Government would consider 'fair' proposals to improve BCSSS
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The government would consider proposals to change the British Coal Staff Superannuation Scheme if they are "fair to both scheme members and taxpayers". The trustees are looking to get improved benefits for BCSSS members, noting the Mineworkers' Pension Scheme has been promised a restructure.
In the run-up to the general election in July, the Labour party said it would “end the injustice” of the £10.6bn MPS. The sponsorless scheme enjoys a government guarantee but in return has to give up half of any surplus to the Treasury, in an arrangement created when British Coal was privatised in 1994. Its trustees have sought to change this for some time, without success.
The sister scheme of the MPS, the £8.6bn BCSSS, was not mentioned in the manifesto. However, its trustees said that “we believe, given the similarities, that it’s right to engage with the government. We want to know if changes can be made to BCSSS that would improve pensions for members.”
The trustees of the BCSSS have been working on their response to the possible changes to the MPS since the manifesto commitments were made.
“We are trying to engage with the government as part of the 2024 valuation consultation process,” the trustees added. “We’ve indicated to the government that we believe this is an opportunity to review the scheme’s structure, identify any areas of unfairness similar to MPS, and deliver better outcomes for members.”
The trustees will wait to hear the details of any changes to MPS before taking any further steps, they added.
A spokesperson at the Department for Energy Security and Net Zero said: “We are committed to transferring the Investment Reserve Fund to Mineworkers’ Pension Scheme members and to reviewing the surplus sharing arrangements.”
The spokesperson also said: “Should the trustees of the British Coal Staff Superannuation Scheme (BCSSS) wish to make proposals for changes that would be fair to both scheme members and taxpayers, we will consider them.”
Chris Kitchen, general secretary of the National Union of Mineworkers, told mallowstreet the NUM would expect changes to be made to the BCSSS following any changes to the MPS.
Kitchen thinks the BCSSS was not mentioned because the NUM’s membership includes mostly MPS members, which was reflected in its campaigning, although it also has some members in the BCSSS. The MPS has about 120,000 pensioner and deferred members, while the BCSSS has roughly 41,000.
“We expect the changes in respect of the Investment Reserve Fund to be made before the end of this year with the review of the Surplus Sharing arrangement in 2025,” Kitchen said. “We have been told that the Labour government will honour the commitments given in the manifesto.”
