Reader explains who really benefited from the British Coal pension boost - your letters, and a picture throwback of a tribute ride
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How miners got new pay-out
The article “Ex mine workers in pension boost” requires an amendment plus additional information. The British Coal Staff Superannuation Scheme (BCSSS), only relates to salaried staff, not weekly paid, who have their own schemes.
How this bonanza came about is entirely down to the trustees, appointed after a ballot of members who engaged expert investment teams to maximise income from members' contributions.
These were so successful that the returns exceeded, by far, the outgoings of the scheme, resulting in massive reserves to provide an additional safeguard – a 1994 agreement with the government of the day in which the reserves would be handed over to it, guaranteed that if, at any time, the annual proceeds of the investments failed to cover the cost, the shortfall would be paid by the government.
Since the demise of British Coal about 25 years ago, there has been a considerable reduction in the number of payees, so the trustees decided that the government, as guarantor, was no longer needed.
The reserves should be distributed amongst the remaining beneficiaries in the form of the New Bonus Pension, amounting to 41 per cent of the guaranteed pension and backdated to November 2024. I am one of the lucky ones and we were only notified a few days before Christmas, so it was a real present. Even the Exchequer will get some benefits through income tax.
