Fairfield-Echo.com

WEST CHESTER TWP. — AK Steel Corp. will make another early $75 million contribution to its pension trust fund during the second quarter.

The company's board of directors authorized the funds Tuesday, April 22. AK officials said the amount will fulfill the company's funding requirement for 2008.

The company's profits climbed 60 percent in the first quarter 2008 largely due to dropping the $15.1 million pension charge from the year before. Pension and employee benefit charges were substantially reduced following the Feb. 21 district court approval of a $663 million settlement involving AK Steel retiree benefits.

Under the agreement, AK Steel transferred its health care obligations for Armco and AK Steel retirees to a Voluntary Employees Beneficiary Association trust.

The plan covers approximately 4,900 retirees and their families, according to Michael Bailey, president of the Concerned Armco/AK Retired Employees organization.

Under terms of the agreement, AK Steel will contribute $663 million to the VEBA over a four-year period, and transfer all of its retiree health care obligations to the trust. The trust will be managed by the retirees' designees.

The agreement had the effect of lowering the company's liabilities by $1 billion, said Albert Ferrara, AK's vice president of finance and chief financial officer.

Following the $75 million contribution, AK Steel will have put more than $750 million in pension fund since 2005.

Contact this reporter at (513) 705-2843 or jlander@coxohio.com.

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