Algoma Steel made $85 million in contributions to its pension plans in December to improve the funded position of the plans.
The contribution will also generate higher returns on the pension plans’ assets as compared to cash balances.
This contribution represents a prepayment of $60 million towards expected 2007 funding requirements and a $25 million special payment.
As a result of the prepayment, the company does not expect to resume monthly pension contributions until January 2008.
Contributions will be split between its three pension plans, with $49.8 million contributed to the Hourly Plan, $15.1 million to the Salary Plan and $20.1 million to the Wrap Plan(for pre-2002 pensioners).
Algoma made a similar prepayment in December 2005.
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