer from the scheme.
The fund had planned to buy out with Pension Insurance Corporation by the end of this year, but this has been delayed because of unspecified new requirements on funds, a letter by the trustees said, and it is now expected in late summer next year.
The Old BSPS exited PPF assessment on 9 November after it was found that there is enough money in the scheme for PIC to provide guaranteed pensions at or above PPF levels.
The fund had planned to buy out with Pension Insurance Corporation by the end of this year, but this has been delayed because of unspecified new requirements on funds, a letter by the trustees said, and it is now expected in late summer next year.
The Old BSPS exited PPF assessment on 9 November after it was found that there is enough money in the scheme for PIC to provide guaranteed pensions at or above PPF levels.
Regulators to help monitor transfer requests
The Pensions Regulator, Financial Conduct Authority and MoneyHelper said the FCA is working with the trustees to monitor requests to transfer out and the firms who are advising members on their options.
"All advisers should be clear on the FCA’s expectations when offering advice to members of the scheme. Where the FCA sees unsuitable advice, or bad practice, it will take action," they said.
They added that transferring out of a DB pension scheme is unlikely to be in the best interests of most consumers and that scheme members thinking of transferring should contact MoneyHelper on 0800 011 3797 before taking any action.
The BSPS scheme was at the centre of a misselling scandal when it emerged that about 7,700 steelworkers transferred a total of about £2.8bn out of the final salary scheme when it was restructured in 2017, in many cases receiving unsuitable advice.
The BSPS scheme was at the centre of a misselling scandal when it emerged that about 7,700 steelworkers transferred a total of about £2.8bn out of the final salary scheme when it was restructured in 2017, in many cases receiving unsuitable advice.
The National Audit Office has said that in the spring, it will launch an investigation into the FCA's regulation of financial advisers in the BSPS case.
