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• Coal Pensions Contacts

Coal Pensions: The Former British Coal Pension Schemes

The Guarantee Arrangements

Prior to the privatisation of British Coal in 1994, the Trustees of the two British Coal pension schemes reached agreement with the Government whereby the Schemes were given Government solvency guarantees that ensured that pension entitlements at privatisation would rise at least in line with inflation.  In exchange the Government receives a 50% share of surpluses from Scheme valuations, which is payable in instalments over 10 years.  The remaining 50% is available to the Trustees for distribution to Scheme members as benefit improvements and has meant that members of the schemes have received the following bonuses:

MPS bonuses

• 20% in 1997
• 9% in 2000

BCSSS bonuses

• 6.7% in 1996
• 10.8% in 1998
• 11.0% in 2001

All these bonus increases are separate from, and additional to, the inflation-linked increases applied to pensions each year to maintain their real values.

The MPS valuation was completed in July 2003 and the BCSSS valuation results announced in March 2004.   For both Schemes the valuations have shown that their Guaranteed Funds, which pay basic pensions, were in deficit.

The Guarantee has come into its own and demonstrate what a good deal it is to Scheme members.  Under the terms of the current arrangements, and the Scheme’s rules, the deficit in the schemes has been made good by an automatic transfer from the Investment Reserve in both schemes.  The transfer in the MPS is £350 million, and £220 million in the BCSSS.

Despite these deficits the Government has agreed to proposals that means pensions for members of both MPS and BCSS will be unaffected until at least the next valuation despite the recent valuation deficits: not only will basic guaranteed pensions increase in line with inflation, in total bonuses awarded from previous valuation surpluses will continue to be paid at current levels.

Contacts:

BERR

David Leitch,
E-mail: David.Leitch@berr.gsi.gov.uk
Telephone: 020 7215 5252

Mineworkers Pension Scheme

If you have any enquiries regarding your MPS pension or entitlement please contact the relevant number below:

MPS Administration Office general enquiries: 0845 606 4444
Trivial pension commutation: 0845 602 1603
Concessionary Fuel: 0845 759 0529
Tax and tax code enquiries: 0845 300 3939

Or write to:

The Administration Office
Mineworkers’ Pension Scheme
Sutherland House
Russell Way
Crawley
RH10 1UH

E-mail: mps enquiries

British Coal Staff Superannuation Scheme

If you have any enquiries regarding your BCSSS pension or entitlement please contact the Administration Office at:

For surnames beginning A-J: 0845 609 0012 (+44 114 2034613)
For surnames beginning K-Z: 0845 609 0013 (+44 114 203 4629)

Or write to:

The Administration Office
BCSSS
Queen’s House
105 Queen Street
Sheffield
S1 1GN

E-mail: bcsss enquiries

Remember to quote your National Insurance/Scheme number on all correspondence.