After the completion of the consultation process with employees, Tata Steel UK has announced that it will close the British Steel Pension Scheme to future accrual from March 31 and staff will get a new contributory scheme for their retirement savings thereafter.
Tata Steel Ltd disclosed the development in a regulatory filing in BSE on Wednesday.
During the consultation process, the company said that it had spoken to more than 4,000 employees at more than 90 face-to-face briefings across the UK and also received feedback from trade unions.
According to the statement, after considering responses received and sharing the review with the trade unions, Tata Steel UK has informed its employees it will close the British Steel Pension Scheme to future accrual.
"From 1 April 2017, employees will save for their retirement through a new and competitive defined contribution pension scheme," Tata Steel said in a filing to BSE.
"After carefully considering all the responses received and sharing the review with the trade unions, Tata Steel UK has informed employees it will close the British Steel Pension Scheme to future accrual with effect from 31 March 2017," Tata Steel said.
Tata Steel, which owns the UK's largest steelworks at Port Talbot in South Wales among other units, has been working on finding a solution to the crisis in the steel industry since it announced a major restructuring in March 2016.
