British Steel Pensions

EDM number 68 in 1993-94, proposed by Frank Cook on 24/11/1993.

That this House notes with considerable dismay that on privatisation British Steel plc. wound up its existing pension scheme with an actuarial surplus of ú592 million and transferred all members, pensioners and beneficiaries of the old scheme into a new one in which scheme members still in employment benefited from substantial improvements in the level of prospective pensions which appear to have been financed out of the aforesaid pension surplus; notes with equal dismay that British Steel plc. has benefited also under the new arrangements as its revised terms allow the company's contribution rate to be reduced, set a cap on the level the company might need to make in the future, and widens its powers to reduce benefits to meet any possible future deficit yet acquire greater powers to cream off future surpluses; concedes that one small gain, to existing pensioners has been a small one-off improvement in widow's benefit; notes that the National Association of British Steel Pensioners have taken legal advice; condemns British Steel plc for instigating new arrangements which appear primarily to have benefited the company and current employees at the expense of all other beneficiaries; supports the National Association in any action that may be brought for breach of trust; and urges Her Majesty's Government to make certain that such perfidy is not permitted with the miners' pensions or the railways scheme, or any other scheme for that matter, ever again.

This motion has been signed by a total of 45 MPs.