This page answers common questions about your Scheme. Use the links to jump to a section:
- The role of the Trustees
Who they are, how they’re chosen, and how to contact them - Running of the BCSSS
Who Capita, BlackRock and Coal Pension Trustees are, and what each one does - Scheme structure
The Government Guarantee, surplus sharing, and the 2015 changes - Scheme investments
Where your money is invested, and who decides - Financial position of the Scheme
What the latest valuation says about the Scheme’s health - BCSSS pensions
Your pension payments, tax, and how to update your details
The role of the Trustees
Who are the Trustees?
BCSSS has eight Trustees. Four of them are elected by members. The other four are appointed by the Trustees themselves for the skills and experience they bring to the Scheme. Five of the eight Trustees are also members of the BCSSS.
The elected Trustees serve for four years at a time. There’s no limit on the number of times they can put themselves up for election. The appointed Trustees are appointed for three years and can serve up to nine years in total.
See Meet your Trustees to find out more about them.
How are the Trustees appointed?
Elected Trustees
The four elected Trustees are chosen by the members who live in their constituency.
The membership of the Scheme is divided into four constituencies. An election is run for each of the constituencies every four years. Members who live in the constituency are invited to stand as a Trustee and vote for their preferred candidate.
The candidate who receives the most votes is appointed as an elected Trustee for the next four years.
Appointed Trustees
The four appointed Trustees are appointed by the rest of the Trustees, following a robust appointment process. The appointment must be approved by the government in the case of the Chair of the Committee and the Chair of the Investment Sub-Committee only.
There was a time when the four appointed Trustees were chosen by the government. This changed nearly 20 years ago. Since 2005, none of them has been appointed by the government.
What do the Trustees do?
Whether elected or appointed, all the Trustees have the same role and responsibilities. They work together to make sure the Scheme is well run, in line with the law and the Scheme rules, and to make sure members’ pensions are paid. The Trustees have a legal responsibility to work within the Scheme rules and the law.
The rules give the Trustees important responsibilities and powers that are key to the way the Scheme is run.
One of their key responsibilities is to make sure that every one of the Scheme’s pensioners is paid the right pension, without fail, every month. And that they receive any increases they’re entitled to under the rules of the Scheme.
Although members’ pensions are guaranteed by the government, the Trustees aim to make sure that there’s enough money in the Scheme to pay pensions without having to fall back on the guarantee. Setting an investment strategy that delivers this outcome is another key Trustee responsibility.
The Trustees appoint specialists to help them carry out their responsibilities. These include investment advisers and managers to shape and implement the Scheme’s investment strategy, and administrators who make sure members are paid on time. The Trustees monitor how these specialists are performing, to make sure they’re serving members well.
When running the Scheme, the Trustees have a duty always to consider the interests of members. Everything they do and every decision they make comes back to this duty.
What are the Trustees not allowed to do?
The Trustees cannot do anything that would be against the Scheme rules. They’re not able to change the rules – only the government can do that. But the government can only change them after consulting with the Trustees first. And the rules cannot be changed in a way that would reduce pensions.
The Trustees must consider members’ interests overall. This means they must treat different member groups fairly. Similarly, they cannot take up one person’s cause and champion it above the interests of all other members.
The Trustees have a legal duty to act carefully when sharing information. This means they cannot always share details of their work with members straight away. For example, they may need to wait until decisions are finalised or until they have legal clearance to share certain information. As soon as the Trustees are able to share an outcome, they will do so through the Scheme letters, the website and email updates.
The Trustees are not always the best people to answer direct questions about an individual’s pension or the Scheme more generally. Instead, the Scheme has a dedicated team of administrators. The administrators are set up with everything they need to answer the hundreds of queries and pieces of correspondence the Scheme receives from members each week.
How can I contact my Trustee?
You can send your query, addressed to the relevant Trustee, to the Scheme Secretary at bcsss.enquiries@coal-pension.org.uk or Coal Pension Trustees Ltd, Ventana House, 2 Concourse Way, Sheaf Street, Sheffield, S1 2BJ.
The Scheme Secretary will ensure that the Trustee receives your query.
Running of the BCSSS
Who helps the Trustees run the Scheme?
The Trustees appoint specialists to help them carry out their responsibilities. The main specialists they use are:
- Coal Pension Trustees Services Limited (CPT) – the executive to the Trustees. They run the BCSSS on a day-to-day basis on behalf of the Trustees.
