UNISON members working for EDF Energy have today (Thursday) overwhelmingly backed a new pension deal negotiated by the union.
The deal provides new entrants access to a defined benefit pension scheme – something almost unheard of in today’s economy, says the union.
The agreement – covering some 13,000 employees – is the result of months of negotiations with unions. It relates to all present workers at EDF Energy and also all future entrants.
UNISON General Secretary Dave Prentis said: “This unique deal means existing members of staff will retain their final salary scheme, and the great news is that it also extends to new entrants. Future workers at EDF Energy will enjoy some of the best pensions in the private sector.
“It is rare in this economic climate to secure such a good pension scheme for private sector workers. These employees include those on modest salaries working in call centres dealing with customers – many of whom are women working part-time. We are pleased to have played a key role in these negotiations and they reflect the positive working relations the union has with EDF Energy.”
Notes to editors:
79 per cent of members balloted voted and 97 per cent supported the deal.
The key highlights of the agreement are:
• The introduction of a pensionable salary cap of one per cent that will apply only on basic pay above £65,000 (this threshold will be linked to salary increases so will rise).
• Thousands of workers earn below £65,000 and therefore will not be subject to any cap so will not lose out.
• New entrants will have access to a new Career Average Revalued Earnings (CARE) scheme with a 1/60th accrual rate.
• Some existing employees will be rolled into the new CARE scheme automatically, but they will have the chance to remain in the present final salary scheme.
• The deal would save EDF around £270m from the present deficit and about £20m in annual funding costs.
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