At the end of 2017 when the British Steel Pension Scheme (BSPS) was set to close, British steel workers had to decide which scheme their pensions would be moved to. Workers were given three options, transferring to the Pension Protection Fund (PPF), a government-operated pension lifeboat, transferring to the new BSPS 2 scheme, or transferring into a personal pension.
Unfortunately thousands of steel workers relied on advice from financial advisors and believed that transferring into a personal pension was best for them. However transferring out of a defined benefit pension and losing the associated benefits, is rarely a good idea and not in your best interests.
The FSCS have already paid £21.5 million to British Steel Pension Scheme members as the lifeboat fund and FCA call on more steelworkers to claims against IFA's.
The FSCS found that the returns needed by the former BSPS members’ new pensions were unrealistic to match the benefits offered by the BSPS2 or the PPF and the customers would have been better off if they had not transferred to a private plan.
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If you transferred your British Steel pension into a private plan, you could be entitled to compensation. The following companies were involved in British Steel pension transfer and have already been declared in default by the FSCS or are in liquidation. Anyone that has dealt with these firms can now make a claim for compensation from the FSCS.
The FSCS is recommending that anyone who transferred out of the British Steel Pension Scheme should make a claim, even if you are happy with your decision to transfer. If you don't you may end up with less money in retirement than you should have. The FSCS may be able to compensate you up to £85,000.
If you have worked with any of these firms, you could be entitled to compensation.
Register now to have your claim evaluated for free by a claims management specialist.
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You do not need to use any third party to present a claim to either The Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS). You can make your own representation to them and their services are free.
Tower Hill Group Ltd is a limited company registered in England & Wales, registration number 12620190.
Tower Hill Group Ltd is registered with the Information Commissioners Office (ICO), registration number ZA760652.
The registered office is Kemp House, 152-160 City Road, London, UK, EC1V 2NX.