- Capita – the Scheme’s administrators. They pay members and their beneficiaries their pension and provide members with information on their pension benefits.
- BlackRock – provides advice to the Trustees on where they should invest the Scheme assets, and manages the Scheme’s assets on a day-to-day basis.
- Government Actuary’s Department (GAD) – formally assesses the financial strength of the Scheme every three years.
What is Coal Pension Trustees Services Limited (CPT)?
Coal Pension Trustees Services Limited (CPT) is the executive to the Trustees. This means that it looks after the BCSSS on a day-to-day basis on behalf of the Trustees.
CPT’s role includes facilitating meetings and keeping records, helping the Trustees to make informed decisions, addressing Trustee correspondence, coordinating and monitoring the work of the other specialists, reporting back to the Trustees on a regular basis, liaising with the government as the Scheme’s guarantor and statutory authorities, and implementing Trustee decisions.
It employs around 40 members of staff who specialise in all areas of running a pension scheme. It is jointly owned by the BCSSS and the Mineworkers’ Pension Scheme (MPS).
What is Capita?
Capita is the Scheme’s administrator. They pay your pension, answer your questions, and look after your records. They also run the Scheme’s online member portal and telephone helpline.
The Trustees appointed Capita in 2017. As well as paying pensions and answering queries, Capita calculates pension benefits, supports members through key life events, and holds member data.
Capita does not own or invest the Scheme’s assets.
If you have any questions about your BCSSS pension, please contact Capita.
What is BlackRock?
BlackRock is one of the world’s largest investment management firms. It has significant experience helping pension funds, corporations, and individual investors manage and grow their money. BlackRock has extensive experience working with UK pension schemes, helping them meet their investment goals.
BlackRock advises the Trustees on investment strategy and manages the Scheme’s investments day to day.
The Trustees appointed BlackRock in 2026. BlackRock works within clear boundaries set by the Trustees.
What is the Government Actuary’s Department (GAD)?
The Government Actuary’s Department (GAD) is a UK government organisation that provides actuarial analysis and advice to the BCSSS Trustees. It’s a non-ministerial department, and independent of the Scheme’s guarantor, the Department of Energy Security and Net Zero (DESNZ).
The main role of GAD is to provide a formal report of the financial strength of the Scheme every three years. This is the actuarial valuation report, and the latest version is available at scheme publications.
Scheme structure
How does the Scheme work?
Employees of the Coal Board paid contributions into the BCSSS, building up their pension. The size of that pension is based on length of service and pensionable salary. Since members left the Scheme, the pension they built up has broadly increased in line with inflation.
Between 1994 and 2015, half of any reported surplus in the Scheme was used to pay members a bonus pension. These bonus pensions do not increase with inflation. Before 2015, the bonus pensions were reduced to nil over time if there was not enough money in the Scheme to pay them under a mechanism known as ‘standstill’.
In 2015 a number of changes were made to the Scheme, including the removal of the 50:50 surplus share arrangement and the protection of all bonuses. This meant that bonus pensions could not be taken away in future, even if there was not enough money to pay them.
The contributions both members and British Coal paid into the Scheme, along with the investment return earned on these contributions, make up the assets of the Scheme. These assets are invested by the Trustees and used to pay the pension earned by the members.
The total value of the pensions we expect to pay to members is around £5 billion more than the assets held by the Scheme, therefore the Trustees need to invest and grow the assets to try to meet all the expected future pension payments.
What is the Government Guarantee?
The Scheme has a Government Guarantee, also known as a Crown Guarantee.
The guarantee ensures that the assets of the Scheme will always be sufficient for members to receive their current pension entitlements.
So, if ever there isn’t enough money in the Scheme to pay members’ pensions, the government will pay the difference into the Scheme.
How much money has the Scheme paid to the government since privatisation? And how much money has the government paid into the Scheme?
The BCSSS has paid £3.2 billion to the government since 1994 under the surplus share arrangement. However, no money has been paid to the government since 2015.
The government has not had to pay any money into BCSSS since 1994 due to the guarantee. However, in November 2025 the government agreed to transfer the £2.3 billion investment reserve that was due to be returned to the government in 2033 to members and award a 41% bonus pension.
Why did the BCSSS Trustees agree to a 50:50 surplus share arrangement in 1994?
