NATIONAL Australia Bank has again stepped in to support Glasgow-based Clydesdale Bank, this time pumping £130 million into its pension scheme.
The move comes four months after the bank, which includes Yorkshire Bank, announced that 2000 employees who belong to the scheme would have to put 9% of their salary into the previously non-contributory arrangement.
It also follows a £400m capital injection into the Clydesdale Bank by NAB earlier this month designed to protect the institution from the economic slowdown and meet demands that banks beef up their capital cushions.
Clydesdale closed its pension scheme to new members in 2005 and moved from a final salary arrangement to an inferior career average one a year later.
A Clydesdale spokesman said: "As we said in September, the actions being taken are necessary to make this non-contributory pension scheme more sustainable and secure for members and the organisation."
The most recent figures published by the bank show that its pension scheme had a £180m deficit as of October 1, down from £312m the year before. Of this, £111m was attributable to the Clydesdale section and the remainder to Yorkshire Bank employees.
The Clydesdale started phasing in employee contributions at 3% of salary from the beginning of the year. These will rise to 9% by 2014.
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