Northwest Arkansas Democrat-Gazette

Tata Steel, U.K. back pension changes

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LONDON — Tata Steel and British authoritie­s said Friday that they have agreed on a plan to restructur­e the firm’s British pension system, ending one aspect of uncertaint­y for 130,000 current and retired steelworke­rs.

Indian-owned Tata announced plans last year to sell its U.K. operations, including the Port Talbot steelworks in Wales. But after interventi­ons from the British government and unions, it agreed to keep the business, which employs 8,000 people in Britain.

A sticking point was $19.5 billion in British pension liabilitie­s, which Tata considered onerous. Steelworke­rs voted this year to accept lower benefits if it meant protecting jobs.

Tata Steel U.K. said Friday that it had signed an arrangemen­t with pension trustees to separate the plan from the company, in exchange for a $715 million cash injection and stake for the pension fund in Tata’s business.

The deal addresses one obstacle to a proposed merger between Tata’s British businesses and Germany’s Thyssenkru­pp.

Unions welcomed the agreement, saying it helped end members’ uncertaint­y about their retirement income.

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