The Pensions and Lifetime Savings Association (PLSA) has published a response to the British Steel Pension Scheme (BSPS) consultation.

The consultation is on the options for helping the scheme, steel workers and affected areas as part of a wider package of government support for UK Steel.

PLSA says the consultation should achieve three core objectives – there should be a sustainable solution for its members, that solution should not be detrimental to the sustainability of DB provision more broadly, and the government should commit to working with the PLSA taskforce and wider industry to assess challenges DB schemes face.

PLSA chief executive Joanne Segars said the implications of change for British Steel must be workable for other schemes.

She said: "It is inconceivable the government can realistically consider these changes for the British Steel pension scheme without also considering amendments for all schemes, given that many defined benefit schemes face similar challenges."

"While securing the best outcome for members of the British Steel pension scheme is of paramount importance in this instance, it must be balanced against securing the best outcome for all defined benefit pension scheme members."

Segars went on to say that the proposals for the BSPS must not become the default solution for any struggling DB scheme, and urged the government to commit to a long term review.

She said: "We call upon the government to work with our defined benefit taskforce and the wider pensions industry to achieve it."

The PLSA believes there is a strong regulatory system in place and the Pension Protection Fund (PPF) offers good outcomes for pension scheme members when their scheme sponsor is unable to meet its obligations.

The Association recommends the government proceed with option three, set out in its consultation paper, along with additional safeguard – outlined above.

First published 30.06.2016

Lindsay.sharman@wilmingtonplc.com