From The BBC:
High Street bank RBS is set to scale back on the benefits to staff in its final-salary pension scheme.The bank said that it would cap any future increases in pensionable pay to 2% a year, or the rate of inflation, whichever was lower. This means that even if workers get a larger pay increase or promotion, only a maximum 2% rise would be used when calculating their eventual pension. The bank was criticised early in 2009 for the pension of its former boss. Sir Fred Goodwin initially took a pension of £703,000 when he left his position as chief executive at the bank, although he has since agreed to lower his pension income to £342,500 a year. ‘Pragmatic’RBS closed its final-salary scheme to new members in 2006, and like many other businesses has been looking at its provision for existing members.
The bank said the move was “pragmatic and necessary” but the decision was condemned by the trade union Unite which said that it was a “body blow” to its 60,000 staff. It is a less dr…
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