Latest LTU News http://www.ltu.co.uk/index.php The latest news from Lloyds Trade Union. en-us Mental Health In Lloyds - Who Cares? http://www.protectourpensions.co.uk/ltutest_site//blog-237-mental-health-in-lloyds--who-cares? You’ll no doubt have seen that it was World Mental Health Day last Tuesday: an opportunity for us all to focus on the importance of mental health issues at work.

Mental Health as a CEO

Horta-Osório made his contribution by giving The Times newspaper an apparently very open account of his own mental health struggles in 2011 (when he was admitted to The Priory for insomnia), in which he said “I was very close to breaking”.

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Wed, 18 Oct 2017 21:41:04 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-237-mental-health-in-lloyds--who-cares?
Tipping Point http://www.protectourpensions.co.uk/ltutest_site//blog-236-tipping-point The Bank will announce shortly that it’s extending the enhanced severance terms. The HR financed in-house staff unions will claim this is an example of positive engagement and that “only by having a seat at the table” can you influence the Bank’s actions. It’s nothing of the sort. The legal position is such that the enhanced severance terms are contractual for Lloyds staff and don’t need to be extended because there is no expiration date in the first place. Lloyds staff are entitled to those enhanced terms indefinitely and if the Bank ever attempted to walk away from its obligations then it would face legal action in the High Court immediately: that would be action, it knows it would lose.

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Tue, 10 Oct 2017 18:18:49 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-236-tipping-point
Lloyds Banking Group’s New Bank Charges http://www.protectourpensions.co.uk/ltutest_site//blog-235-lloyds-banking-group’s-new-bank-charges

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Thu, 05 Oct 2017 18:26:16 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-235-lloyds-banking-group’s-new-bank-charges
Severance Terms & Diligenta http://www.protectourpensions.co.uk/ltutest_site//blog-234-severance-terms-diligenta Unite said the outsourcing of 1,050 jobs to Diligenta was a “betrayal” of Lloyds staff but isn’t their ‘partnership agreement’ with the Bank supposed to stop this happening. What is the point of such an agreement if the Bank simply ignores what a Union says and proceeds to walk all over its members. The Bank recently said of Accord and Unite “The role they play makes an important contribution to the future success of the group…….”. Is allowing 1,050 jobs to go to Diligenta “contributing to the success of the group”?

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Thu, 05 Oct 2017 13:14:27 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-234-severance-terms-diligenta
Sarah Underhill Letter – Severance Terms & Diligenta http://www.protectourpensions.co.uk/ltutest_site//blog-233-sarah-underhill-letter-–-severance-terms-diligenta

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Thu, 05 Oct 2017 13:11:29 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-233-sarah-underhill-letter-–-severance-terms-diligenta
Outsourcing To Diligenta http://www.protectourpensions.co.uk/ltutest_site//blog-232-outsourcing-to-diligenta Lloyds Banking Group’s Insurance and Wealth Division has signed a £multi-million agreement with Diligenta who will take over the administration of its closed-book life and pensions business (mainly Scottish Widows and Clerical Medical) with effect from early next year.

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Tue, 26 Sep 2017 11:43:32 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-232-outsourcing-to-diligenta
Letter To MPs – Bank Charges for Customers http://www.protectourpensions.co.uk/ltutest_site//blog-231-letter-to-mps-–-bank-charges-for-customers

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Tue, 19 Sep 2017 15:06:56 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-231-letter-to-mps-–-bank-charges-for-customers
Project 2020 http://www.protectourpensions.co.uk/ltutest_site//blog-230-project-2020 Lloyds Banking Group (LBG) is planning to merge the management structures of its two main brands – Halifax and Lloyds Bank - as part of its next three-year strategic review. Management spans of control will increase and the newly appointed Local Directors will be expected to manage branches across both brands. This restructuring was due to be announced a few weeks ago but was pulled at the last minute. The management teams and support staff that manage the two brands currently will go through a desk top selection exercise, which many of them have been through on countless occasions before. This reorganisation of the two branch networks will result in at least hundreds redundancies from management and support staff.

