Britains pensions regulator on Friday gave the initial approval to a proposal from Tata Steel UK to restructure the British Steel Pension Scheme (BSPS) and prevent the company becoming insolvent.
The development is likely to finalise pension arrangements that were a hurdle to the sale of Tata Steels UK assets and lead to merging its European steel business with German company ThyssenKrupp.
The UK regulator said the proposal brings greater certainty for around 130,000 scheme members, secures a significant cash contribution to the BSPS and minimises the impact on the Pension Protection Fund (PPF).
It said the restructuring will be done through a regulated apportionment arrangement (RAA). The BSPS will receive £550 million from the Tata Steel …
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