Wales

£10,000 pension top-up for Tata workers in their 50s

Workers last April in Port Talbot when the plant was up for sale Image copyright Getty Images
Image caption Workers last April in Port Talbot when the plant was up for sale

A one-off pension contribution of up £10,000 could be made to Tata steel workers in their 50s who plan to retire early, BBC Wales understands.

The actual amount will vary for each person depending on years of service and the length of time they have paid into the pension scheme.

Three unions will begin balloting members on the proposal from Monday.

The deal includes investment in Port Talbot and moving from a final salary pension to a less generous scheme.

Clarification on the new pension arrangements for older workers is thought to be one of the reasons the three unions decided to urge members to support the change.

Previously, the Community, Unite and GMB unions said they would not make a recommendation to members on which way to vote.

This arrangement does not involve extra funding from Tata for the pension deal set-out last month but will instead involve money being moved around within that pot.

Steel pension assurances urged

It has become clear that there has been significant unhappiness amongst Tata's staff about the pension proposals and there was no guarantee that the proposals would accepted by union members.

It us too early to say what, if any, impact these arrangements for older workers along with the unions decision to support the pension changes will have.

This ballot is consultative and Tata is not bound by the result.

More on this story