The trustee of the New British Steel Pension Scheme has confirmed it has made the first payments to the 80,000 members that transferred from the old scheme.

Earlier this month, the scheme said it has comfortably met its funding targets, giving it the green light. Members who opted to join the new scheme will receive their first payment today (29 March). These payments include the April 2018 pension increases that the scheme offers.

The trustee said it is writing to pensioner members confirming the pension they are entitled to. Benefit entitlement statements will also be issued to deferred pensioner members in late spring, as well as a welcome newsletter.

Just under 97,000 members completed and returned their options form, of which 86 per cent (83,420) members chose to transfer to the New BSPS, and 14 per cent (13,580) opted to transfer to the PPF.

Although 25,000 members did not return the form, it is not known how many members failed to return the form because they had decided to transfer out. Transfers out of the scheme, amounting to £1.1bn, have been surrounded by controversy following inappropriate advice by some financial advisers, which lead to Work and Pensions Committee chair Frank Field stating members had been “shamefully bamboozled”.

Members moving with the old scheme into the PPF will have received a communication from the PPF’s administrator, Barnett Waddingham, with relevant contact details, the trustee said.

Commenting, new BSPS chairman Allan Johnston said: “I am pleased to welcome members to the new scheme which has been set up to provide a secure income in retirement for steelworkers and their beneficiaries.

“The last 18 months have been a challenging time and I would like to thank my former Trustee colleagues, scheme officers and advisers, and all those involved in the Time to Choose exercise. It is pleasing that around 100,000 old scheme members took the time to choose the outcome that was best for them based on their personal circumstances. The New BSPS offers benefits that for most members of the old scheme are the same or better than the PPF and over 80,000 of those members took the opportunity to switch to the new scheme.

“I would also like extend my best wishes to those old scheme members who are moving with that scheme into the PPF.”

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