RBS to cap staff pension rise

Banking giant RBS is planning to cap increases in the pensions of over 60,000 workers in a "body blow" to its staff, it was revealed today.

Banking giant RBS is planning to cap increases in the pensions of over 60,000 workers in a "body blow" to its staff, it was revealed today.

The bank announced a series of proposed changes to its main final salary pension schemes, including capping the amount of salary increases that is pensionable to 2 per cent annually or the rate of inflation, whichever is lower, and reducing the lump sum payable on early retirement.

The Unite union said that against the backdrop of the "bumper" pension paid to former RBS boss Sir Fred Goodwin, the planned changes added "insult to injury".







RBS head of human resources Neil Roden said: "The rising cost of pension provision is an issue for RBS and for all companies at this time. Only one third of our staff are members of the UK defined benefit pension scheme, which we closed to new members in 2006.

"This is an expensive scheme for our shareholders to fund and a generous one in comparison to the market. The reforms we are consulting on seek to strike a balance between reducing the costs and future liabilities of the scheme to the Group, with doing what we can to protect the welfare of existing staff and scheme members.

"It is a pragmatic and necessary course of action and not a decision the Board have taken lightly."

Unite said its senior representatives at the bank would meet on Thursday to decide the "most appropriate course of action" to take in response to the announcement.

National officer Rob MacGregor said: "This is a body blow to tens of thousands of staff working at RBS. The company intends to cap pensionable future pay rises and promotions at 2 per cent which will erode workers' pensions over time.

"Unite will support its members in any action they choose to take to defend their pensions. The union will be meeting again with RBS and we expect there to be meaningful negotiations over these changes.

"Against the back drop 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.

"RBS staff, who already face great uncertainty in the face of major job losses, now face a future with retirement benefits severely reduced."

RBS is also proposing to reduce the severance terms for those workers over 50 who choose to take an immediate pension.

The bank opened consultations with Unite on the proposed changes, which are expected to be completed before the end of November.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Arts and Entertainment
'The Archers' has an audience of about five million
radioA growing number of listeners are voicing their discontent; so loudly that even the BBC's director-general seems worried
News
people
News
20. Larry Page: Net worth: $23 billion; Country: U.S; Source of wealth: Google
business
Life and Style
tech
Arts and Entertainment
A collection of 30 Banksy prints at Bonhams auction house in London
art
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

MBDA UK Ltd: Indirect Procurement Category Manager

Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...

Day In a Page

Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee
World War Z author Max Brooks honours WW1's Harlem Hellfighters in new graphic novel

Max Brooks honours Harlem Hellfighters

The author talks about race, legacy and his Will Smith film option to Tim Walker
Why the league system no longer measures up

League system no longer measures up

Jon Coles, former head of standards at the Department of Education, used to be in charge of school performance rankings. He explains how he would reform the system
Valentine's Day cards: 5 best online card shops

Don't leave it to the petrol station: The best online card shops for Valentine's Day

Can't find a card you like on the high street? Try one of these sites for individual, personalised options, whatever your taste
Diego Costa: Devil in blue who upsets defences is a reminder of what Liverpool have lost

Devil in blue Costa is a reminder of what Liverpool have lost

The Reds are desperately missing Luis Suarez, says Ian Herbert
Ashley Giles: 'I'll watch England – but not as a fan'

Ashley Giles: 'I'll watch England – but not as a fan'

Former one-day coach says he will ‘observe’ their World Cup games – but ‘won’t be jumping up and down’
Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

Holocaust Memorial Day

Nazi victims remembered as spectre of prejudice reappears over Europe
Fortitude and the Arctic attraction: Our fascination with the last great wilderness

Magnetic north

The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness