News and updates
For the latest news about the Scheme.
Latest News:
The latest news
For the most recent news about the Scheme, select a headline to read more information – from those listed below.
Retirement Living Standards
11 September 2024
Member Nominated Director Selection Process Results
07 June 2023
In April 2023 we reported that there was a vacancy for a Member-nominated Director in the Scheme. Gary Peters has been reappointed to the board unopposed and his new term of office will last until 31 March 2028.
Sale of Brush Electrical Machines Limited
16 August 2022
You may already be aware that the Brush Power Generation business is being sold by One Equity Partners to Baker Hughes Company, a US listed energy company. The deal was announced on 8 August 2022 and is currently at exchange stage. When the deal completes (expected to be in the Autumn), although there will be a change in ownership and responsibility for the Scheme at a higher level, Brush Electrical Machines Limited (BEML) will continue to remain as the principal employer for the Scheme.
The Trustee was made aware of the proposed sale in advance and instigated a review of the potential impact on the Scheme. When considering the impact of the sale on BEML, the Trustee took independent legal, actuarial and covenant advice. That advice did not raise any concerns, partly because the Scheme is in a strong financial position but also because there is an improvement in the overall covenant that supports the Scheme.
Baker Hughes has been clear that they take their obligations to support the Scheme very seriously.
The existing Trustee Directors (including the member nominated directors) remain in place for the time being and we will be working collaboratively with Baker Hughes in the coming months.
For the avoidance of doubt, your pension is not affected by the changes described above, and you are not required to take any action.
If you have any questions, please put them in writing to the Scheme administrator.
Planning to retire early?
01 August 2022
The Government has confirmed that the earliest age most individuals can start receiving their pension benefits will go up from age 55 to 57 in 2028.
This change is set out in the Finance Act 2022. It is designed to coincide with the change to the State Pension Age, which will rise from 66 to 67 between 2026 and 2028.
If you are thinking about retiring early and want to check when you can start receiving your Scheme pension, please get in touch with the Scheme administrators.
Member Nominated Director Selection Process Results
04 July 2022
In March 2022, we reported that there was a vacancy for a Member-nominated Director in the Scheme. Glendon Dallard has been reappointed to the board following an interview process and his new term of office will last until 31 March 2025.
Sale of Brush Electrical Machines Limited
22 June 2021
You may already be aware that Brush Electrical Machines Limited ("BEML") has been sold by Melrose to One Equity Partners (“OEP”). The deal completed on 18 June 2021. Although there is a change in ownership, BEML remains the principal employer for the Scheme.
The Trustee was made aware of the proposed sale in advance of its completion and instigated a review of the potential impact on the Scheme.
The Trustee and OEP have engaged constructively since the proposed sale was announced. During our dialogue, OEP have been clear that they take their obligations to support the Scheme very seriously. As part of the sale agreement, Melrose and OEP agreed that a one-off contribution of £25M should be paid into the Scheme. This was received on 16 June and is a very positive outcome for the Scheme. This contribution will significantly improve the funding position of the Scheme, and hence the security of members’ benefits, and will allow the Trustee to reduce the level of investment risk.
When considering the impact of the sale on BEML, the Trustee has taken independent legal and covenant advice, including advice on the level of financial support for the Scheme prior to and following the change in ownership. That advice did not raise any material concerns particularly given the significant contribution that had been agreed.
The existing Trustee board (including the member nominated directors) is largely remaining unchanged except for the Melrose representative and we look forward to working collaboratively with OEP.
For the avoidance of doubt, your pension is not affected by the changes described above, and you are not required to take any action.
If you have any questions, please put them in writing to the Scheme administrator.
What is a pension scam?
01 May 2020
It's important to be aware that while the majority of financial advisers are regulated by the Financial Conduct Authority (https://register.fca.org.uk) and pension arrangements are registered, however this is not always the case. There is a heightened risk that scammers and unscrupulous financial advisers will try to take advantage of the current COVID-19 (coronavirus) situation by targeting pension scheme members.
