Warburg axes final-salary pensions

CITY investment bank UBS Warburg has been forced to follow other major British employers by slashing the pension benefits it provides. The bank, which has 6,000 London employees who have seen perks cut, has made the move because of the spiralling cost of providing final-salary pensions at a time when profits are under pressure.

For some staff pensions will be linked to average salaries rather than final salaries. Previously, long-serving staff could expect to retire on two thirds of their final salary, in many cases guaranteeing big pensions.