about the pension scheme deficit? One thing's certain and that's Hestor is not a beneficiary so it's in his interest to sort out the deficit according to the needs of the company. Also people are forgetting that a deficit is at a fixed point in time and can completely change (for worse or better) almost overnight. It's the discount rate on long term bonds that are the issue, not the RSA PS. GI is an easy game as long as the risk management is sorted, that's what investors need to check. Oh, and yes, I am invested here (average at 440 ish)
I take on board everything you have responded with and agree to a point.
However I am almost certain that a large number of employees that have been paying into a final salary scheme for more than 20 years, have now been switched over into defined benefits/pension pot schemes on an accrual basis.
They used to quote their fantastic final salary pension scheme in almost every recruitment advert they put out.
It should be treated the same as other pension changes as you have indicated. They should agree to split the pension payment, on retirement according to how many years you paid in under final salary and how many under newer scheme. E.G. worked 44 years and for first 33 years paid into final salary scheme, then 3 quarters of pension should be based on your actual final salary and the rest according to the new sheme arrangements. Seems Dick Turpin rides again!
Regarding the huge pension deficit...... As with many other companies carrying huge deficits, it would not surprise me at all if RSA, or its constituent companies before merger, had benefitted for extended pension contribution holidays, whereby they made no contributions at all, as they felt there was already plenty in the pot to cover all future pensioner commitments. That should never have been allowed as it was a direct raid on the surplus generated by successful investments that would become the future pensions of its existing employees. As a result of the current deficit, RSA have diluted the previously agreed pension terms that employees signed up for and paid into. So you sign up for a great pension and agree the payments and just when you are about to retire, the rules are changed and you end up with bu**er all, while the execs fill their pockets and pension pots with obscene amounts in comparison to what the average Joe will get
It is also noteworthy that RSA have watered down their employee ShareBuild scheme massively reducing the incentive for staff to invest in their own company. RSA will now only match monthly ShareBuild purchases on a basis of 1:5 as opposed to the usual 1:1 offered by the majority of FTSE companies that operate the scheme. It is a real kick in the teeth for loyal employees who would have to hold onto the matching shares for 5 years to get the full benefit. I expect the top executives will still keep their additional bonus benefits intact rather than have them reduced by such plundering. They are also employing more and more people on these punitive temporary contracts at arms length via agencies, that act as the pseudo employer, treating the eager workforce like dirt with so many unfair working practices it is unbelievable. "I have to be at my desk with my computer up and running, having read all my emails and work messages, ready to take a call at my exact starting time. I do not get paid for the preparation, and must take calls right up to the very second my session finishes, even though calls can take a minimum of 2-3minutes and can last for up to 30 minutes. So ifI get a call 10seconds before my signing off time, I have to take it and finish it. I only get paid if it runs more than 8 minutes into my own time and I must contact my leader, before signing off to request the overtimact up to e to be logged, which is very difficult and time consuming to do in itself. So I end up getting away 20 minutes late with little chance of being paid" Companies can extract up to an extra 10% unpaid work from employees via such sharp practices and do it without any qualms as "they" are not the employer, that role is undertaken by an "umbrella" company. There is no doubt, however, who lays down the rules of how the employees will be treated, but who hide behind this "umbrella" arrangement in order that they can maintain their reputation as a "Times Top 100, employer as rated by its (permanent) employees" The way they operate is truly despicable!
RSA’s Hester awarded two-thirds of bonus despite missing targets: Stephen Hester, Chief Executive of RSA, has been awarded two-thirds of his potential annual bonus even though the FTSE 100 insurer missed financial performance targets.
RSA considers Latin America sale: RSA is considering a sale of its Latin America business in what would be the largest disposal yet by the U.K. insurer’s Chief Executive Stephen Hester as he undertakes a wide-ranging restructuring.
RSA returns to the black under new Boss Stephen Hester but shares drop as dividend disappoints: Insurer RSA heralded a return to profit under new Chief Executive Stephen Hester, by announcing it will pay a final dividend to shareholders after a year of restructuring, cost savings and disposals - in addition to putting its Middle East and Russian businesses on the block.
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