When British Coal was privatised in 1994, the BCSSS Trustees at the time were given two choices:
- Take the money and assets in the Scheme and make the Scheme independent of the government. If this had happened, there would be no safety net for the Scheme. So, if its investments had performed poorly, the Scheme would be in difficulty and the Trustees may have been unable to pay members their full pension entitlement.
- Accept a Government Guarantee so the members had security and members’ pensions would never go down. In return, the government asked for half of any money the Scheme’s investments made over and above what was needed to pay members’ pensions. The other half was to be used to pay bonus pensions to members. This extra money is known as a surplus.
The 1994 Trustees chose the option of the guarantee because they considered it to be the best way to make sure members’ pensions were safe.
The government has not had to pay any money into BCSSS since 1994 due to the guarantee. But the guarantee remains in force to support the Scheme in future if it becomes necessary.
Why is the surplus not shared with members? What changes were agreed in 2015?
Following the global financial crisis, the BCSSS, like many schemes at the time, had a deficit at successive valuations after 2008. There was very little prospect of the Scheme being able to increase pensions for at least the next 6 years. And there was a high risk that some or all bonus pensions that had previously been awarded would be lost.
In 2015, and after taking legal and actuarial advice, the BCSSS Trustees made an agreement with the government. Surplus sharing would end for members and the government, with any future surpluses staying in the Scheme. In exchange, BCSSS pensions would be increased every year and previously awarded bonuses would not be lost. The Government Guarantee would also remain in place.
Under the rules of the Scheme prior to the 2015 changes, the investment reserve was to be repaid in full to the government by 2019. As part of the 2015 changes, the Trustees agreed to make a part payment to the government of £500m in 2015, but the whole of the remainder of the investment reserve was to remain in the Scheme until 2033 to protect its financial position.
In order to pay members the pensions they have been promised, the Scheme still has to achieve strong returns on its investments into the future. This means taking investment risk. The certainty that previously awarded bonuses cannot be lost and that pensions will go up each year remains a valuable safeguard.
Will surpluses be shared with members in the future?
The Trustees have requested that the government change the Scheme rules to allow the Trustees to use all of any surplus in the Scheme to enhance member benefits.
See news for the latest on the surplus share discussions with the government.
Scheme investments
Who decides where to invest the Scheme assets?
The Trustees are responsible for deciding where to invest the Scheme assets. A number of the appointed Trustees have many years of experience of investing pension scheme assets.
BlackRock and other advisers as required provide specialist advice to the Trustees on where they should invest the Scheme assets. BlackRock invests the assets in line with the Trustees’ instructions.
How are the Scheme assets invested?
The Scheme takes a diversified approach, which means investing across different asset types and strategies to limit exposure to any single risk.
Bonds are an important part of the approach. They provide regular income that the Scheme needs to meet the very substantial annual pension payments. The Scheme also invests in company shares, property, and UK infrastructure, as well as holding some cash and other investments.
The Trustees are committed to building a portfolio that provides income to pay your pensions and grows steadily, while limiting losses. This gives us the best chance of paying your benefits and staying ahead of inflation. We focus on keeping enough cash available in the short term, so that we can pay pension benefits reliably even when market conditions are challenging.
To help stabilise the Scheme’s funding position, the Trustees invest in a liability driven investment (LDI) portfolio. This is designed to protect against changes in interest rates and inflation that could weaken the Scheme’s funding position. When economic factors increase the cost of paying your pensions, LDI investments are designed to rise by a similar amount, so that the Scheme’s ability to pay members’ pensions is protected – whatever the economic conditions.
Will the assets be invested differently if surplus sharing is agreed?
If changes to the surplus share arrangements are agreed with the government, the Trustees will give careful consideration to any changes that might be needed to the investment strategy, having taken the appropriate advice.
Why have the returns earned on the Scheme assets been lower than the benchmark returns in recent years?
The Scheme has underperformed the composite benchmark over the past 5 years to 31 March 2025, driven by the underperformance in the last 12/24 months to 31 March 2025. One of the biggest drivers of the underperformance over the 12 months to 31 March 2025 was weak performance from several illiquid assets like private equity and infrastructure relative to their asset class benchmarks.
The Trustees are continually reviewing the performance of the Scheme’s assets and are always looking for ways to improve it.
For example, to help stabilise the Scheme’s funding position, the Trustees have invested in a liability driven investment (LDI) portfolio. This is designed to protect against changes in interest rates and inflation that could weaken the Scheme’s funding position.
