Eligible employees, including certain employees in foreign countries, participate in the following Company-sponsored plans: Bargaining Unit Pension Plan ("Bargaining Plan"), Supplemental Pension Plan ("Supplemental Plan"), UK Pension Scheme ("Pension Scheme"), Mexico Pension Plan, and Postretirement Plans made up of the Company's Bargaining Unit Welfare Benefit Plan for Retirees and Welfare Benefit Plan for Retirees. The Retirement Plan ("Salaried Plan") was annuitized with the purchase of a group annuity contract on May 15, 2024.

On October 29, 2021, the United Steelworkers ("USW") Local 1123 voted to ratify a new four-year contract (the “Contract”). The Contract is in effect until September 27, 2025 and resulted in several changes to the Bargaining Plan which increased the pension liability by $14.2 million in 2021. These plan amendments were recognized in other comprehensive income (loss) in 2021 and will be amortized as part of the pension net periodic benefit cost in future periods. The main change that drove the increase in the pension liability was the addition of a full lump sum form of payment for participants commencing benefits on or after January 1, 2022. In addition, the plan is now closed to new entrants effective January 1, 2022.

On July 7, 2022, the Company entered into an agreement with The Prudential Insurance Company of America ("Prudential") to purchase an irrevocable group annuity contract and transfer approximately $256.2 million of pension obligations under the Bargaining Plan. In connection with the agreement, Prudential began paying benefits under the group annuity contract as of October 1, 2022 for a specified group of approximately 1,900 participants and beneficiaries who previously received payments from the Bargaining Plan. Benefits payable to these participants and beneficiaries were not reduced as a result of this transaction. Plan participants and beneficiaries not included in the transaction remain in the Bargaining Plan. The Company recorded a non-cash settlement gain of approximately $2.7 million in the third quarter of 2022 related to this partial plan annuitization. This settlement is a significant event which also required remeasurement of the Bargaining Plan during the third quarter of 2022. The transaction was funded directly by the assets of the Bargaining Plan and required no cash contribution from the Company.

In the twelve months ended December 31, 2024, the Company contributed a total of $42.8 million in pension contributions, most of which related to the Bargaining Plan. The timing and amount of future required pension contributions is significantly affected by asset returns and actuarial assumptions. Based on the results of the December 31, 2024 pension calculations, the Company estimates total required Bargaining Plan contributions of approximately $65.0 million in 2025. In January 2025, the Company contributed an additional $5.3 million to the Bargaining Plan. Future required pension contribution timing and amounts are subject to significant change based on future investment performance, Company estimates and actuarial assumptions, as well as future funding laws.

During the fourth quarter of 2021, the Company's Board of Directors approved the termination of the Salaried Plan. Participants were notified in January 2022 and the plan was terminated effective March 31, 2022, subject to regulatory approval which was received in the fourth quarter of 2023. On May 15, 2024, the Company entered into an agreement to purchase a group annuity contract from Prudential in connection with the annuitization of the Salaried Plan. The Salaried Plan annuitization settled approximately $121 million of the Company’s remaining U.S. pension obligations. Prudential began future benefit payments under the group annuity contract starting August 1, 2024 for all remaining participants in the Salaried Plan. Benefits payable to Salaried Plan participants were not reduced as a result of the annuitization. The group annuity contract was purchased using existing assets of the Salaried Plan and required no cash contribution from the Company. At the date of the annuitization of the Salaried Plan, the Company transferred the Salaried Plan assets and liabilities to Prudential and recorded a non-cash loss of approximately $1.0 million. As of December 31, 2024, the Company has no remaining liabilities or obligations as it relates to the Salaried Plan.

The following table sets forth the change in benefit obligation for the pension and postretirement benefit plans as of December 31, 2024:


	Pension
	United States of America									United Kingdom			Mexico
Change in benefit obligation:	Bargaining Plan			Salaried Plan			Supplemental Plan			Pension Scheme			Pension Plan			Total Pension			Postretirement Plans
Benefit obligation at the beginning of year	$	490.9		$	124.0		$	16.5		$	56.7		$	0.5		$	688.6		$	84.9
Service cost		8.9			0.3			—			—			—			9.2			0.6
Interest cost		25.4			2.3			0.9			2.5			—			31.1			4.3
Actuarial (gains) losses		(16.9	)		(1.5	)		(0.7	)		(5.1	)		(0.4	)		(24.6	)		(0.2	)
Benefits paid		(36.7	)		(6.9	)		(0.6	)		(4.0	)		—			(48.2	)		(9.5	)
Settlements		—			(118.2	)		—			—			—			(118.2	)		—
Foreign currency translation adjustment		—			—			—			(0.8	)		—			(0.8	)		—
Benefit obligation at the end of year	$	471.6		$	—		$	16.1		$	49.3		$	0.1		$	537.1		$	80.1

Significant actuarial gains related to changes in benefit obligations for 2024 primarily resulted from an increase in discount rates. Significant settlements were a result of the Salaried Plan annuity purchase as well as lump sum payments during 2024.

