Pension Funding Status – Salaried Plans

 

As At December 31

(Note: Valuations as reported in the latest Actuarial Valuation Reports filed by Stelco with the FSCO in September 2005) –(Note 3)

 

 

 

Stelco Inc.

Hamilton (1)

Stelco Inc.

LESCo (1)

Stelwire (2)

Stelpipe (2)

Welland Pipe (2)

2004

2003

2002

2004

2003

2002

2004

2003·

2001

2004

2003·

2001

2004

2003·

2001

 

Going Concern Funded Ratio

 

 

96.7%

 

100%

 

100%

 

91.5%

 

95.3%

 

99.6%

 

100%

 

100%·

 

100%

 

100%

 

100%·

 

100%

 

100%

 

100%·

 

100%

 

Wind-Up Solvency

Transfer Ratio

 

 

79.8%

 

80.5%

 

80.8%

 

70.5%

 

70.6%

 

70.5%

 

83.0%

 

85.8%·

 

97.2%

 

81.7%

 

84%·

 

96.6%

 

 

86.9%

 

89%·

 

99.1%

 

 

· Dec. 31 2003 funded and transfer ratios shown for Stelwire, Stelpipe, and Welland Pipe are based on preliminary actuarial results and not based on filed actuarial valuations

 

 

Notes:

 

(1)      Actuarial Valuation Reports for Stelco Inc. Hamilton, and Stelco Inc. LESCo are completed on an annual basis for filing with the Financial Services Commission of Ontario as per section 5.1 of the regulations to the Ontario Pension Benefits Act. 

 

(2)      Actuarial Valuation Reports for Stelwire, Stelpipe, and Welland are completed for filing with the Financial Services Commission of Ontario every three years in accordance with the minimum requirements of the Ontario Pension Benefits Act.  Thus Stelco provided SSPO with “Preliminary Valuation Results” for the year ended December 31, 2003.

 

(3)      All Actuarial Valuation Reports must be filed with the Financial Services Commission Of Ontario (FSCO) by September 30th of the year following the December 31st evaluation.

 

Definitions:

 

Going Concern Funded Ratio:  Based on the assumption the plan is ongoing, will not be subject to restructuring changes, and will not be wound-up. 

 

Wind-Up Solvency Transfer Ratio:  Represents the ratio of solvency assets to solvency liabilities.  The assets and liabilities are valued as at a particular day based on the assumption that the plan would be wound-up on that day, and all monies would have to be paid at once.  In the event of a wind-up the value of your pension would be in proportion to value of the Transfer Ratio.