Tata Steel UK's pensions trustee expects 1-2 billion pound deficit

Tata Steel doesn't expect to be able to pay contributions needed to close deficit, said a trustee

The trustee for Tata Steel UK's pension scheme is set to tell its members it expects to report a scheme deficit of between 1 billion and 2 billion pounds at its next actuarial valuation at end-March.

In a letter to members seen by Reuters, the trustee said Tata Steel UK has confirmed that it does not expect to be able to pay contributions needed to close the deficit.

The trustee added that the deficit estimate had increased sharply because the actuary has to take into account the fact that Tata Steel UK might no longer be able to access extra capital from the wider Tata Steel group, which is based in India.