The deal between the firm, the trustees of the British Steel Pension Scheme and regulators means that Tata no longer has to stand behind its costly defined benefit fund.
Tata had claimed that unless it could detach itself from the scheme, its British business would have gone under within 12 months.
As it is, removing the “poison pill” of the pension scheme clears the way for Tata to merge its steel business with that of German rival ThyssenKrupp.
British companies have injected hundreds of billions of pounds into their legacy defined benefit pension funds since 2001 to try to plug their deficits, only to watch in horror as they continued to increase.
How long will it be before other major employers come to the same conclusion as Tata Steel and say that they need to separate themselves from their schemes to survive?
As many of you know, I have been absent for the past few months due to the injuries I sustained in the London Bridge terror attack.
Many thanks to my family, friends, colleagues and readers who contacted me with kind messages of support during my convalescence.
It is truly appreciated. A special thanks to colleague Harvey Jones, who did a terrific job in my absence.