You could be owed money if you were given poor advice to transfer out of the British Steel Pension Scheme (BSPS). Find out how this is being put right.First published: 30/05/2021 Last updated: 20/03/2023 See all updates
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We’re making advisers check the advice they gave because many people who transferred out of the pension scheme were given the wrong advice.
If you were one of them, you could be owed money, and the adviser will have to pay you back the money you lost. We’re calling this a ‘redress scheme’.
Look out for a letter from your adviser. It’s important you provide any extra information they ask for and make sure they have up to date details for you.
Helping you get the retirement you worked for
We’ve set strict rules about how advisers must put things right for former BSPS members and we’re monitoring them closely to make sure it happens.
We are producing a calculator for advisers to work out whether you are owed redress under the scheme. Find out more about how this will work on our redress calculations page.
The aim of any money you get is to put you back in the financial position you would have been in at retirement had you stayed in the BSPS.
The firm that gave you the advice to transfer is responsible for any money you are owed, even if the adviser no longer works there or you are now with a different adviser.
It’s your choice how you use the money but you should consider investing any payment you receive in a personal pension. MoneyHelper has more information and impartial pension guidance, including their Pension Wise service for over 50s.
BSPS Helpline: 0800 098 4100
What will happen and when
Review of advice starts
Find out if the advice was wrong
Calculation of what you could be owed
Offer of payment is made to you
If accepted - get back what you’re owed
If your adviser is no longer in business
If your adviser has gone out of business, you should make a claim to the Financial Services Compensation Scheme (FSCS).
The FSCS has a list of firms that gave BSPS advice and are no longer trading, along with details of how to make a claim. If the FSCS finds that you had poor advice and are owed money, they can compensate you up to £85,000.
We’ve put rules in place to reduce the risk of advisers going out of business during the scheme. This makes it more likely that you’ll receive the full amount of any money you’re owed.
Why you might be excluded
There are many reasons why you might not be included in the redress scheme.
It could be because:
Opting out of the redress scheme
You can choose not to take part in the redress scheme. Your adviser will ask this when they first write to you.
If you opt-out, it’s important to understand that if you change your mind, it might be too late to get any money back because the usual time limits for making a complaint will apply.
Under our redress scheme, advisers must still review the advice given to BSPS members even if the time limits for making a complaint run out after the scheme starts.