Afternoon:
9°c
Royal Bank of Scotland today caused outrage with plans to cap the pensions of more than 60,000 staff.
The bank, 70%-owned by the taxpayer after its near-collapse, said the proposed changes include capping the amount of salary increases that are pensionable to 2% a year or the rate of inflation, whichever is lower.
It also involves cutting the lump sum payable on early retirement. It is thought it will save RBS £100 million a year.
The Unite union said it was a “body blow” to staff.
National officer Rob MacGregor said: “Against the backdrop of Sir Fred Goodwin's bumper pension, these planned changes add insult to injury to workers paying the price for a crisis for which they hold no responsibility.”
Neil Roden, head of human resources at RBS — which has an £800 million pension deficit — said: “The rising cost of pension provision is an issue for RBS and for all companies at this time. This is an expensive scheme for our shareholders to fund and a generous one in comparison to the market.
“The reforms seek to strike a balance between reducing the costs and future liabilities of the scheme, with doing what we can to protect the welfare of existing staff and scheme members.”
Reader views (3)
Dont worry bankers you will find a way, just read the small print.
- Mr S.Port, London, 26/08/2009 00:26
Report abuse
Wake up people. Final Salary Pensions are an obsolete idea. The idea that you work for one employer for 40 years & then upon reaching 65 the employer will look after you till you die is dead. As people live longer the cost for the employer and the government is unsustainable hence it has to be stopped. People need to take some personal responsibility and start making preperations for how they are going to afford the cost of old age. People assume that your costs will go down as they retire. Actually they go up especially when you take into account costs of nursing home so message is expand your income by minding your own business whether
that be starting your own business or trading shares etc and start putting money aside for your retirement.
- Rupert, London, 25/08/2009 20:57
Report abuse
It seems many large companies are explioting the down turn to close pension schemes. Not good
- Adrian, London, 25/08/2009 17:52
Report abuse
