The UK's biggest trade union, Unite, has said that the Royal Bank of Scotland's (RBS) defined benefit (DB) pension scheme changes are a "body blow" to the bank's 60,000-strong workforce.

RBS, has announced alterations to the scheme which would see pensionable future increases in salary limited to either two per cent, or to inflation - depending on whichever is lower. The move has prompted senior Unite members to seek talks with the bank, which also proposes to reduce the severance terms for workers over 50 who opt to take an immediate pension. A meeting is expected to take place tomorrow (Thursday 27 August).

"Unite will support its members in any action they choose to take to defend their pensions," said Rob MacGregor, national officer at Unite. "The union will be meeting again with RBS and we expect there to be meaningful negotiations over these changes."

Unite added that, in light of Sir Fred 'the Shred' Goodwin's huge pension payout earlier this year, these plans just add "insult to injury to the workers paying the price for a crisis for which they hold no responsibility.

"RBS staff, who already face great uncertainty in the face of major job losses, now face a future with severely reduced retirement benefits."

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