Key Takeaways
- • The British Coal Staff Superannuation Scheme (BCSSS) has appointed BlackRock as fiduciary manager for its £8bn defined benefit pension scheme, announced on 1 July 2026.
- • BlackRock will advise the trustee board on investment strategy and take on day-to-day portfolio management, while the trustees retain responsibility for setting strategy and managing risks.
- • The scheme serves more than 39,000 members, the majority of whom are now retired, and BlackRock already manages more than £2bn of fixed income and equity mandates for it as of 31 March 2025.
- • The trustees cite the scheme's continuing maturity and the need to balance pension payments from investment income, funding stability and long-term asset growth.
- • Trustees are also due to meet UK industry minister Chris MacDonald in July over surplus-sharing rules, having sought clearer valuations and the ability to distribute surplus between triennial valuations.
Summary
The British Coal Staff Superannuation Scheme (BCSSS) has appointed BlackRock as its fiduciary manager for its £8bn pension scheme, according to the scheme's announcement on 1 July. The scheme serves approximately 39,000 members, and the majority are now retired. Publisher coverage described the mandate as one of the largest fiduciary management mandates undertaken in the UK, and one report valued the assets at $10.6 billion.
Under the arrangement, BlackRock will advise the trustee board on investment strategy and take responsibility for day-to-day portfolio management. The trustees retain responsibility for setting the investment strategy and managing risks. The trustees said the decision was made to help manage the scheme's continuing maturity, noting that it must balance paying pensions from investment income, keeping funding stable and ensuring assets grow over the long term. Cheryl Agius, chair of the BCSSS trustee board, said BlackRock's "expertise, scale and experience working with some of the UK's largest pension schemes make it well placed to support the scheme now and in the future."
According to the scheme's latest annual report, BlackRock already manages substantial fixed income and equity mandates for the scheme, worth more than £2bn in total as of 31 March 2025. Coal Pension Trustees, a separate organisation supporting the trustees of both BCSSS and the Mineworkers' Pension Scheme, continues to provide support services to the trustee board.
The appointment comes as surplus-sharing discussions continue with government. The trustees announced they are due to meet Chris MacDonald, the government's minister for industry, later in July. At an earlier meeting in February, the trustees proposed rules allowing "clear valuations" showing the scheme's surplus or deficit position, and allowing trustees to use 100% of any surplus to boost pension payments. They have also requested powers to distribute any surplus "when it arises, rather than waiting for the next three-yearly valuation."
Under the arrangement, BlackRock will advise the trustee board on investment strategy and take responsibility for day-to-day portfolio management. The trustees retain responsibility for setting the investment strategy and managing risks. The trustees said the decision was made to help manage the scheme's continuing maturity, noting that it must balance paying pensions from investment income, keeping funding stable and ensuring assets grow over the long term. Cheryl Agius, chair of the BCSSS trustee board, said BlackRock's "expertise, scale and experience working with some of the UK's largest pension schemes make it well placed to support the scheme now and in the future."
According to the scheme's latest annual report, BlackRock already manages substantial fixed income and equity mandates for the scheme, worth more than £2bn in total as of 31 March 2025. Coal Pension Trustees, a separate organisation supporting the trustees of both BCSSS and the Mineworkers' Pension Scheme, continues to provide support services to the trustee board.
The appointment comes as surplus-sharing discussions continue with government. The trustees announced they are due to meet Chris MacDonald, the government's minister for industry, later in July. At an earlier meeting in February, the trustees proposed rules allowing "clear valuations" showing the scheme's surplus or deficit position, and allowing trustees to use 100% of any surplus to boost pension payments. They have also requested powers to distribute any surplus "when it arises, rather than waiting for the next three-yearly valuation."
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