Your pension benefits are valuable assets. Like anything valuable, your benefits can become the target for scammers.
Pension scams can take many different forms, but broadly take the form of members being persuaded to transfer their pension benefits out of a scheme to allow access to their funds.
Some schemes will be unlawful and others may operate within the law, but members and schemes could face unauthorised tax charges.
Pension scammers may:
- Try to obtain personal information about you (either illegally or by convincing you to provide the information).
- Apply pressure for you to make a quick decision.
- Make claims that seem “too good to be true”.
- May try to flatter you in to making a bad decision.
- May downplay the risk associated with the decision.
You can find out more about pension scams at www.fca.org.uk/scamsmart.
How can I protect myself from a pension scam?
To avoid being the victim of a scam there are several steps you can take:
- Use the Financial Services Register and Warning List (https://www.fca.org.uk/scamsmart/warning-list) to check who you are dealing with.
- Beware of adverts on social media channels and paid for/sponsored adverts online.
- Do not click links or open emails from senders you don't already know.
- Avoid being rushed or pressured into making a decision. If a firm calls you unexpectedly, then use the contact details on the Register to check that you’re dealing with the genuine firm.
- Do not give out personal details (bank details, address, existing insurance/pensions/investment details). We strongly recommend reading the Pension Regulator's guidance on pension scams, which you can find at: https://www.thepensionsregulator.gov.uk/en/pension-scams
- If you are asked to transfer your pension elsewhere, we recommend exercising caution and visiting ScamSmart (www.fca.org.uk/scamsmart) which has specific guidance relating to COVID-19.
- If you are approaching retirement then the Money and Pensions Service (https://www.pensionsadvisoryservice.org.uk) is also a useful resource.
Remember that if it sounds too good to be true then it probably is.
News archive
Here are a number of previously published news items that you may find interesting.
Member Nominated Director Selection Process Results
01 April 2020
In February 2020 we reported that there was a vacancy for a Member-nominated Director in the Scheme. Gary Peters has been reappointed to the board unopposed and his new term of office will last until 31 March 2023.
Member Nominated Director Selection Process Results
01 April 2019
In February 2019 we reported that there was a vacancy for a Member-nominated Director in the Scheme. Glendon Dallard has been reappointed to the board unopposed and his new term of office will last until 31 March 2022.
Member Nominated Director Selection Process Results
25 June 2018
In May 2018 we reported that there was a vacancy for a Member-nominated Director in the Scheme. Andrew Pidgeon has been reappointed to the board unopposed and his new term of office will last until 31 March 2021.
State Pension Age increase
19 July 2017
The Government announced its intention to follow the recommendation John Cridland made in his independent review to increase the State Pension Age for those born between 1970 and 1978 from 67 to 68 in 2037-39. The exact date that you get your state pension will depend on your date of birth. You can work this out using the state pension calculator.
Expression of Wish
05 July 2017
One of the benefits offered by your pension is the ability, under the Scheme Rules, to pay a lump sum in the event that you die while you are a deferred member or in your first five years of retirement.
Completing an Expression of Wish form helps the Trustee decide who you would like to pass any lump sum due on to after your death, so it is important for you to regularly review your wishes and send us your latest Expression of Wish form.
The form is used to tell the Trustee who you would like to receive the payment. One reason for disregarding an Expression of Wish may be where the Trustee is aware that your circumstances have changed, and you have not completed a new Expression of Wish Form to reflect this, for example where you have married/registered a civil partnership, or have divorced. The Trustee might also take account of any subsequent will you have written. Also, Court Orders can affect death benefit payments. Because of this discretion, any lump sum paid will not normally be included in your estate for inheritance tax purposes.
For the reasons above, the Trustee is not bound by law to follow your wishes, but it will usually act on them unless there is good reason to do otherwise. The form also helps the Trustee to make a relatively quick decision at what would be a time of great distress for your family.
