Bank consults staff on future of pensions

The Australian firm which owns the Yorkshire and Clydesdale banks has proposed scrapping its final salary pension scheme.

National Australia Bank (NAB) is putting the issue of whether to move to a career average pension scheme to a vote of its 9,000 employees in the UK.

The bank admitted that such a move would reduce the entitlements of some staff but said it would make the schemes more secure – its UK schemes have a deficit of £426m.

Members of the schemes are being asked to vote on the proposed changes by the middle of March.

The company said it had consulted with employee representatives and trade union Amicus before announcing the proposed changes.

A number of leading firms are reviewing the future of final salary schemes.

Rentokil Initial and the Co-operative Group plan to freeze their final salary schemes because of their huge costs, and British Airways is reviewing options for its pension provision.

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