FSU Members’ Meeting – Danske Bank Wednesday 14 June, 2017 7 FSU Members’ Meeting – Danske Bank Wednesday 14 June, 2017 7.30pm, Wellington Park Hotel, Belfast Larry Broderick, General Secretary Mandy La Combre, Senior Industrial Relations Officer

Danske Bank Members Meeting @fsuireland www.facebook.com/fsuireland www.fsunion.org

Pension is biggest staff asset Background Pension is biggest staff asset FSU engaged in the past in establishing Pension Scheme and amending it in 2008 Staff since 2008 made enormous sacrifices which has contributed to the Bank’s profitability in Northern Ireland Present proposals major implications for staff 3

June 2007 Bank announces review of Pension Scheme Reminder – Pensions 2008 June 2007 Bank announces review of Pension Scheme Scheme deficit 23 million approx Options; closure/extended retirement to 65 etc. Bank open to negotiations Trustees informed no decisions Members rallied and supported Union Agreement reached on changes focussed on retaining the Scheme 4

FSU – New Pension Agreement 2008 Accrued benefits protected Normal pension age remains at 60 Pensions in payment not affected Career average Mortality risk sharing Pension in payment up to 2.5% Members contribution Staff responded/Bank listened/Union secured agreement 5

Since 2008 – Staff sacrifices Mismanagement of Danske Group/Danske Northern Ireland Staff reductions Massive closure of Branches Major restructuring Limited pay increases over the period Loss of bonus etc. Staff adapted / Bank survived 6

Pension key for longer serving staff Staff View Pension key for longer serving staff Staff contribution not acknowledged or appreciated No real commitment to resourcing the Bank to meet customer needs Bank agenda costs focussed Pension proposals – last straw 7

Close D.B. for future accrual Introduce 20% D.C. Scheme Salary option Bank proposals Close D.B. for future accrual Introduce 20% D.C. Scheme Salary option Retirement transfer option Invest £50m into fund 8

FSU Response - Union not convinced Schemes in surplus Bank back in profit Pension offering not comparable to existing Benefit Examples misleading Much information/detail to be shared Any change must be negotiated and agreed 9

Pre-empted negotiations Role of Trustees Pre-empted negotiations Acceptance in principle undermines negotiations Need to engage with Union and Professional Representatives Need commitment no decision until Industrial Relations process is finalised 10

Employed independent legal/actuaries FSU – Action to-date Employed independent legal/actuaries Sought commitment from Bank full negotiations / listen to Union/Staff Sought engagement with Trustees Responded to members’ concerns Negotiation mandate needed 11

Next Steps - Retain Existing Scheme Members communicate to manager Members communicate to Trustees Members give Union mandate Encourage all to join Union 12

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