The following table sets forth the change in benefit obligation for the pension and postretirement benefit plans as of December 31, 2023:


	Pension
	United States of America									United Kingdom			Mexico
Change in benefit obligation:	Bargaining Plan			Salaried Plan			Supplemental Plan			Pension Scheme			Pension Plan		Total Pension			Postretirement Plans
Benefit obligation at the beginning of year	$	474.9		$	128.1		$	15.5		$	47.7		$	0.4	$	666.6		$	87.4
Service cost		9.5			0.9			—			—			—		10.4			0.7
Interest cost		25.9			6.7			0.9			2.3			—		35.8			4.7
Actuarial (gains) losses		19.1			5.7			0.7			7.3			—		32.8			3.8
Benefits paid		(38.5	)		(11.4	)		(0.6	)		(3.3	)		—		(53.8	)		(11.7	)
Settlements		—			(6.0	)		—			—			—		(6.0	)		—
Foreign currency translation adjustment		—			—			—			2.7			0.1		2.8			—
Benefit obligation at the end of year	$	490.9		$	124.0		$	16.5		$	56.7		$	0.5	$	688.6		$	84.9

Significant actuarial losses related to changes in benefit obligations for 2023 primarily resulted from a decrease in discount rates.

The following table sets forth the change in plan assets and funded status for the pension and postretirement benefit plan as of December 31, 2024:


	Pension
	United States of America									United Kingdom			Mexico
Change in plan assets:	Bargaining Plan			Salaried Plan			Supplemental Plan			Pension Scheme			Pension Plan		Total Pension			Postretirement Plans
Fair value of plan assets at the beginning of year	$	334.7		$	129.6		$	—		$	61.0		$	0.3	$	525.6		$	53.8
Actual return on plan assets		2.8			(0.9	)		—			(3.4	)		—		(1.5	)		2.7
Company contributions / payments		40.9			(3.6	)		0.6			1.9			—		39.8			2.4
Benefits paid		(36.7	)		(6.9	)		(0.6	)		(4.0	)		—		(48.2	)		(9.5	)
Settlements		—			(118.2	)		—			—			—		(118.2	)		—
Foreign currency translation adjustment		—			—			—			(0.9	)		—		(0.9	)		—
Fair value of plan assets at end of year	$	341.7		$	—		$	—		$	54.6		$	0.3	$	396.6		$	49.4
Funded status at end of year	$	(129.9	)	$	—		$	(16.1	)	$	5.3		$	0.2	$	(140.5	)	$	(30.7	)

The following table sets forth the change in plan assets and funded status for the pension and postretirement benefit plan as of December 31, 2023:


	Pension
	United States of America									United Kingdom			Mexico
Change in plan assets:	Bargaining Plan			Salaried Plan			Supplemental Plan			Pension Scheme			Pension Plan			Total Pension			Postretirement Plans
Fair value of plan assets at the beginning of year	$	353.9		$	137.7		$	—		$	57.5		$	0.3		$	549.4		$	59.2
Actual return on plan assets		19.3			9.3			—			2.5			—			31.1			5.3
Company contributions / payments		—			—			0.6			1.2			—			1.8			1.0
Benefits paid		(38.5	)		(11.4	)		(0.6	)		(3.3	)		—			(53.8	)		(11.7	)
Settlements		—			(6.0	)		—			—			—			(6.0	)		—
Foreign currency translation adjustment		—			—			—			3.1			—			3.1			—
Fair value of plan assets at end of year	$	334.7		$	129.6		$	—		$	61.0		$	0.3		$	525.6		$	53.8
Funded status at end of year	$	(156.2	)	$	5.6		$	(16.5	)	$	4.3		$	(0.2	)	$	(163.0	)	$	(31.1	)

The Bargaining Plan, Supplemental Plan and the recently terminated Salaried Plan have a provision that permits employees to elect to receive their pension benefits in a lump sum upon retirement. The Company's accounting policy is to recognize settlements during the quarter in which it is projected that the costs of all settlements during the year will be greater than the sum of the service cost and interest cost components.

