LONDON, March 11 (Reuters) - Lloyds Banking Group said on Tuesday it would cap the pensions of around 35,000employees in a move that will boost income by 1 billion pounds($1.66 billion) but risks a backlash from disgruntled employees.
Lloyds, which is 33 percent-owned by the government, said itwould stop increases for employees in its final salary pensionscheme, which has been closed to new staff for several years.Staff in the scheme had been receiving a 2 percent annualincrease in their pensionable pay.
The bank said that, following consultations with members ofthe scheme and unions, it had agreed to pay affected staff aone-off lump sum worth 3 percent of their pensionable pay.