The National Australia Group, owner of the Clydesdale and Yorkshire banks, is the latest to announce proposals to drop its’ final salary pension scheme. The bank’s 8,000 workers are to vote on the plans this month which would see staff’s pensions calculated on a career average basis rather than a percentage of their final salary. Most staff would see a significant drop in their retirement income.
The announcement follows a year of negotiation between the group, unions and pension fund trustees. The National Australia Group believe that the pension plans are a part of a wider restructuring programme, and have called the reforms ‘fair and equitable’.
Our view
Final Salary Pension Schemes are very expensive and many companies need to address the position to cover costs.