What is the Scheme doing about responsible investing?
The Scheme considers a number of important factors and trends when investing the Scheme’s assets. These include an increasing focus on environmental, social and governance (ESG) considerations, recognising that these factors can have a significant impact on long-term returns and risks.
ESG factors, such as climate change, poor corporate governance or actions taken by “rogue states” can impact investment outcomes and we therefore ensure that they are taken into account in all investment decisions.
An important ESG factor is climate change. Increasing regulatory changes, reporting requirements and public behavioural changes around climate change are all increasing the effects on the value of certain assets and so the risks of holding them.
The Scheme considers these factors in the following ways:
- From a risk perspective – do we invest in companies that might be adversely affected by the environmental trend?
- When looking for investment opportunities – are there ways we can benefit from the changes, such as investment in new technologies or “green” investments?
See responsible investing for more information.
What happens to the Scheme assets when the last member dies?
We expect that the Scheme will substantially finish paying pensions to members in around 45 years.
The total payments expected to be made from the Scheme over this period exceed the current value of the Scheme assets by around £5 billion (as at 2026). The Trustees need to invest and grow the assets to meet all the expected future payments. Therefore, we expect the assets to be used to pay the future member benefits, and we do not expect there will be any meaningful amounts of money left when the last person dies. Instead, the value of the Scheme assets is expected to decrease in future as the size of the membership falls.
If we ever find ourselves in the situation where we don’t have enough money to pay remaining pensions, then the Government Guarantee means the government makes up the difference. However, if there are any assets left in the Scheme once the last member dies, then these would be transferred to the government.
Financial position of the Scheme
Why does the actuarial valuation not show a surplus or deficit?
Following the changes made in 2015, the way the financial position of the Scheme is assessed changed. Rather than calculating whether the Scheme has a surplus or deficit, the Scheme is required to calculate the return needed to be earned on the Scheme assets in order to be able to meet the future expected payments from the Scheme.
However, as part of the ongoing surplus share discussions with the government, the Trustees have asked that the Scheme rules are updated so that valuations showing the surplus or deficit in the Scheme are produced going forward.
See news for the latest on these discussions.
What do the results of the 2024 actuarial valuation mean for members?
The Scheme’s 2024 valuation showed the Scheme to be in good financial health.
The last valuation showed that the Scheme needed returns of 0.5% per year below RPI inflation. This would be enough to pay members' future pensions and running costs. To also repay the investment reserve to the guarantor in 2033, the Scheme needed returns of 1.9% per year above RPI inflation. Since the 2024 valuation, the investment reserve has been transferred to members.
The lower these numbers, the stronger the financial position of the Scheme. Both numbers fell within the limits set by the Scheme rules, so no further action was needed.
See scheme publications for a copy of the valuation report.
BCSSS pensions
Why does my bonus pension not increase with inflation?
When awarding bonus pensions, the Trustees had a choice. They could award a higher bonus pension that stays the same each year. Or they could award a lower bonus pension that increases with inflation. After considering all the relevant facts at the time, the Trustees chose the higher amount. They believed this was in the best interests of members as a whole.
Bonus pensions have been paid from previous Scheme surpluses and the investment reserve that was transferred to members in 2025. They have increased members’ pensions over and above what members were entitled to at privatisation in 1994.
Why do many female members have lower pensions payable on their death than male members?
Between 6 April 1978 and 6 April 1993, the Scheme provided widow’s pension benefits on different terms for male and female members.
From 6 April 1978, male members had to pay 1% Family Benefit Contributions and automatically built up a widow’s pension payable on their death.
From 6 April 1980, female members could choose to do the same within 6 months of (i) 6 April 1980, (ii) joining the Scheme, (iii) getting married, (iv) their husband dying or becoming dependant on them, or (v) becoming financially responsible for a child.
Most female members did not opt in and so they typically have lower widow’s pensions payable on their death than male members.
How will the changes to RPI inflation in 2030 affect my pension?
The calculation of RPI inflation is set to change in 2030. We expect this change will mean lower increases on BCSSS pensions from this date.
Do I have to pay tax on my pension?
You may have to pay tax on your pension, as pensions are classed as earned income. The level of tax payable depends on the total amount of income you receive and what tax code HM Revenue & Customs (HMRC – formerly the Inland Revenue) tells the Scheme to use for you.
