26 August 2009
Royal Bank of Scotland (RBS) is to scale back the benefits to
staff of 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 of 2% rise would be used when calculating
their pension.
RBS said the move was "pragmatic and necessary" but the decision
was condemned by the trade union Unite which said it was a "body
blow" to workers.
