Tata Steel on Wednesday said the pension funds for its Corus unit had a surplus of 500 million pounds ($1 billion) for the three months period ended June 30, 2008 and it is estimated to be higher in September quarter.
"Pension Funds of Corus were in aggregate surplus of 500 million pounds ($1 billion) as on June 30.
"The UK Pension Funds of Corus are significantly de-risked with around 70 per cent of the portfolio in debt related instruments," Tata Steel said.
The statement was issued by the world's sixth largest steel maker amid news reports that the employee pension fund of its British unit -- Anglo-Dutch steel company Corus Group Plc-- lost Rs 5,352 crore (Rs 53.52 billion) because of its exposure to equity and other financial markets.
Terming the reports as 'speculative and uninformed', Tata Steel said, "based on initial quarter end assessment, the surplus as on September 30 is estimated to be higher than end June 2008."
As per media reports, Tata Steel's pension liabilities to Corus employees include defined benefit plans, where a company guarantees a certain level of pension payment regardless of the returns on investment.
However, the company did not provide any further details of the Pension Fund performance saying that it 'would be disclosed at the time of the publication of the consolidated financial results of the company in November 2008.'
