Pensions boost for EDF staff

POWER business EDF Energy, behind the old London Electricity and Seeboard, is bucking the widespread trend to close final-salary pension schemes and launching a new one for its 11,300 staff.

While employers in droves are closing these guaranteed pensions to new employees, EDF said its new scheme was particularly aimed at 3,000 younger employees currently with no pension arrangements.

The new scheme will also replace four existing pension schemes, including two cheaper defined contribution or 'money purchase' schemes, which will stop taking new money. Chief executive Vincent de Rivaz said: 'When reviewing our pension arrangements we decided that we should look at a bigger picture than just mid to short-term cost issues.'

No employee would be worse off under the new scheme, he pledged. The scheme shifted risk from employees to employer and would help boost staff loyalty.

The 5,000 employees who are members of the separate Electricity Supply Pension Scheme are unaffected by the new arrangements.