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British Steel Pension Scheme extends transfer value deadline

British Steel Pension Scheme extends transfer value deadline

The British Steel Pension Scheme (BSPS) has extended the deadline for members who have received a cash equivalent transfer value (CETV) to decide whether to transfer out. 

Members who have obtained a CETV which is due to expire on or before 25 January 2018 have been granted an extension until 26 January 2018. 

Last month New Model Adviser® revealed that many IFAs were no longer accepting new business because they were 'overwhelemed' by enquiries from BSPS members wanting to transfer out before their CETV valuations expired in December. 

The rush to transfer came as a result of large number of scheme members being handed their transfer value at the same time. CETVs expire after three months.

heightened transfer value, courtesy of a £250 million injection into the scheme from Tata in August, expired. 

One IFA has already agreed with the Financial Conduct Authority (FCA) to stop all DB transfer related activity amid concerns about the advice it was giving to steelworkers from the Port Talbot British Steel site. Unions have also expressed fears over members being targeted.

BSPS trustee chairman Allan Johnston said: 'We are concerned by reports that some members have been targeted with inappropriate financial advice and feel pressured into making a decision on transferring their BSPS benefits.

'While the trustee cannot advise people what to do with their pension we would urge eligible members to think carefully before transferring their scheme benefits out of the BSPS to another pension arrangement as they would be giving up guaranteed future pension income in return for income that might not be guaranteed and could vary depending on how it is managed.'

 The move follows the announcement that the trustee had extended the deadline for BSPS members to submit their 'Time to Choose' forms to 22 December. It has also added a transfer related Q&A on its website.  

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