WORKERS AT Royal Bank of Scotland, one of Britain's biggest companies, will be given the option of receiving cash in hand rather than saving for their retirement after plans to close the bank's final-salary pension scheme, reports The Times .
According to the paper, RBS said yesterday it planned to close its final-salary pension scheme to new members from October this year. New staff will be given a 15% rise in their salaries to compensate for not being eligible to join the pension plan. They will be given a range of options to invest in, including a defined contribution, or money purchase scheme, or simply receiving the salary uplift in cash. RBS said the move would give new staff greater flexibility and options for their pension, adding it would cost roughly the same as the current scheme under which pension payments are b...
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