Lafarge promises 'massive' boost to employee pensions

With the pensions crisis splashed across the front pages of national newspapers, Lafarge has stated that it is standing by its final-salary pension scheme and making a "massive" increase in employer contributions.
Confirmation of Lafarge's continued support for the scheme came as part of recent pay and conditions negotiations with unions representing workers in the concrete products division.
The company said it will continue to offer a final-pay pension despite the fact that the national trend is for such schemes to be closed to new members. Only one in four final-salary schemes are now said to be open to new members.
Following an actuarial valuation, Lafarge and its UK pension plan trustees have agreed a two-prong strategy to work towards restoring full funding to the scheme within 10 years.
Current funding is put at about 90%.
In the first instance, the company has promised a huge increase in employer contributions. It is also implementing a revised investment strategy that is expected to improve the funding level.
Lafarge said it will pay £7,000 for each £1,000 an average employee contributes annually.
In the UK, the Lafarge cement, concrete, aggregates, roofing, and plasterboard operations employ more than 4,500 people. The pension scheme has 41,000 members.