A PPF spokesperson commented: “We can confirm that the key commercial terms of a Regulated Apportionment Arrangement (RAA) have been agreed in respect of the British Steel Pension Scheme and anticipate discussions concluding in the near future. This would meet our published principles, including that an insolvency event of the scheme’s sponsoring employer, Tata Steel UK, would otherwise be inevitable. Any RAA is subject to a 28 day period following an agreement leading to Pensions Regulator approval and PPF non-objection.
“Following the RAA, it is anticipated that if risk-related qualifying conditions relating to funding and size can be satisfied, a new pension scheme sponsored by TSUK will be set up. Members would then be given the opportunity to move to this new scheme prior to the existing scheme being assessed for entry to the PPF. Members of the scheme can be reassured that we are there to protect them throughout this process and they will be able to receive at least PPF levels of compensation, should they remain in the scheme and BSPS enter the PPF assessment period.”
Notes to editors