Royal Bank of Scotland announces changes to final salary pension scheme
The Royal Bank of Scotland has today announced significant changes to the company's final salary pension scheme which will see benefits reduced in the future. This comes at a time when the UK government appears to be placing more pressure upon UK banks to control their cost bases and give taxpayer's better value for money, where taxpayer's money has been used to acquire shares. New chief executive Stephen Hester avoided the option of closing the final salary scheme completely and instead decided to downgrade the scheme and cap future pension payments.
Despite the fact this is by far and away the most sensible move announced by Royal Bank of Scotland for some time, the shadow of Sir Fred Goodwin still hangs heavy over the group and those pensioners who will see their future incomes capped will no doubt feel aggrieved. There's also some concern that those in the boardroom, who have recently been allotted potentially millions upon millions of shares, are enjoying the fruits of the recovery while the everyday workers at Royal Bank of Scotland share the misery.
Is it time that high-ranking directors of public companies also paid the price with regards to pension arrangements?
Share this..
Related stories
Spending money 'being used for savings'
Around one in three savers are looking to save more and spend less in the current financial climate, Alliance & Leicester (A&L) said today.The bank also said that just under half of savers use the internet in order to track down good deals before committing their savings to an account.According to A&L, 36 per cent of young people are planning to boost their savings, even as the economic downturn p...
Read MoreEx-Cazenove partner found guilty of insider trading
Malcolm Calvert, who worked his way up from the post room at Cazenove to become a partner in the business, is today starting a 21 month prison sentence after being found guilty on five counts of insider trading. He was found not guilty on a further seven counts brought by the Financial Services Authority (FSA) but this is still one of the most high-profile insider trading convictions by the FSA....
Read MoreIs your employment position safe in 2010?
A quick look at the financial press may give many people the impression that the worst is over with regards to the UK economic downturn and we can look forward to a more prosperous 2010. However, the truth is that the ongoing recession in the UK is the worst since the 1930s and has caused untold damage under the surface to both UK finances and the reputation of the UK overseas. While many belie...
Read MoreCan we prevent ID theft?
Over the last few years there has been a massive increase in the number of ID thefts occurring around the world with many people being left with significant debt by the fraudsters. Despite the fact that more and more people are now aware of ID theft it seems that many of us still believe it will never happen to us. Can we prevent ID theft? ID theft is basically the theft of your private details...
Read MoreWill the UK government reinvigorate the pension fund industry?
There is no doubt that the UK government has a number of specific ideas and tasks in mind for the UK pension fund industry. We have seen George Osborne and David Cameron attempt to tackle the monumental problem of public sector final salary pension schemes as well as various taxation changes with regards to the purchase of annuities and the ability to transfer assets upon death. Will this reinvigo...
Read More