In the first quarter of 2024, the cumulative cost of all lump sum payments was expected to exceed the sum of the service cost and interest cost components of net periodic pension cost for the Salaried Plan. As a result, the Company completed a full remeasurement of its pension obligations and plan assets associated with the Salaried Plan during the first quarter of 2024. On May 1, 2024, in advance of the annuitization of the Salaried plan and upon the election of certain participants, the Company made $20.8 million in lump sum payments. The Company also remeasured the Salaried Plan ahead of the annuitization on May 15, 2024.

In the first quarter of 2023, in anticipation of receiving the regulatory approval to move forward with the plan termination process, the cumulative costs of all lump sum payments and other settlements were projected to exceed the sum of the service cost and interest cost components of net periodic pension cost during 2023 for the Salaried Plan. Ultimately, these costs did not exceed this threshold for the Salaried Plan during 2023. The Salaried Plan's pension obligations and plan assets were remeasured during each quarter of 2023.

For the years ended December 31, 2024 and 2023, the administrative expenses for all plans totaled $3.3 million and $2.9 million, respectively. These expenses are included in benefits paid in the tables above.

The accumulated benefit obligation at December 31, 2024 exceeded the fair value of plan assets for the Bargaining Plan and the unfunded Supplemental Plan. For the Bargaining Plan and Supplemental Plan, the accumulated benefit obligation was $467.1 million and $16.1 million, respectively, as of December 31, 2024.

The accumulated benefit obligation for all pension plans was $532.5 million and $683.7 million as of December 31, 2024 and 2023, respectively.

Amounts recognized on the balance sheet at December 31, 2024 for the Company's pension and postretirement benefit plans include:


	Pension
	United States of America								United Kingdom		Mexico
	Bargaining Plan			Salaried Plan		Supplemental Plan			Pension Scheme		Pension Plan		Total Pension			Postretirement Plans
Non-current assets	$	—		$	—	$	—		$	5.3	$	0.2	$	5.5		$	—
Current liabilities		(64.7	)		—		(0.6	)		—		—		(65.3	)		(1.2	)
Non-current liabilities		(65.2	)		—		(15.5	)		—		—		(80.7	)		(29.5	)
Total	$	(129.9	)	$	—	$	(16.1	)	$	5.3	$	0.2	$	(140.5	)	$	(30.7	)

Amounts recognized on the balance sheet at December 31, 2023 for the Company's pension and postretirement benefit plans include:


	Pension
	United States of America								United Kingdom		Mexico
	Bargaining Plan			Salaried Plan		Supplemental Plan			Pension Scheme		Pension Plan			Total Pension			Postretirement Plans
Non-current assets	$	—		$	5.6	$	—		$	4.3	$	—		$	9.9		$	—
Current liabilities		(41.7	)		—		(0.6	)		—		—			(42.3	)		(1.2	)
Non-current liabilities		(114.5	)		—		(15.9	)		—		(0.2	)		(130.6	)		(29.9	)
Total	$	(156.2	)	$	5.6	$	(16.5	)	$	4.3	$	(0.2	)	$	(163.0	)	$	(31.1	)

Included in accumulated other comprehensive income (loss) at December 31, 2024 were the following before-tax amounts that had not been recognized in net periodic benefit cost:


	Pension
	United States of America						United Kingdom		Mexico
	Bargaining Plan		Salaried Plan		Supplemental Plan		Pension Scheme		Pension Plan		Total Pension		Postretirement Plans
Unrecognized prior service (benefit) cost	$	9.9	$	—	$	—	$	0.4	$	—	$	10.3	$	(38.0	)

Included in accumulated other comprehensive income (loss) at December 31, 2023 were the following before-tax amounts that had not been recognized in net periodic benefit cost:


	Pension
	United States of America						United Kingdom		Mexico
	Bargaining Plan		Salaried Plan		Supplemental Plan		Pension Scheme		Pension Plan		Total Pension		Postretirement Plans
Unrecognized prior service (benefit) cost	$	11.1	$	—	$	—	$	0.5	$	—	$	11.6	$	(44.0	)

The weighted average assumptions used in determining benefit cost for the years ended December 31, 2024 and 2023 were as follows:

The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolios. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance.

For measurement purposes, the weighted-average annual rate of increase in the per capita cost ("health care cost trend rate") was not applicable for the years 2024 and 2023.