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Mon, 04 Sep 2017 17:40:18 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-230-project-2020
Massive Hike In Bank Charges For Staff & Customers http://www.protectourpensions.co.uk/ltutest_site//blog-229-massive-hike-in-bank-charges-for-staff-customers Staff in branches and call centres are reporting that customers are reacting angrily to the Bank’s decision to increase overdraft charges for those with agreed overdraft facilities. A few weeks ago the Bank announced “All fees and charges associated with unplanned overdrafts will be removed”. What the Bank didn’t say, was that the majority of those customers with agreed overdrafts would end up paying for its decision. The reality is now dawning on customers who have agreed overdrafts, and that will include many members of staff, that their monthly bank charges are going to increase by up to 150% in some cases. Since the letters to customers telling them about the changes were sent out last week, members have reported customers venting their anger at the Bank’s blatant attempt to force them to tale out personal loans to avoid the massive increase in bank charges. In its submission to the Competition and Markets Authority’s Retail Banking Market Investigation, Lloyds Banking Group (page 224 of CMA Provisional finding report, October 2015) made it clear that customers with higher overdraft limits would be less likely to be offered the same overdraft limits by other banks and it knows full well that it can charge what it likes and these customers either have to accept it and pay the higher charges or take out loans instead. And that, at a time when the Bank of England is warning that the rise in personal loans is dangerously high. In a speech to the University of Liverpool’s Institute for Risk and Uncertainty, Alex Brazier, the Bank of England’s Financial Stability director, said “the increase in debt was dangerous to borrowers, lenders and, most importantly from our perspective everyone else in the economy”.

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Thu, 24 Aug 2017 10:21:15 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-229-massive-hike-in-bank-charges-for-staff-customers
Bum Note For Clarinettist http://www.protectourpensions.co.uk/ltutest_site//blog-228-bum-note-for-clarinettist In the long-running case of Bradbury v BBC, the Court of Appeal unanimously found that the BBC Pension Scheme’s definition of “Basic Salary” permitted the BBC to determine whether (or how much of) a pay rise counted as “Basic Salary”. As such, the BBC was entitled to impose a cap on any increase in Basic Salary as part of the process of determining its amount. The Court of Appeal also dismissed claims that the BBC’s conduct amounted to a breach of the implied duty of trust and confidence, which arises from an employee’s employment contract.

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Mon, 07 Aug 2017 20:37:39 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-228-bum-note-for-clarinettist
Are The Severance Terms Contractual? http://www.protectourpensions.co.uk/ltutest_site//blog-227-are-the-severance-terms-contractual? The issue of whether the Bank’s severance terms are contractual or non-contractual has come up in a number of legal cases LTU has been involved in over the years. The Bank’s Job Security Policy makes it clear that the enhanced redundancy terms for HBOS staff employed before 1st January 2012 “are non-contractual and are in effect until 31st December 2017”. In respect of Lloyds heritage staff, the Bank’s Job Security Policy is silent on whether the severance terms are contractual and nor does it set out a date for the expiration of the terms. Whether the terms are contractual or non-contractual is very important in the current climate. If there is ambiguity the Bank can simply say in any legal dispute that the terms are non-contractual and the member of staff is not entitled to the enhanced severance terms. But if the Lloyds terms are contractual and there is no end date, then members of staff are entitled to those terms whether they are made redundant next year or the year after that. And let’s not forget, the Bank is due to announce the results of its next strategic review in February 2018 and that’s inevitably going to result in more job losses and more branch closures. That’s why the issue is important. Equally, we are aware of mutterings that the Bank is planning to do away with the severance terms for heritage Lloyds and HBOS staff at the end of the year.

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Fri, 07 Jul 2017 14:11:21 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-227-are-the-severance-terms-contractual?
Pensions Victory For LTU http://www.protectourpensions.co.uk/ltutest_site//blog-226-pensions-victory-for-ltu Following LTU’s long campaign, the Lloyds Banking Group Trustee Board has increased the commutation factors for converting pensions in to tax-free lump sums for members of the Lloyds Bank No 1 Pension Sc heme from 15 to 17, backdated to 1st June 2017. This will result in significant increases in the tax-free payments for members of the Lloyds Bank No 1 Pension Scheme and some examples of what it means are set out in the full newsletter (please download below).

