Tata Steel offers £520m to British Steel Pension Scheme
Tata Steel offers £520m to the British Steel Pension Scheme. Richard Farr, Managing Director, comments on the news and explains how the scheme deficit will have increased since May last year, when the scheme’s section 179 deficit stood at £1.5bn. Richard estimates that the market roll forward to January 2017 would equate to over £2bn. Therefore, further funding may be needed before a merger.
“The estimated market roll forward to January 2017 would equate to over £2bn,” he said, explaining that further funding from either Tata or ThyssenKrupp may be required before the merger and RAA can go through. “This is actually part of a process, not the end result.”
Read the full article in Pensions Expert, by Angus Peters, which includes comments from Richard and other industry experts (subscription to Pensions Expert required).
Richard was also quoted in FT Adviser.