Pension Theft

A previous blog mentioned how the Clydesdale bank got a boost to their profits by cutting their employees pension entitlements . The Herald today reports that other companies have now gotten the same idea .

Standard Life recently commenced a 90-day consultation period with staff . The company's pensions working group has recommended to the board, led by chairman Sir Brian Stewart and chief executive Sandy Crombie, that it also adopt a career-average salary rather than its more beneficial pension scheme of "final-salary".
Stewart is reported in 2003 to be on a salary of £906,753 , and what it is now , who knows .
It is also nice to learn that Crombie earned £1.36m last year, including a bonus of £686,000 and that his pension jack-pot is worth £8.3m.
It's clear to say that neither in their old age will be scrimping and saving to pay their council tax and heating bills .

Meanwhile , another institution to have moved staff from final salary to career average pensions is the Cooperative Group, - yes , that local caring sharing Co-op . Interim financial statements for the year to July 29 show that Co-operative Bank alone booked an exceptional gain to profits of £109.2m stemming from the introduction of the new Co-operative group pension (average career earnings) plan. Not going to be much of a "divi" for their workers after a life-time of toil .