The components of net periodic benefit cost (income) for the year ended December 31, 2024 were as follows:


	Pension
	United States of America									United Kingdom			Mexico
Components of net periodic benefit cost (income):	Bargaining Plan			Salaried Plan			Supplemental Plan			Pension Scheme			Pension Plan			Total Pension			Postretirement Plans
Service cost	$	8.9		$	0.3		$	—		$	—		$	—		$	9.2		$	0.6
Interest cost		25.4			2.3			0.9			2.5			—			31.1			4.3
Expected return on plan assets		(28.0	)		(2.4	)		—			(3.1	)		—			(33.5	)		(2.9	)
Amortization of prior service cost		1.2			—			—			—			—			1.2			(5.9	)
Settlements		—			—			—			—			—			—			—
Net remeasurement losses (gains)		8.3			1.8			(0.7	)		1.4			(0.4	)		10.4			(0.1	)
Net Periodic Benefit Cost (Income)	$	15.8		$	2.0		$	0.2		$	0.8		$	(0.4	)	$	18.4		$	(4.0	)

The components of net periodic benefit cost (income) for the year ended December 31, 2023 were as follows:


	Pension
	United States of America								United Kingdom			Mexico
Components of net periodic benefit cost (income):	Bargaining Plan			Salaried Plan			Supplemental Plan		Pension Scheme			Pension Plan		Total Pension			Postretirement Plans
Service cost	$	9.5		$	0.9		$	—	$	—		$	—	$	10.4		$	0.7
Interest cost		25.9			6.7			0.9		2.3			—		35.8			4.7
Expected return on plan assets		(26.9	)		(7.5	)		—		(2.7	)		—		(37.1	)		(3.4	)
Amortization of prior service cost		1.3			—			—		—			—		1.3			(6.0	)
Settlements		—			—			—		—			—		—			—
Net remeasurement losses (gains)		26.6			4.0			0.6		7.5			—		38.7			1.9
Net Periodic Benefit Cost (Income)	$	36.4		$	4.1		$	1.5	$	7.1		$	—	$	49.1		$	(2.1	)

The components of net periodic benefit cost (income) for the year ended December 31, 2022 were as follows:


	Pension
	United States of America									United Kingdom			Mexico
Components of net periodic benefit cost (income):	Bargaining Plan			Salaried Plan			Supplemental Plan			Pension Scheme			Pension Plan		Total Pension			Postretirement Plans
Service cost	$	13.9		$	0.3		$	—		$	—		$	—	$	14.2		$	1.1
Interest cost		31.1			6.5			0.7			1.3			—		39.6			3.4
Expected return on plan assets		(46.7	)		(5.0	)		—			(3.2	)		—		(54.9	)		(3.4	)
Amortization of prior service cost		1.3			—			—			—			—		1.3			(6.0	)
Curtailment		(2.7	)		—			—			—			—		(2.7	)		—
Net remeasurement losses (gains)		(37.2	)		6.9			(6.5	)		15.9			—		(20.9	)		(11.8	)
Net Periodic Benefit Cost (Income)	$	(40.3	)	$	8.7		$	(5.8	)	$	14.0		$	—	$	(23.4	)	$	(16.7	)

Metallus recognizes its overall responsibility to ensure that the assets of its various defined benefit pension plans are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. Preservation of capital is important; however, Metallus also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the pension funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolios is based on expected rates of return for various asset classes, as well as historical asset class and fund performance.

The target allocations for each plan's assets are as follows:


	Pension
	United States of America					United Kingdom			Mexico
Target Allocations:	Bargaining Plan			Salaried Plan	Supplemental Plan	Pension Scheme			Pension Plan			Weighted Average Pension			Postretirement Plans
Equity securities		38.0	%	n/a	n/a		15.8	%		—			34.9	%		26.0	%
Debt securities		34.0	%	n/a	n/a		68.5	%		100.0	%		38.8	%		67.0	%
Other investments		28.0	%	n/a	n/a		15.7	%		—			26.3	%		7.0	%

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date ("exit price"). The inputs used to measure fair value are classified into the following hierarchy:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.

The following table presents the fair value hierarchy for those investments of the Company's pension assets measured at fair value on a recurring basis as of December 31, 2024:


	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	12.6	$	3.3	$	9.3	$	—
U.S government and agency securities		36.3		36.3		—		—
Mutual fund - equities		80.9		80.9		—		—
Mutual fund - fixed income		12.5		12.5		—		—
Mutual fund - tactical tilt		10.8		10.8		—		—
Exchange traded funds		0.5		0.5		—		—
Real estate		29.7		—		—		29.7
Private debt		22.2		—		—		22.2
Total Assets in the fair value hierarchy	$	205.5	$	144.3	$	9.3	$	51.9
Assets measured at net asset value (1)		191.1		—		—		—
Total Assets	$	396.6	$	144.3	$	9.3	$	51.9

(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and hedge funds. As of December 31, 2024, these assets are redeemable at net asset value within 90 days, except for certain private investments with an estimated liquidation period of one to ten years.

