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Barclays was last night accused of betraying its most loyal staff after closing its final-salary pension scheme to all workers.  It is now planning instead to freeze the goldplated pension pots of its 18,000 members and switch them into a much less secure fund.

The bank originally closed the final-salary scheme, which faces a £2.2bn shortfall, to new members in 1997, but has now gone further by forcing current workers to move to the scheme used by new staff. The older scheme was non-contributory, but the new one requires staff to pay in 3% of their salary.

People, the days of being able to rely on your private employer are coming to an end with regards to your pension security after your retirement as more companies decide to axe final-salary pension schemes, there are many more companies considering taking the same action.
It has also enraged long-standing Barclays staff, many of whom have only stayed with the bank because of its retirement arrangements. Those who have already retired from the final-salary scheme will not see their payouts affected. The frozen pots will still distribute a percentage of salary at retirement age based on the amount accrued so far.

This is a real kick in the teeth for those employees attracted to Barclays mostly because of it’s retirement package.

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