DanskeBankstaffvotetoaccept majorpensionschemechanges
HUNDREDS of Danske Bank staff have voted to accept major changes to their pensions at the company, it can be revealed.
It’s understood hundreds of workers who joined the company before 2003 have now voted to accept a move to a defined contribution pension scheme.
Members of the Financial Services Union (FSU) have voted to accept the closure of their former defined benefit scheme, which normally involves a guaranteed lump sum.
In addition, Danske has also said it doesn’t foresee any compulsory redundancies at the bank, at least up until the end of 2018.
Mandy La Combre of the FSU said members in Danske Bank “voted to accept proposals for a new defined contribution pension scheme, following the decision by the trustee to close the defined benefit scheme for future accrual”.
“The new scheme is the result of intense negotiations between FSU and Danske Bank and we have tried to get, what we believe is, the best possible deal for members,” she said.
It will include a percentage of salary contribution by the bank, the flexibility for staff to take some of that contribution as salary and a “one-off transition payment” of
5% of gross salary, or £2,500 to “acknowledge the significant change in pension arrangements”.
The bank has also “committed to important gains for all staff including an enhanced Danske Bank staff are moving to a defined contribution pension scheme healthcare package, without any additional contribution”.
Larry Broderick, general secretary of the FSU, said it had been a “difficult decision for Danske Bank staff who are members of the defined benefit scheme”. “However, I honestly believe that we have negotiated the best deal available,” he said. “In addition to the pension changes FSU has also secured important commitments regarding the future of Danske Bank in Northern Ireland.The bank has committed to retaining the branch network into the future.”
Danske has 44 branches here. “The bank has also given an important commitment regarding job security stating that (with the exception of unforeseen circumstances) it doesn’t envisage any ongoing changes resulting in compulsory redundancy up to the end of 2018,” he said.
“That is a commitment we will be looking to extend past that date.
“Importantly, the bank has also committed to training and support for any staff moving into a new role in the bank.”
A spokesman for Danske Bank “confirmed to employees who are members of the Northern Bank Pension Scheme (a defined benefit arrangement), that this scheme will be closing to future accrual from September 30, 2018”.
“The determination was made after a thorough consultation with impacted staff and regular engagement with the FSU,” the bank said.
“The changes relate only to current employees who joined the Bank on or before December 31, 2003.
“It was at this time that the defined benefit pension scheme closed to new members.
“After September 30, 2018, affected employees will be offered pension benefits through a defined contribution pension arrangement.”
In its latest accounts, Danske Bank, which is headed by Kevin Kingston (left) in Northern Ireland, reported a “record” performance for its mortgage lending, although pre-tax profits for January to September were down 22.1.% to £77.4m.
The Danish-owned bank reported growth of 30% in both new mortgage lending and new business lending.