Public sector workers could face a renewed battle over pensions after the Bank of England became the first high-profile public institution to announce plans for scrapping its final-salary scheme, reports The Times.
In a leaked internal memo, the Bank proposes to replace its generous final-salary scheme for all new employees with a pension based on average salary. It also wants to increase the retirement age from 60 to 65 and remove a perk that allows employees to retire early and claim their pension without penalty. It said that the move was necessary to help to plug a £300m deficit in its pension fund. Pension experts said that the move was significant because the Bank’s scheme is widely seen as a gold standard in the public sector. SLIGHTLY SOFTER THAN EXPECTED inflation figures did little to di...
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