Lloyds Trade Union

November 06, 2013 12:18 ET

Union to Ballot Members on Pension Changes

LONDON, UNITED KINGDOM--(Marketwired - Nov. 6, 2013) - LTU, the independent trade union representing 40,000 Lloyds Banking Group staff, has branded as naked opportunism the Group's proposal to freeze pensionable pay increases with effect from 2nd April 2014 for those staff in defined benefit or 'final salary' pension schemes. The Bank introduced a 2% pensions cap back in 2010 when it introduced new Terms and Conditions of Employment following the merger of Lloyds TSB and HBOS.

£5bn In Lost Pension Benefits

LTU's analysis on benefit projections show that:

  • By reducing the pensions cap from 2% to 0% the average loss in pension benefits for ten typical jobs across the Bank is £143,000, ranging from £245,000 for a Risk Manager to £50,000 for a front line member of staff.

  • If we averaged those losses across all members of the Bank's defined benefit pension schemes (35,000) that equates to some £5bn in lost pension benefits.

  • Details of the pension losses by role are set out in table below:

Ballot Of Members

The Bank has started a 60-day consultation process but it's a sham. Let's be clear; the Bank's Senior Management team have no intentions of listening to the views of staff or changing its plans regardless of the level of feedback. Only direct action will make the Bank change its plans.

LTU will be balloting its members on the Bank's plans shortly.

Union Comments

Commenting on the announcement today, Mark Brown, General Secretary of LTU, has said:

"Some 35,000 staff and their families are going to see their pension benefits and retirement hopes destroyed. On this issue, it would seem that the moral compass of some of the Bank's Senior Executives is so messed up it's surprising they can find their way out of Gresham Street (Bank's Head Office) to their chauffeur driven cars.

And let's be in no doubt about it: if Antonio Horto-Osorio, Alison Brittain, George Culmer and the rest of the General Executive Committee were members of one of the Group's defined benefit pension schemes they would move heaven and earth to protect their own benefits but not, it seems, those of their staff."

About LTU

LTU - with 40,000 members - is the largest independent trade union representing staff in the Lloyds Banking Group. Within the merged Bank, Accord would be the second largest union with over 26,000 staff and Unite the third, representing only approximately 6,000 staff across the Group.

For More Information

You can download a copy of LTU's Newsletter entitled 'BECAUSE YOUR FAMILY MATTERS BUT NOT IF YOU'RE IN A DB SCHEME' at http://www.ltu.co.uk/newsletters/16.

Loss in present value of pension (nearest £1000) of reducing cap from 2% to 0%
Role Age Sex Years of pensionable service Salary Estimated "loss" in respect of capping pensionable salary for pension benefits already accrued Estimated "loss" in respect of capping pensionable salary for pension benefits in the future Total 'Loss'
Risk Manager 46 M 25 101,500 157,000 88,000 245,000
Local Director 51 M 31 89,300 146,000 42,000 188,000
HR Business Partner 41 F 20 91,800 118,000 112,000 230,000
Customer Assistant 47 F 27 20,300 34,000 16,000 50,000
Wealth Management Advisor 50 M 33 72,930 124,000 38,000 162,000
Senior Personal Banking Manager 41 M 23 31,200 44,000 36,000 80,000
Manager Wholesale Markets 53 M 34 67,560 102,000 21,000 123,000
Functional specialist 44 F 18 69,200 80,000 71,000 151,000
Manager Operations 43 F 22 43,500 62,000 48,000 110,000
Branch Manager 50 M 30 41,200 68,000 23,000 91,000

Contact Information