Out of all the pension schemes in the UK, one that has been recently subjected to state scrutiny is the British Steel Pension Scheme. As you may or may not be aware, The Financial Services Compensation Scheme (FSCS) has already issued millions of pounds in compensation to British Steel Workers due to the scheme’s unlawful payouts. Now, before we address the issue at hand, let’s reflect on what the British Steel Pension Scheme is.
What is the British Steel Pension Scheme?
The British Steel Pension Scheme is one of the UK’s most prominent pension schemes, comprising almost 130.000 members. Being a defined contribution pension scheme, the British Steel Pension fund is dependent on a member’s salary and how many years they have worked for an employer. These regulations mean that the sponsoring employer is ultimately responsible for making sure that the scheme has enough money to fund their investors’ retirement years.
However, according to the latest British Steel news, the scheme’s current payout rules have fallen under immense criticism by the FSCS and it has been found that workers could be owed back millions.
The British Steel Pension fund news
It has been reported that the FSCS has so far reviewed 110 claims relating to this pension scheme. The good news is that 88 of these claims have been successful, and this has resulted in £3 million in compensation being paid to former British Steel members.
For those looking to get their money back, it is worth noting that the amount owed to investors is dependent on when a British steel company has been declared in default. According to financial sources, the maximum compensation for firms declared in default before 1 April 2019 is £50,000. For companies declared in default after this date, the maximum compensation is £85,000.
Caroline Rainbird, Chief Executive of the FCSC, has even asked if the British Steel Pension fund could increase its compensation cap to make up for the amount that investors have lost from the unlawful pension transfers.
How do I claim compensation for the British Steel Pension Scheme?
If you are a British Steel worker who has lost money as a result of investing in this pension scheme, you may be eligible for compensation. However, instead of reaching out to a contact from the British Steel Pension Scheme, let our experienced team at Expert Pension Claims handle your complaint for you.
Not only do we handle claims related to pension mis-selling, we also handle queries that concern mis-sold SIPPs and investments. To contact us, simply fill in our quick enquiry form or call us on 0161 968 0768.
In the meantime, stay in touch with our blog to keep up to date with financial news and tips on how to not fall for pension scams.
Expert Pension Claims is a claims management company. We do charge a fee for our services, but this is only if your claim is successful. We do not charge a cancellation fee. For more information, visit our fees page.