City financier Edi Truell puts forward new rescue plan for Tata Steel UK pension scheme

 
Francesca Washtell
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The future of UK steel workers has been hanging in the balance since the crisis began last year (Source: Getty)

A leading City financier is looking to join Tata Steel UK’s £15bn British pension scheme as a trustee and has set out an ambitious plan to revamp the pensions rescue plan.

Edi Truell has sent an outline to current trustees proposing a merger between Tata Steel’s specialty unit with Sheffield Forgemasters, an advanced steel materials business, Sky News reported.

Truell’s charity would then pump another £200m of investment into the merged group and take on responsibility for the sprawling pension liabilities.

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He has then proposed that he and public sector pensions executive Luke Webster be co-opted as trustees.

Last week, the chair of trustees at the pension scheme, Allan Johnston, told the Financial Times the board was in negotiations with Tata Steel about channelling several hundred million pounds into the scheme.

Tata Steel is one step closer to saving its £15bn retirement scheme from falling into the government's pension lifeboat.

A statement from the British Steel Pension Scheme trustees last week indicated the retirement scheme was another step closer from falling into the government's pensions lifeboat. Trustees revealed Tata Steel had initiated talks with both scheme trustees and "relevant regulatory bodies".

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Truell was one of the bidders for Tata Steel’s UK assets during the months-long sales process last year.

In December, Tata Steel forged a £1bn agreement to rescue the Port Talbot plant and said it had reached an agreement with trade union’s over the pension scheme.

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