Bank blasted over pensions changes

Yorkshire and Clydesdale banks yesterday started a 60-day consultation with 4,000 members of its defined benefit pension scheme, asking them to pay in to their pensions for the first time, or accept lower benefits.

The banks, owned by National Australia Bank, insisted the scheme is “simply not sustainable in its current form”.

The banks employ about 2,000 staff in Yorkshire, and less than half of these are thought to be affected. Their 8,500 staff across the UK earn an average of £29,000.

The national officer for the Unite trade union, David Fleming, said: “The decision by National Australia Group (NAG) to make significant changes to its staff pension scheme will cause hardship for the employees and is a real blow.”

The scheme will change in April. Staff who wish to contribute will be asked to pay in three per cent of salary in 2012, rising to nine per cent by 2014. Staff who opt out of contributing will get a lower benefit going forward.

A Yorkshire Bank spokesman said: “We believe this is fair and creates a degree of parity with the remainder of our staff who generally make contributions towards their pensions.”