A FIRM originally formed to administer rail workers' pensions has bought a company which carries out a similar role for former electricity board workers.

Pensions administrator RPMI, based in Darlington, yesterday announced it had bought Electricity Pensions Administration Limited (EPAL) from E.ON UK plc.

The midlands based firm originally set up to administer pensions for workers at the then publicly owned electricity board is now responsible for 14 different schemes for industry workers following the privatisation of the utility.

It includes E.ON's scheme, which has 30,000 members.

As a result of the acquisition around 30 EPAL workers will join around more than 250 staff, predominantly Darlington based, already employed by RPMI, although they will remain at their current location in Coventry.

RPMI, which has been based in Darlington for 45 years since it was established to administer British Rail pensions, looks after around 500,000 people's retirement funds.

Chris Hitchen, chief executive of RPMI, which also has a London office, said: "This is a great

opportunity for RPMI to grow its business.

"The EPAL business and staff have a very similar culture to that of RPMI.

"This activity allows us not only to grow our client base, but also to increase our range of expertise and provides an additional location from which we can continue our sustained growth into the future."