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Tue, 04 Jul 2017 19:12:51 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-226-pensions-victory-for-ltu
IBM Refuse To Guarantee Severance Terms? http://www.protectourpensions.co.uk/ltutest_site//blog-225-ibm-refuse-to-guarantee-severance-terms? One of the biggest concerns LTU has over the outsourcing/offshoring of 500 permanent jobs to IBM is about what’s going to happen to the severance terms before staff start being made redundant from next year.

Under the current proposals agreed with Accord, staff could be made redundant in as little as 13 months after transferring to IBM - with their jobs being transferred and consolidated in other UK sites and then offshored to India - on worse severance terms to those provided by the Bank. Post the transfer, IBM could try and dismantle the current severance terms by engaging in a series of sham negotiations with the aim of seeking to replace contractual rights in respect of severance terms with an entitlement to the Statutory Redundancy terms only.

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Fri, 23 Jun 2017 11:00:54 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-225-ibm-refuse-to-guarantee-severance-terms?
More Job Losses In LBG http://www.protectourpensions.co.uk/ltutest_site//blog-224-more-job-losses-in-lbg It seems that even the Widow is not immune from the Bank’s rush to achieve its cost:income ratio of 45% (currently 48.7%) by the end of 2019. At the weekend there was speculation that the Bank had started discussions with Standard Life Aberdeen about a merger with Scottish Widows. The job losses that would result from the coming together of those two former mutuals would be catastrophic. We will come back to this issue in a separate Newsletter.

Today, the Bank has announced that a further 720 job losses across its Connect, Wealth, Retail Business Banking and Group Operations business units, although it is creating 380 new roles. However, for many staff the locations of the new roles are going to make it impossible for them to take the alternative roles. The 250 staff in the Dundee Contact Centre have been told that the building is closing at the end of 2017 but there are jobs at the Connect site in Dunfermline, a round trip of some 80 miles. For the majority of staff, many of which are in the lowest grades, such moves are going to be impossible to take up, and the Bank knows that.

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Wed, 21 Jun 2017 16:55:51 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-224-more-job-losses-in-lbg
The Worst Deal Ever http://www.protectourpensions.co.uk/ltutest_site//blog-223-the-worst-deal-ever The outsourcing and then offshoring of 500 permanent IT staff to IBM may be cost neutral for the Bank but it certainly isn’t cost neutral for those staff who are being forced to move to IBM. And you can bet that those Senior Managers who have been at the forefront of pushing for this outsourcing/offshoring model will be justly rewarded when bonuses are being distributed at the end of the year.

The compensation payments, and we use those words loosely, agreed by the Bank, the HR approved unions and IBM, are derisory both in respect of the huge financial losses IT staff face and compared to the terms that LTU has negotiated previously on behalf of staff.

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Wed, 21 Jun 2017 11:54:12 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-223-the-worst-deal-ever
‘Lacking In Purpose’ http://www.protectourpensions.co.uk/ltutest_site//blog-222-‘lacking-in-purpose’ Since the beginning of the year the mantra from the Bank’s Senior Management has been about staff in branches being more “Effective”. 

A member of Robin Bulloch’s senior management team said recently that:

“Through BB4C we’ve removed activity standards but there are substantial areas of our business where our meetings are still lacking in purpose”. 

You don’t need Google translator to understand that what the Bank is saying is “staff are seeing lots of customers but not enough business is being generated from those meetings”.

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Mon, 12 Jun 2017 12:06:29 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-222-‘lacking-in-purpose’
Black Cloud Engulfs IT Staff http://www.protectourpensions.co.uk/ltutest_site//blog-221-black-cloud-engulfs-it-staff A number of members in Group IT have questioned the timing of the Bank’s announcement to outsource and then offshore 500 IT jobs to India. The Bank’s Cloud Technology strategy has been known for many months, LTU published details of what was going to happen back in March, but the Bank waits until 48 hours before the general election to confirm the details of the worst kept secret in LBG. Why now? Why not next week or the week after? Given the fact that its proposals had been criticised in previous media reports, one could be forgiven for thinking the Bank was trying to manage the bad news by making sure it was announced whilst the attention of the media was rightly focused on more important issues.

