Allan Johnston
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Steel pension scheme changes aimed at preventing cuts

Smaller increases in steel pensions would avoid the risk of collapse and cuts, a trustee has said.

A £485m deficit in the British Steel pension scheme has been deterring potential buyers of Tata Steel's UK business.

The UK government has launched a consultation on the scheme's future, in the hope of removing the stumbling block.

One option would be to limit annual pension increases to a lower measure of inflation.

Allan Johnston, chair of the board of trustees of the scheme, told BBC Wales it would be better than a rescue by the Pension Protection Fund, which would result in "significant" cuts in payments.

  • 26 May 2016
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