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Barclays caves to pressure and sweetens final salary closure

Barclays has pumped £500m into its final salary pension scheme and agreed to make a cash pay-out worth 5 per cent of salary to affected staff, after its decision to close the scheme prompted anger from employees.

Chief executive John Varley has outlined measures in a letter to staff following threats of strike action and protests.

Varley has also offered to delay the implementation of the proposed changes by four months to April 2010.

Money Marketing reported last month that Barclays staff were considering strike action in September after the bank announced the final salary scheme would close to future accruals.

Unite, the trade union, said Barclays members were “incensed” by the proposals, adding that 92 per cent of staff wanted to be balloted by Unite on industrial action.

Barclays said the closure of the scheme was necessary as the pension scheme had become untenable after its £200m surplus ballooned into a £2.2bn deficit in a year.

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Mike Pinggera

Insight’s head of multi-asset group Mike Pinggera is an idea-hunter who believes the firm’s platform gives a great base for building the portfolios

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