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FSU members accept new pension deal in Danske Bank

Issued : 30 November 2017

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Members of the Financial Services Union in Danske Bank have voted to accept a new defined contribution pension scheme.

Speaking following the vote Senior Industrial Relations Officer, Mandy La Combre, said, “FSU members in Danske Bank have 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.”

Among the main features of the new defined contribution pension scheme which existing members of the defined benefit scheme have accepted are:

  • 20% of salary contribution by the Bank to the new defined contribution pension scheme;
  • Flexibility for staff to take some of that contribution as salary;
  • A once-off transition payment (equal to the lessor 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 healthcare package, without any additional contribution;

Commenting on the ballot FSU General Secretary, Larry Broderick, said, “This has 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. 

“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.  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.  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.”

“This has been a difficult period for Danske Bank staff.  However, FSU members have taken the decision to back the new pension proposals.  In addition we have secured commitments regarding the future of Danske Bank, which is important for staff and also the communities they serve,” concluded Mr. Broderick.