Barclays PLC (BCS) is to water down the pension benefits of 17,000
long-serving employees, U.K. newspaper the Times reported on its Web site
Wednesday, citing a letter to staff from Chief Executive John Varley. The CEO
said he had reluctantly concluded it was "untenable" to let the existing
pension arrangements continue. The bank plans to close its final salary pension
fund, which has been closed to new members since 1997, to current members and
offer them benefits in a cash-balance scheme. The final salary setup had a
GBP2.2 billion shortfall in September 2008 and this has since worsened.
Barclays said pension benefits for past service were safe, and only future
accruals would be affected. Unite, the trade union representing some Barclays
staff, said employees would be angry.
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