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Corus in review of pensions

CORUS may close its final salary pension scheme to new staff after a review of costs.

The steel giant, which has 23,000 active members in the British Steel Pension Scheme, has set up a working group with trade unions to examine pension options for new entrants over the next year.

A spokeswoman said: 'Closing the final salary scheme to new entrants is one of the options that will be looked at.

A lot of companies have already announced this move.' Existing members of the pension fund have already agreed to raise their contributions from 5 to 6 per cent.

Corus wants to slash the cost of providing pension benefits by 20 per cent. The pension fund has a £53 million surplus, but has 53,000 deferred members and 100,000 pensioners to cover.

The company will resume payments to its pension fund in April after a three-year holiday from contributions.