This means that the stake the BSPS has in TSUK is reduced to less than 1 per cent. As the shares in TSUK are recorded at nil value by the scheme, the reduction has no impact on the value of the pension fund assets or its funding position, the trustees stated.
Alasdair McDiarmid, operations director for Community, a steelworkers’ union, said the announcement of a £668m surplus demonstrated a better than expected funding position of the scheme at the time it was set up, and strengthened the case for some of the benefits sacrificed by members to be restored.
He said: "We’ve always said that when scheme funding allows, Tata and the trustees have an obligation to restore benefits, in particular for those members with pre-1997 service.
"Community also welcomes news of the debt for equity swap, which will help deliver a sustainable future for Tata Steel UK and strengthen the financial position of the scheme sponsor.
"It is disappointing, however, that the debt restructure means the loss of one of the three methods to restore benefits that were agreed as part of the regulated apportionment arrangement"
Mr McDiarmid noted that Community would be "watching carefully" to ensure that members with pre-1997 service benefitted if, as expected, the funding position of the scheme continued to improve.
This story has been changed post-publication to reflect the fact that the £600m of transfers from the British Steel Pension Scheme were not additional to the £2.8bn which had taken place but were delayed, and so handled by the new scheme.