Union hits out at RBS pension changes

Royal Bank of Scotland has been accused of making its pension fund “unaffordable” after changing the terms of its main scheme.

About 42,000 members of the bank’s final salary pension scheme were told yesterday that if they want to receive the full entitlement when they retire at 60, contributions must increase from zero to 5 per cent. Staff can still continue with zero contributions, but must work to 65 to receive full entitlement.

David Fleming, national officer of the union Unite, said: “With 28,000 workers receiving no pay rise this year, these changes will make access to the pension scheme unaffordable for many.

“The bank is attempting to push through these changes without any proper negotiations. We demand that RBS gets around the table and negotiates.”

RBS closed its final salary pension scheme to new staff in 2006 and introduced a cap to the scheme in 2009. A spokesman said: “The changes announced today are essential to ensure that the group can afford to sustain the final salary pension scheme given the continued improvements in life expectancy.”