Retirement Benefits Slashed at RBS

LONDON - Unite, Britain’s biggest union, has today described RBS’s planned cuts to its pension scheme as a ‘body blow’ to its 60,000 staff.

RBS today (25th August) announced changes to the group’s defined benefits final salary pension scheme. Pensionable future increases in salary will be limited annually to 2 per cent or inflation (CPI), which ever is lower.

The union’s senior representatives at the bank will meet this Thursday (27th August) to decide the most appropriate course of action to take in response to this announcement.

Rob MacGregor, Unite national officer said: “This is a body blow to tens of thousands of staff working at RBS. The company intends to cap pensionable future pay rises and promotions at 2 per cent which will erode workers’ pensions over time.”

“Unite will support its members in any action they choose to take to defend their pensions. The union will be meeting again with RBS and we expect there to be meaningful negotiations over these changes.”

“Against the back drop of Sir Fred Goodwin’s bumper pension these planned changes add insult to injury to workers paying the price for a crisis for which they hold no responsibility.”

“RBS staff, who already face great uncertainty in the face of major job losses, now face a future with retirement benefits severely reduced.”

The company is also proposing to reduce the severance terms for those workers over 50 who choose to take an immediate pension.

Source: Unite the Union

Contact: Ciaran Naidoo on +44(0)7768-931-315