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RBS to cap staff pension rises.

Summary: Banking giant RBS is planning to cap increases in the final salary pension schemes of over 60,000 workers.

Banking giant RBS is planning to cap increases in the final salary pension schemes of over 60,000 workers.

The proposals would cap the amount of salary increases that are pensionable to 2 per cent annually or the rate of inflation, whichever is lower, and reduce the lump sum payable on early retirement.

RBS head of human resources Neil Roden said: "The rising cost of pension provision is an issue for RBS and all companies at this time. Only one third of our staff are members of the UK defined benefit pension scheme, which we closed to new members in 2006."

He added: "It is a pragmatic and necessary course of action and not a decision the Board have taken lightly."

The Unite union said that against the backdrop of the "bumper" pension paid to former RBS boss Sir Fred Goodwin, the planned changes added "insult to injury".

The bank opened consultations with Unite on the proposed changes, which are expected to be completed before the end of November.

Independent Television News Limited 2009. All rights reserved.

Independent Television News Limited 2009. All rights reserved.

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Publication:Independent Television News Limited (ITN)
Date:Aug 29, 2009
Words:213
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