“In common with many other organisations, it has been affected by reduced investment returns as a result of the downturn, the expectation of lower returns in future as well as improvements in life expectancy rates generally.” a spokesman for the bank said
Those who do not want to contribute will be offered a lower benefit based on 1/80 of salary rather than 1/60 for those who put in money. The bank has also cut the annual increases for benefits accrued after April 2012, switching to the lower Consumer Prices Index rather than the Retail Prices Index. This measure will be capped at 5%.
And for the bank executives? Unite union said the people being hit by the latest "substantial" changes "are not wealthy bankers, but frontline banking staff who serve customers in call centres and bank branches". Unite's national officer David Fleming said the move would "trigger hardship for employees" and was a "real blow". He said it was wrong "to introduce changes that will require staff at National Australia Bank to ultimately make a 9 per cent contribution, over three years, when household budgets are already extremely stretched."