Tata Steel secures pension for 130,000 workers in new scheme

THE NEWSGHOST, NIGERIA – A report published on Friday, August 11, 2017, revealed that Tata Steel has reached an agreement over its £15 billion pension which will secure jobs at the company.

The Indian-owned company which employs more than 8,000 people across the United Kingdom (UK) is offering the 130,000 members of its pension scheme an option to switch to a new scheme or move to the government-backed pension lifeboat, Pension Protection Fund (PPF).

Tata first announced this deal in May. Then, the company had promised it would contribute £550 million into the British Steel pension scheme which will take 33% share of Tata’s UK business.

According to report, Tata has now confirmed it would set up an alternative to the PPF. The alternative would allow workers take a cut in their benefit in return for investment. Through a vote, workers agreed to accept lower benefits in exchange for investment that will secure jobs.

It is also assumed that this move will clear any barrier to Tata’s intent to merge its European steel business, including the Port Talbot steelworks in south Wales, with the German firm Thyssenkrupp.

In a statement, trade union groups said, ‘For over a year our members have feared for their security in retirement, and this announcement helps to bring that uncertainty to an end.’

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