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LTU Produces T&C Impact Analysis
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Date: 19th Dec 2009
Staff have reacted angrily to the Bank’s plan to cut their pension benefits by limiting future salary increases.
What the Bank is doing is simply trying to save money. That’s it, nothing more and nothing less. The actual amount of money it will save from the decision to limit pensionable pay increases is not very much in the grand scheme of things and can easily be afforded by the Bank. However, as we now know the consequences of the Bank’s opportunism for you and your families will range from bad to devastating. There are some 31,226 LBG staff aged between 30 and 44 in the No 1 and No 2 Pension Schemes and they, like the member opposite, are going to see their pensions devastated by the Bank’s proposals.
Depending on salary at retirement some of them could see their pensions reduced by up to £400k. There are over 15,000 staff in the No 1 and No 2 DC Pension Schemes and other Schemes in the Group who will see their employer pension contributions reduced by up to 4.5% if they continue to pay their current contribution rates. Many of those staff, who are paid some of the lowest salaries in the Bank, cannot afford to increase their contributions and the Bank’s response to that is to deliberately make them worse off.
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