Union Anger over Two Per Cent Pensions Cap
September 20, 2008
Union leaders reacted furiously yesterday to pension changes about to hit 1,300 staff at Legal & General.
The insurance giant is planning to place a two per cent cap on future pay rises for the purposes of pension calculations.
It means that if staff get a four per cent wage increase only half of that will boost their pension.
The Unite unionís pension expert calculates the proposal could cut the pension of a 40-year-old worker on average earnings by £2,500 a year.
Deputy general secretary Graham Goddard says the union is considering a legal challenge and possible industrial action. L&G said as people were living longer the firm had to be sure it could afford to fund the scheme.
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