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RBS scales back staff pensions

RBS scales back staff pensions

The Royal Bank of Scotland PLC said Tuesday it plans to scale back its pension benefit to staff, placing a cap on any future increases.
RBS, which is 70 percent owned by the taxpayers after being bailed out by the government last year, said that it will cap any future increases in pensionable pay to 2 percent a year, or the rate of inflation _ whichever was lower.
The Unite Union criticised the planned changes, noting the bumper pension handed out to disgraced former Chief Executive Officer Fred Goodwin.
Goodwin, whose aggressive expansion strategy was blamed for RBS's downfall, intially took a pension of 703,000 pounds when he left the bank. After a public and political outcry, he agreed to lower his pension income to 342,500 pounds a year.
RBS closed its final pension plan to new members in 2006.
The bank has begun talks with the union on the proposed changes for its 60,000 staff. The consultation is due to be completed by the end of October.


Updated : 2021-05-17 01:50 GMT+08:00