Tata Steel UK has received confirmation from The Pensioners Regulator that it has approved a Regulated Apportionment Arrangement (RAA) in respect of the British Steel Pension Scheme. The BSPS has now been separated from Tata Steel UK and a number of affiliated companies.
As part of the RAA, a payment of 550 million from Tata Steel UK has been made to the BSPS and share in Tata Steel UK, equivalent to a 33% economic equity stake in the company, have been issued to the BSPS Trustee under the terms of the shareholders' agreement.
Tata Steel has also agreed to sponsor a proposed new pension scheme, subject to certain qualifying conditions being met.
The net financial impact of the RAA including payment of the agreed 550 million settlement amount will be reflected in the Q2 FY 2018 financials for the company.
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