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Fri, 09 Jun 2017 08:36:33 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-221-black-cloud-engulfs-it-staff
500 IT Jobs Going To India http://www.protectourpensions.co.uk/ltutest_site//blog-220-500-it-jobs-going-to-india The Bank has announced today that it will outsource large parts of its IT estate to IBM in a deal worth over £1.3bn over 10-years. Up to 1,900 jobs IT jobs will be outsourced to IBM, of which 500 will be permanent LBG roles. Permanent staff will be forced to move to IBM on 1st September 2017. The bulk of the work being outsourced to IBM will then be offshored to India over a four-year period. LBG staff will be retained whilst the work is being offshored, and will then be made redundant.

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Tue, 06 Jun 2017 11:25:39 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-220-500-it-jobs-going-to-india
£20Bn Case Goes To High Court http://www.protectourpensions.co.uk/ltutest_site//blog-219-£20bn-case-goes-to-high-court The Union’s landmark legal case on the equalisation of Guaranteed Minimum Pensions (GMPs) has now been lodged with the High Court. Members will recall that the Bank, LTU and the Lloyds Banking Group Pensions Trustee Limited are bringing the case jointly.

Three representatives of the Lloyds Bank Pension Scheme No 1, Lloyds Bank Pension Scheme No 2 and HBOS Final Salary Pension Scheme have been joined to the proceedings to argue the case that benefits must be equalised on the basis most favourable to members. LTU’s solicitors and barristers are representing the three representative members in this case.

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Tue, 23 May 2017 10:27:41 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-219-£20bn-case-goes-to-high-court
The New PPI Scandal? http://www.protectourpensions.co.uk/ltutest_site//blog-218-the-new-ppi-scandal? It seems that little is ever new in the design and marketing of risky financial products. The gullibility of customers and so-called asymmetry of information (where sellers know much more about the products than customers) will always be exploited in order to create profit opportunities. And so it was with structured financial products.

From 2000 onwards, Lloyds TSB Bank (which became Lloyds Banking Group following the HBOS merger) started selling structured financial products to customers. These were known to customers as:

Market Linked Deposit (MLD)
Offshore Limited Deposit (OLED)
Inflation Rate Bond (IRB)
Capital Protected Fund (CPF)
Protected Capital Solutions Fund (PCSF)
Guaranteed Investment Bond (GIB)

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Wed, 10 May 2017 17:09:52 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-218-the-new-ppi-scandal?
Executive Pay http://www.protectourpensions.co.uk/ltutest_site//blog-217-executive-pay

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Wed, 10 May 2017 17:05:29 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-217-executive-pay
Lloyds Banking Group Pension Schemes – Commutation Factors http://www.protectourpensions.co.uk/ltutest_site//blog-216-lloyds-banking-group-pension-schemes-–-commutation-factors

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Thu, 27 Apr 2017 19:33:17 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-216-lloyds-banking-group-pension-schemes-–-commutation-factors
Lloyds Banking Group, Reading and New Trustee Board Letter http://www.protectourpensions.co.uk/ltutest_site//blog-215-lloyds-banking-group-reading-and-new-trustee-board-letter

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Thu, 27 Apr 2017 19:11:13 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-215-lloyds-banking-group-reading-and-new-trustee-board-letter
Technical Issues With System http://www.protectourpensions.co.uk/ltutest_site//blog-214-technical-issues-with-system It’s somewhat ironic that when the Bank announced the recent branch closures and redundancies because it said customers were increasingly using smart phones and tablets to access their banks accounts, many of those branches that were closing couldn’t access Robin Bulloch’s teleconference to find out what was happening because of “technical issues with the system”. Members found out their branches were closing or being downgraded when they read about it on the Bank’s intranet site or by speaking to staff who had managed to get through to the teleconference.

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Thu, 27 Apr 2017 19:06:00 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-214-technical-issues-with-system
The Value Of Pensions http://www.protectourpensions.co.uk/ltutest_site//blog-213-the-value-of-pensions We are aware of one female member of staff with a pension of £2,029 per annum at age 60 who has been offered a cash equivalent transfer value (CETV) of £176,000. That’s 87 times the projected pension income. 