If you have any questions about how your tax code has been calculated, or about the amount of tax you pay, you should contact HMRC.
See pension and taxation for more information and HMRC’s contact details.
How often will my pension be paid?
BCSSS pensions are paid on a monthly basis, on the last working day of each month. See a list of future days at pension paydays.
I am not receiving my pension. How can I find out the current amount of my pension and lump sum?
Capita will not be able to give you this information over the telephone, but they will be able to provide you with an estimate of your benefits in writing. Contact Capita to request this estimate. It will usually be posted to you within five working days of Capita receiving your request.
Details of your pension are also provided in your annual benefit statement, which is posted to deferred members each summer and also available in the member portal.
How can I see my Scheme payslip/P60 details?
You can find your Scheme payslip and P60 in the member portal.
How do I register for the Scheme’s secure member portal?
Register by going to the login page and following the instructions.
How can I change the address you hold for me?
Change your address in any of these ways:
- Go to useful forms and find the ‘change your home address’ form to fill in and return.
- If you’ve registered for the Scheme’s secure member portal, change your address there.
- Contact Capita on 0333 222 0074 – you will need information about yourself (including your National Insurance number) to confirm your identity.
How can I change the bank details you hold for me?
Change your bank details in any of these ways:
- Go to useful forms and find the ‘change of bank details’ form to fill in and return.
- Contact Capita on 0333 222 0074 – you will need information about yourself (including your National Insurance number) to confirm your identity.
Can I make sure my close family members receive any lump sum death benefit payable if I die?
Yes, you can make a nomination under Rule 28A of the Scheme. Make a nomination in any of these ways:
- Go to useful forms and find the ‘benefits on death’ nomination form to fill in and return.
- If you’ve registered for the Scheme’s secure member portal, nominate your beneficiaries there.
- Contact Capita on 0333 222 0074 to request a form.
The Scheme’s Trustees will take your nomination form into account when working out who any lump sum benefits will be payable to on your death.
Can I transfer my other pension scheme benefits into the BCSSS?
No, the BCSSS is a closed scheme, which means that it cannot accept any new entrants or ‘new money’ into the Scheme.
Can I pay contributions into the BCSSS to increase my pension?
No, the BCSSS is a closed scheme, which means that it cannot accept any new entrants or ‘new money’ into the Scheme.
Can I transfer my pension out of the Scheme?
Yes, if you are under age 59 you can transfer your pension to any new employer’s scheme you may join (provided they can accept it) or any other HM Revenue & Customs approved arrangement.
If your pension transfer value is over £30,000 the law says that you must take independent financial advice. However, if it is under £30,000 we would strongly recommend that you think very carefully and take financial advice before you transfer your benefits out of the Scheme.
See transferring your pension for more information.
What is the Scheme’s Normal Retirement age?
BCSSS’s Normal Retirement Age (NRA) is 60.
Can I take my benefits before I am 60 years old?
Yes, you can take your benefits at any time from age 50 (except for any benefits re-instated in the Scheme after 6 April 2006).
If you do choose to take your benefits before age 60, they may be reduced. This is to take account of the fact that your pension will be paid for longer than it would have been had you taken your benefits at age 60.
Can I take my benefits after I am 60 years old?
Yes, you can take your benefits at any time until your 70th birthday. If you do choose to take your benefits after age 60, they may be increased. This is to take account of the fact that your pension will be paid for a shorter period than it would have been had you taken your benefits at age 60.
I can take my pension from age 50 unreduced but I don’t want to take my pension yet. Can I leave it in the Scheme until a later date?
Yes, you have the option of leaving your pension in the Scheme until your 70th birthday. If you do choose to take your benefits after age 50, they will be increased. This is to take account of the fact that your pension will be paid for a shorter period than it would have been had you taken your benefits at age 50.
What happens to my pension if I get divorced?
If you get divorced, your pension may be taken into account along with your other possessions when working out a financial settlement. There are three possible outcomes:
You keep your pension in full and your ex-spouse receives other possessions, such as the house.
Your ex-spouse can be awarded a proportion of your pension through an earmarking order. Your ex-spouse’s proportion will only be paid when you choose to take your benefits.
Your ex-spouse can be awarded a proportion of your pension through a pension sharing order. If this is the case your ex-spouse would have the option to either keep their share, known as a pension credit, in the BCSSS or alternatively transfer it to an approved pension scheme of their choice.
See divorce for more detail.