If you transferred out of the British Steel Pension Scheme (BSPS), you could be due compensation after receiving unsuitable advice. Find out how to make a complaint.
22 December 2021 update
Our Board has asked for a consultation to be prepared on a redress scheme for former members of the British Steel Pension Scheme (BSPS) who transferred their pension.
Under a redress scheme, firms would be required to review advice they gave to BSPS members to transfer their pension. If the advice was unsuitable and resulted in a financial loss, the firm would be required to provide compensation.
Subject to final approval by our Board we expect to launch a consultation by the end of March 2022. Whether a redress scheme is then put in place and its scope would be decided following consultation. Sign up for email updates to keep up to date.
In the meantime, you should still consider making a complaint. If your firm has gone out of business you should consider making a claim with the Financial Services Compensation Scheme.
The BSPS was restructured in 2018. Before the restructure, many people received advice to transfer out of the defined benefit (DB) pension scheme into a personal pension scheme.
In nearly half of the cases we’ve reviewed, this advice appeared to be unsuitable.
You can use our advice checker to find out if the defined benefit (DB) pension transfer advice you received was right for you.
If you received unsuitable advice, you may be due compensation. To receive this compensation, you need to make a complaint. Hundreds of steelworkers have already complained.
You don’t need to give a specific reason for your complaint. All you have to do is ask for your advice to be reviewed as you’re unsure whether it was suitable for you.
Even if you're happy with your decision to transfer, you should still consider complaining. If you don’t, you may end up with less money in retirement than you would have done if you hadn’t left the scheme.
How to complain
Make a complaint yourself
If you’d like to make a complaint yourself, find out about the steps you need to take.
MoneyHelper has published a template complaint letter (DOC) for former BSPS members.
Use the Financial Ombudsman Service
If you don’t want to complain directly to your adviser first, the Financial Ombudsman Service can do it for you.
Bringing a complaint to the ombudsman service is straightforward and won’t cost you anything. Your adviser will be given the chance to put things right and must give you a final response within 8 weeks for most types of complaints.
If you’re unhappy with their response, or if they don’t reply, the ombudsman service can then investigate the complaint.
If your adviser is no longer in business
If your adviser has gone out of business, you’ll need to make a claim with the Financial Services Compensation Scheme (FSCS).
If you have any questions, you can contact MoneyHelper on 0800 015 4402 and visit their webpages.
Our action with firms
In 2019, we commissioned a review into DB transfer advice. Our review covered many firms who had provided advice to BSPS members.
Where our review found concerns with the suitability of advice, we’re asking firms to carry out a wider review into their pension transfer advice, to find any cases where they provided unsuitable advice and to put this right.
Where a firm undertakes a review, it will contact you with an offer to review the advice you received. To allow the firm to review the advice it gave you, you’ll need to confirm that you wish to be included by returning the ‘Opt in’ form. However, we encourage all former BSPS members to consider complaining in the meantime.