The Expression of Wish form can be found on the Member Forms page. You should return your completed form to the Bridon Scheme administration team at Aon.
Member Nominated Director Selection Process Results
28 June 2017
In April 2017 we reported that there was a vacancy for a Member-nominated Director in the Scheme. Gary Peters has been reappointed to the board unopposed and his new term of office will last until 31 March 2020.
Finance Act 2017
27 April 2017
The Finance Act 2017 received Royal Assent on 27 April 2017. The pensions-related measures in the Act are limited to changes to the tax treatment of overseas pensions:
Overseas transfer charge
A new 25% tax charge on transfers to Qualifying Recognised Overseas Pension Schemes (QROPS) is introduced. This will apply to transfers requested after 8 March, unless the transferring member is exempted. The main exemptions from this new “overseas transfer charge” are that it will not apply if during the 5 years following the transfer:
- Both the individual and the QROPS are in the same country (or both are within the European Economic Area); or
- The QROPS is an occupational pension scheme sponsored by the individual's employer.
Unless a member has provided information showing that the exemption applies at the time of transfer, the administrator (of the scheme paying the transfer) will automatically deduct the 25% charge. The charge can be applied retrospectively if at some point in the five years following transfer the individual’s circumstances change and the exemptions no longer apply; conversely, a tax charge paid at the time of the transfer can be refunded if one or more of the conditions are met within the next five years.
Taxation of benefits from overseas schemes
The changes bring the taxation of benefits from overseas schemes more into line with the taxation of benefits from UK registered schemes from 6 April 2017:
- for contributions on or after that date the member payment charges regime applies to members who have been resident in the UK at any time in the previous 10 tax years (currently a 5 year rule applies);
- tax is now charged on all of the overseas pension payable to a UK resident (compared to 90% previously); and
- the taxation of lump sums paid from overseas schemes is tightened up.
Non-UK registered schemes
From 6 April 2017 non-UK registered pension schemes will be subject to the normal taxation provisions that apply to UK registered schemes but usually only to the extent of their UK-relieved funds.
Pensions taxation - Lifetime allowance
06 April 2017
The lifetime allowance for most people is £1m in the tax year 2017/18. It applies to the total of all the pensions you have, including the value of pensions promised through any defined benefit schemes you belong to, but excluding your State Pension. From 6 April 2018 the government intends to index the standard lifetime allowance annually in line with CPI.
Review of State Pension Age
23 March 2017
In March, John Cridland CBE, former CBI director general, published his independent review of State Pension Age (SPA). This included the following recommendations:
- SPA should rise to 68 between 2037 and 2039;
- SPA should not increase by more than one year in any ten year period, assuming that there are no exceptional changes to the data used;
- All employers should have eldercare (as opposed to childcare) policies in place which set out a basic care offer; and
- People should be able to access a mid-life career MOT and review, which should be facilitated by employers and by the government using online support and through the National Careers Service.
The Government will consider the recommendations and respond. It was due to respond by May 2017 but this has been delayed until after the General Election.
Pension scams
31 January 2017
The Pensions Regulator releases new resources
The Pensions Regulator has released new resources in its scorpion campaign to prevent pension scams. These include videos for savers alerting them to typical scammer tactics, an online scam-spotting tool and a checklist for trustees to help them work through the due diligence they have to fulfil when considering transfer requests. Andrew Warwick-Thompson, Executive Director for regulatory policy at the Regulator, has also published a blog on scams in which he welcomes the Government's consultation on preventative measures; the Government has announced that it will respond to its consultation later in the spring.
Tips on how to protect yourself can be found on the Pension Regulators website http://www.thepensionsregulator.gov.uk/pension-scams.aspx
The Pensions Advisory Service (TPAS) online guidance
TPAS has launched a new online tool for members, on pension scams. TPAS describe this as a "self-service option giving information and guidance" and say that they want to provide the industry with a tool to which they can direct their savers. The tool includes a reminder that members can check to see if a firm or an adviser is regulated by visiting the Financial Conduct Authorities’ register.