Steely determination protects final-salary pensions at Corus

The final-salary pension scheme for staff at steel manufacturer Corus has been preserved following negotiations with unions.

Under an agreement reached this month, employee contributions will increase from 5% to 6% of salary, while the employer will end its “contributions holiday” from April and increase its contributions by between 10% and 12% above their previous level.

Furthermore, the employer’s contribution will never fall below that of the employee.

The scheme’s future is now secure for its 23,000 active members, 50,000 deferred members and 100,000 pensioners, although a working group is to review arrangements for new entrants. Arrangement for early retirement are also to be amended.

Describing the retention of the final-salary scheme as the “number one objective”, GMB general union national officer Keith Hazlewood said: “This new package secures this objective in a fund that is currently in surplus.” Both sides have agreed that, if the fund is sufficiently in surplus in future, the contribution levels of the employer and the employees will be equally reduced.

Michael Leahy, general secretary of the Community union, said the result was “good news for the workforce and for future employees”.

The unions are currently consulting their members on the deal.