UK banking and insurance group RBS - holding company for the Royal Bank of Scotland and NatWest retail banks among other operations - has joined the rash of British companies that are closing their final salary pension schemes.
RBS’s move comes just two years after the company gave assurances that the final salary scheme was secure. However the development is in line with current trends as changing corporate attitudes to pension schemes and their mounting liabilities has led to a string of top listed companies closing their final salary provision.
The Independent reports that RBS will offer new starters an extra 15% on their pay as a replacement for the final salary option, stating that a ‘one size fits all’ scheme is no longer appropriate for the modern workforce. The bank is also set to offer existing staff the chance to opt out and take the extra salary.