Tata Steel UK gave details on Friday of a new scheme to replace the British steel pension scheme (BSPS). Finalising the pension arrangements is expected to clear the way for Tata to merge its European steel business with the German firm ThyssenKrupp. When the RAA takes effect the BSPS will be separated from Tata Steel UK and a number of affiliated companies. Workers will now have a choice of joining the new scheme or come under the Pension Protection Fund (PPF), a lifeboat for when pension funds become insolvent. “The RAA is one important milestone in Tata Steel UK’s journey towards a sustainable and enduring future, with pension obligations, whose risk profile would be consistent with the underlying business.”

Source: The Guardian August 11, 2017 08:48 UTC