The British Steel Pension Scheme Trustee has transacted a third buy-in policy with Legal & General, under which around 30% of liabilities (GBP 2 billion) were insured, bringing the total insured to around 60% in December 2022. The buy-in insurance policies purchased using existing assets of the scheme, are held as long-term investments of the Scheme and have the advantage of perfectly matching a proportion of the liabilities, thereby de-risking the scheme from potential future mismatch between asset and liability values with changes in market variables. As of 30 September 2022, the BSPS represented a net surplus in the Tata Steel balance sheet of GBP 1.5 billion. During the period of unprecedented interest rate volatility in the UK in September-October 2022, the BSPS funding level actually improved, and it had sufficient collateral to maintain its interest rate and inflation hedges. Overall, the scheme continues to have a healthy surplus and its risk position has improved since it’s restructuring in 2018, and quarter-on-quarter.The BSPS Trustee previously entered into buy-in policies with Legal & General in November 2021 and May 2022 to insure 5% and 25% of liabilities respectively (totaling about GBP 2.8 billion). Tata Steel UK is fully supportive of the Trustee having secured insurance cover of the scheme’s liabilities and expects that a residual buy-in for the remaining ~40% of liabilities will be completed in the first half of calendar 2023, depending on market conditions. With full insurance buy-in completed the scheme and in turn Tata Steel UK will be fully covered against any funding shortfalls arising from changes in underlying conditions or market variables in future.The BSPS is an independent fund with a team managed by its own board of Trustees, separate from Tata Steel UK. Earlier in 2022, the Trustee appointed Legal & General Investment Management (LGIM) to manage the combined assets of the Scheme, bringing additional skills and expertise as the scheme approaches full buy-in.