Posted on 14 Aug 2017
Tata Steel UK announced it had signed the documentation for a Regulated Apportionment Arrangement (RAA) with the Trustee of the British Steel Pension Scheme, offering more sustainable outcomes for pensioners, employees and the business.
When the RAA takes effect the British Steel Pension Scheme will be separated from Tata Steel UK and a number of affiliated companies.
It follows an announcement on 16 May that the key commercial terms of an RAA had been agreed in principle between the company and pension scheme Trustee.
Consequent to the signing of the documentation, The Pensions Regulator has issued a determination notice and a clearance statement in response to Tata Steel’s application for clearance and approval in respect of the RAA. This has resulted in the commencement of a 28-day period, during which directly affected parties by the RAA may refer the decision to approve the RAA before a tribunal of the UK court system called the Upper Tribunal. The
Pension Protection Fund has today issued confirmation of non-objection to the RAA.
At the end of that period, and in the absence of any referrals, it is expected that The Pensions
Regulator will confirm its approval of the RAA, which would take effect after Tata Steel UK makes a payment of E550 million to the British Steel Pension Scheme. At the same time, shares in Tata Steel UK would be issued to the British Steel Pension Scheme Trustee under the terms of a shareholders’ agreement, which would lead to a 33% economic equity stake in Tata Steel UK being held by the Trustee.
