RBS cuts pension benefits; union objects

Royal Bank of Scotland has plans to scale back its pension benefits to more than 60,000 workers, the move that is expected to save more than £100 million per year.

Royal Bank of Scotland, which is 70 per cent possessed by the taxpayers, said that it would cap any future increases in pensionable pay to 2 per cent per year or the rate of inflation - whichever is lower. 

The Unite union has severely criticized bank’s recent move, reminding the huge pension given to the disgraced former CEO Fred Goodwin.

On the other hand, chief of human resources at RBS, Neil Roden, said, “It is a pragmatic and necessary course of action and not a decision the Board have taken lightly.”

It may be noted here that gold-plated retirement schemes are on the decrease. Barclays has also closed its final salary pension scheme to existing workers.

RBS closed its final pension plans to its new members in 2006.