Sault Ste Marie, Ontario-based Essar Steel Algoma Inc. announced Monday that the Ontario government approved a new regulation that will provide funding relief for the company's defined benefit pension plans.
The new policy will allow for fixed payments over the next three years and extend the amortization period through 2024. Additionally, the regulation will be retroactive, dating back to December 1, 2013.
According to company statements, Essar Steel Algoma's pension contribution requirements have more than doubled each year to unsustainable levels. "This new funding formula provides Essar Steel Algoma with greater predictability in the near term and more manageable payments over the long term," said company CEO Kalyan Ghosh.