10 July 2007
The Bank of England is proposing to close its non-contributory
final salary scheme for new entrants, in an attempt to deal with a
current deficit of £300m.
New entrants will be offered a new non-contributory career
average scheme with a retirement age of 65.
Existing staff will remain in the non-contributory final salary
scheme with a retirement age of 60.
The Bank's current pension cost stands at 41% of salary costs, a
figure it hopes to reduce by one third.
Negotiations are ongoing with Unite about the proposed changes
and staff consultation is expected to continue until the end of
August.