Whilst it is true that not all transfer values will have the same multiplier, the transfer values being offered by the Trustee, which are calculated by the Scheme Actuary, taking into account discount rates, inflation, GMP revaluations, market conditions and mortality rates, are worth significantly more than the commutation factors used by the pension schemes when converting pensions into tax-free lump sums. Before we discuss commutation factors and transfer values, the Union is still receiving reports from members who are experiencing long delays in getting their transfer value quotes. The new administrator should have anticipated the level of demand for CETVs and put in place contingency plans to ensure that quotes were dispatched quickly. The Trustee Board should be writing to the administrator telling it to reduce the timescale for producing quotes from 6 weeks to 3 weeks. The length of time it takes to produce quotes is important because valuations are only valid for 3 months and unnecessary delays could cause members to be seriously disadvantaged. We have also noted that in some cases there are significant differences between initial CETV estimates being provided to members and the actual quotes received once members have opted out of their pension schemes.

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Fri, 07 Apr 2017 09:45:09 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-213-the-value-of-pensions
Branch Closures & Redundancies http://www.protectourpensions.co.uk/ltutest_site//blog-212-branch-closures-redundancies The Bank has responded to LTU’s Newsletter last week in which we said: “…..we are aware that many LDs have already been told which areas they will be covering. It’s common knowledge that the Bank is going to reduce the number of Regions and the number of Local Director Groups. Given it’s common knowledge the Bank should announce it now rather than waiting until next month”.

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Wed, 05 Apr 2017 14:16:20 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-212-branch-closures-redundancies
Levelling The Paying Field http://www.protectourpensions.co.uk/ltutest_site//blog-211-levelling-the-paying-field The Bank has confirmed that the Group Chief Executive, Antonio Horta-Osorio received an 8.4% salary increase last year. That was the largest salary increase of any member of staff in the whole of Lloyds Banking Group. Details of the difference in pay and benefits between the GCE and all employees across the Bank are set out in the table below. This year the GCE will get a salary increase of 6.5%, again the largest annual salary increase of any member of staff in the Bank.

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Fri, 31 Mar 2017 09:22:28 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-211-levelling-the-paying-field
No Silver Lining In IBM Cloud http://www.protectourpensions.co.uk/ltutest_site//blog-210-no-silver-lining-in-ibm-cloud In response to our Newsletter announcing the Bank’s plans to outsource 1,900 IT jobs to IBM and then stand by whilst those jobs are offshored and Lloyds staff made redundant, Jacqueline Guichelaar-Fauvel, CIO of Infrastructure and Services at Lloyds, said in a recent teleconference that no final decision had been made on the Group’s IT Destination Strategy. However, in the same breath she said the Bank was discussing its plans with Accord and Unite, who will of course raise no objections.

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Wed, 29 Mar 2017 11:50:33 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-210-no-silver-lining-in-ibm-cloud
Yet More Redundancies http://www.protectourpensions.co.uk/ltutest_site//blog-209-yet-more-redundancies The Bank announced that there will be a further 1,090 job reductions covering 12 different areas of the Bank (Commercial Banking, Customer products and Marketing, Group Operations, Consumer Finance, Insurance, Group Finance, Group Risk, People, Legal and Strategy and PAs). Details of those job reductions will be covered in a separate Newsletter. What’s clear when you look at some of these areas of the Bank is that this will be the 4th or 5th reorganisation they have been through in the last few years. As we said in a previous Newsletter we are aware of some members who have gone through the stresses of the selection process following previous announcements and secured new roles. Those same staff will now be told that they must go through the whole process again and spend the next few months waiting to find out whether they have got jobs or not. That’s unacceptable.

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Thu, 23 Mar 2017 17:55:52 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-209-yet-more-redundancies
Bonus Awards 2017 http://www.protectourpensions.co.uk/ltutest_site//blog-208-bonus-awards-2017 This year the Bank is reducing annual bonus payments again by 19%, with minor variations between business units.

The exact details of how the divisional bonuses have been calculated and the on-target levels they will deliver are set out in the table shown further on in this newsletter. The actual awards for staff, broken down by grade and performance rating, are available from the Union’s Bedford Office.

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Wed, 15 Mar 2017 12:47:25 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-208-bonus-awards-2017