Corus reports pensions surplus under FRS 17
Corus, the steel producer, this week became one of the few FTSE-100 companies to report a pensions surplus under the new highly contentious accounting standard, FRS 17.
The steel producer formed by merging British Steel with the Netherlands’ Koninklijke Hoogoverns, has disclosed a pension surplus of £865m, one of the largest yet under the new pensions accounting rule.
The company’s healthy pensions scheme has been attributed to the comparatively low life expectancy of the former work force, and a low dependency on equities while many companies have been hit hard by the fall in world stock markets.
Last year the group contributed £49m compared with £106m the previous year. But with its current surplus Corus could now enjoy a contributions break for several years.