EDF Energy pension proposals |
EDF Energy Pension Proposals
UNISON - The union for workers in EDF Energy
You will have been notified that the joint trade unions have agreed to consult members on a proposed pension agreement.
Please use this survey monkey link to feedback following the TU consultation sessions.
At the outset UNISON made clear its two main objectives from these negotiations were as follows;
• A good defined benefit (DB) pension offer for new starters as well as existing workers must be retained
• Our members who are on relatively low wages in the business, should not shoulder the burden of any reform proposals and should be protected going forward.
We believe this has been achieved and the present offer is a substantial improvement on the original company proposal. So we are now engaged in consultations with you as members to ensure you are content with the offer and willing to support it.
The key highlights of the proposed agreement are;
The creation of a 1% pensionable salary cap to apply only to basic pay above pay point 35 on the Nuclear Generation NJC scale currently equivalent to £65,000.
Most of our members in customer earn well below the £65,000 basic salary so will not be affected. The cap will rise in line with the relevant NJC pay point.
The introduction of a new CARE (Career Average Re-valued Earnings) DB pension scheme for new entrants/starters with an opening accrual rate of 1/60th (which is an improvement over the current 1/80th in EEPS) This accrual rate will be subject to joint review with the four trade unions to ensure costs are being managed. Member contributions will be fixed at 5%.
The CARE scheme as opposed to a simple final salary pension scheme is now used extensively and in particular within both the NHS and Local Government.
This means we will have secured the right for all new entrants to have access to a good DB pension
The new CARE scheme will become the default scheme and all EEPS members will enrolled into it, unless they choose to remain in the existing EEPS scheme .
Existing EEPS members will have a choice to either transfer over to the new CARE scheme or remain in EEPS. They will need to weigh up the pros and cons of doing so.
Although the new CARE scheme may provide an improved pension offer for many of our members the normal pension age applicable in this scheme will change from 65 (EEPS) to the applicable state pension age for the individual. Past service in EEPS will be protected and the normal pension age applicable in EEPS will apply for those years already banked.
The pensionable salary cap will apply to all EDF Energy DB pension schemes, including EEGS starting from the same threshold. The cap only applies to basic pay and not other pensionable allowances.
Please let us have your views by answering this short survey.
You will have been notified that the joint trade unions have agreed to consult members on a proposed pension agreement.
Please use this survey monkey link to feedback following the TU consultation sessions.
At the outset UNISON made clear its two main objectives from these negotiations were as follows;
• A good defined benefit (DB) pension offer for new starters as well as existing workers must be retained
• Our members who are on relatively low wages in the business, should not shoulder the burden of any reform proposals and should be protected going forward.
We believe this has been achieved and the present offer is a substantial improvement on the original company proposal. So we are now engaged in consultations with you as members to ensure you are content with the offer and willing to support it.
The key highlights of the proposed agreement are;
The creation of a 1% pensionable salary cap to apply only to basic pay above pay point 35 on the Nuclear Generation NJC scale currently equivalent to £65,000.
Most of our members in customer earn well below the £65,000 basic salary so will not be affected. The cap will rise in line with the relevant NJC pay point.
The introduction of a new CARE (Career Average Re-valued Earnings) DB pension scheme for new entrants/starters with an opening accrual rate of 1/60th (which is an improvement over the current 1/80th in EEPS) This accrual rate will be subject to joint review with the four trade unions to ensure costs are being managed. Member contributions will be fixed at 5%.
The CARE scheme as opposed to a simple final salary pension scheme is now used extensively and in particular within both the NHS and Local Government.
This means we will have secured the right for all new entrants to have access to a good DB pension
The new CARE scheme will become the default scheme and all EEPS members will enrolled into it, unless they choose to remain in the existing EEPS scheme .
Existing EEPS members will have a choice to either transfer over to the new CARE scheme or remain in EEPS. They will need to weigh up the pros and cons of doing so.
Although the new CARE scheme may provide an improved pension offer for many of our members the normal pension age applicable in this scheme will change from 65 (EEPS) to the applicable state pension age for the individual. Past service in EEPS will be protected and the normal pension age applicable in EEPS will apply for those years already banked.
The pensionable salary cap will apply to all EDF Energy DB pension schemes, including EEGS starting from the same threshold. The cap only applies to basic pay and not other pensionable allowances.
Please let us have your views by answering this short survey.