The following table presents the fair value hierarchy for those investments of the Company's pension assets measured at fair value on a recurring basis as of December 31, 2023:


	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	5.8	$	—	$	5.8	$	—
U.S government and agency securities		59.8		50.7		9.1		—
Corporate bonds		39.8		—		39.8		—
Mutual fund - equities		83.3		83.3		—		—
Mutual fund - fixed income		12.2		12.2		—		—
Mutual fund - tactical tilt		10.6		10.6		—		—
Real estate		14.1		—		—		14.1
Private debt		25.7		—		—		25.7
Other		0.6		—		0.6		—
Total Assets in the fair value hierarchy	$	251.9	$	156.8	$	55.3	$	39.8
Assets measured at net asset value (1)		273.7		—		—		—
Total Assets	$	525.6	$	156.8	$	55.3	$	39.8

(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and hedge funds. As of December 31, 2023, these assets were redeemable at net asset value within 90 days, except for certain private investments with an estimated liquidation period of one to ten years.

The following table sets forth a summary of changes in the fair value of the Company's pension plan level three assets for the year ended December 31, 2024:


	Level 3 assets only
	2024
Balance at the beginning of year	$	39.8
Transfers in and/or out of Level 3		—
Actual return on plan assets:
Realized gain (loss)		(0.4	)
Net unrealized gain (loss)		3.5
Purchases, sales, issuances and settlements:
Purchases		15.5
Sales		(6.5	)
Balance at the end of year	$	51.9

The following table presents the fair value hierarchy for those investments of the Company's postretirement assets measured at fair value on a recurring basis as of December 31, 2024:


	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	3.6	$	3.6	$	—	$	—
Mutual fund - equities		11.9		11.9		—		—
Mutual fund - fixed income		6.6		6.6		—		—
Mutual fund - real assets		0.9		0.9		—		—
Mutual fund - tactical tilt		2.3		2.3		—		—
Total Assets in the fair value hierarchy	$	25.3	$	25.3	$	—	$	—
Assets measured at net asset value (1)		24.1		—		—		—
Total Assets	$	49.4	$	25.3	$	—	$	—

(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities. As of December 31, 2024, these assets are redeemable at net asset value on a daily basis.

The following table presents the fair value hierarchy for those investments of the Company's postretirement assets measured at fair value on a recurring basis as of December 31, 2023:


	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	2.2	$	2.2	$	—	$	—
Mutual fund - equities		13.5		13.5		—		—
Mutual fund - fixed income		7.3		7.3		—		—
Mutual fund - real assets		1.1		1.1		—		—
Mutual fund - tactical tilt		2.5		2.5		—		—
Total Assets in the fair value hierarchy	$	26.6	$	26.6	$	—	$	—
Assets measured at net asset value (1)		27.2		—		—		—
Total Assets	$	53.8	$	26.6	$	—	$	—

(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities, fixed income securities, and limited partnerships. As of December 31, 2023, these assets are redeemable at net asset value on a daily basis.

Future benefit payments are expected to be as follows:


	Pension
	United States of America						United Kingdom		Mexico
Benefit Payments:	Bargaining Plan		Salaried Plan (1)		Supplemental Plan		Pension Scheme		Pension Plan		Total Pension		Postretirement Plans
2025	$	43.5	$	—	$	0.6	$	2.8	$	—	$	46.9	$	8.8
2026		43.2		—		0.6		2.7		—		46.5		8.3
2027		47.2		—		13.0		3.2		—		63.4		7.9
2028		46.4		—		0.5		3.3		—		50.2		7.5
2029		44.3		—		0.5		3.5		—		48.3		7.2
2030-2034		196.4		—		2.0		19.5		—		217.9		32.4

The Company expects to make required contributions and payments to its pension and postretirement plans of $68.5 million in the next 12 months and $103.3 million from 2026 through 2034. The timing and amount of future required pension contributions is significantly affected by asset returns and actuarial assumptions.

(1) As of August 1, 2024, Prudential assumed the responsibility for all future Salaried Plan benefit payments as a result of the annuitization that occurred.

The Company recorded expense primarily related to employer matching and non-discretionary contributions to these defined contribution plans of $3.1 million in 2024, $3.4 million in 2023, and $3.3 million in 2022.