Tata Steel UK’s pension scheme deficit is set to balloon to 1-2 billion pounds ($1.25-$2.5 billion) and Britain’s largest steelmaker believes it could face insolvency unless a way can be found to tackle it, the scheme’s trustee has told members.
Indian parent company Tata Steel has held talks to merge its European assets with Germany’s Thyssenkrupp, but the success of those talks hinges on Tata being able to separate itself from its British pension scheme.
The steelmaker, whose UK unit lost 2 billion pounds in the five years to March 2016, is looking for regulatory approval to spin off the 15 billion pound pension scheme into a standalone entity, cut benefits and continue trading.
The trustee for the scheme warned members in a letter th…
Read the full article at: http://www.firstpost.com/business/tata-steel-uks-pension-scheme-deficit-to-go-up-to-2-5-bn-co-may-face-insolvency-3222704.html