National Australia Bank is seeking to curb its wage bill in the UK by phasing out contributions to the older of its two pension schemes for half the staff working at Clydesdale Bank. The bank's plan amounts to a pay cut of around eight per cent for these staff.The proposal, which will be phased in over three years to 2014, may imply NAB needs to tip in more capital to support the scheme. This is on top of the more than £400 million needed to make up losses on investments in recent years.On Wednesday, Clydesdale advised staff of what it described as a "consultation" over changes to the pension scheme that may amount to a final decision.Unions representing the bank's staff see it that way, complaining of the hardship this will cause staff.Of NAB's workforce of 8500 in the UK more than half are not covered by the defined benefit scheme. These newer staff are covered by a contributory scheme.The bank watered down the older scheme's benefits in 2005 to make pension payments based on average salary over a number of years rather than final salary. The bank also closed the pension scheme to new staff at that time.At present, Clydesdale makes pension scheme payments under the old scheme equal to nine per cent of salary. NAB will cut this to six per cent in 2012, three per cent in 2013 and then eliminate the payments altogether in 2014.Staff will be able to make these payments themselves out of their after-tax salary.  Some tax offsets may be available.The bank will still have to pay payments into the defined benefits scheme in order to meet pension liabilities and subject to future investment returns.Staff who choose to make no payments will still receive a reduced pension.Staff in NAB UK's newer pension scheme must pay in a minimum of five per cent of their salary, which is matched by the bank. They may pay more if they wish.