Pensions fury over Aussie bank
YORKSHIRE Bank owner National Australia Bank has sparked outrage by shutting its UK final-salary pension schemes to new members from the beginning of next year.
Banking union Unifi accused NAB, which also owns Clydesdale Bank and Northern Ireland-based Northern Bank, of breaking a promise made in October 1999 that it had 'no intention' to close its funds.
Unifi yesterday refused to believe another NAB pledge that the scheme's 13,800 existing members would not lose future pension rights. It threatened industrial action if any of them lost benefits.
Unifi deputy general secretary Sandy Boyle said NAB's move was 'cynical' and that closing the scheme meant new joiners will effectively take a 10% pay cut.
NAB is replacing the final-salary scheme with a riskier money purchase plan linked to the stock market.
The bank insists the new arrangements provide 'an excellent scheme for new staff', and said its move was in line with current industry practice.
Three years of falling stock markets have forced many British banks to scrap final salary schemes for new workers, although Royal Bank of Scotland and the Co-operative Bank have kept their funds open.
In September last year, new accounting rules showed NAB's UK fund was £384m in deficit.
