Essar Steel Algoma granted pension funding relief

A major employer in Sault Ste. Marie has been granted relief from making full contributions to its employee pension plan.

Essar Steel Algoma says the Ontario government has approved its plan to take 10 years to fully fund the pension.

Essar said it needed a break on payments because historically low interest rates have diminished the returns for the plan.

The application for pension relief required the support of employees and retirees.

"This new funding formula provides Essar Steel Algoma with greater predictability in the near term and more manageable payments over the long term," said Essar Steel Algoma CEO Kalyan Ghosh in a press release Monday.