Mervyn King

Mervyn King is the governor of the Bank of England which makes him a civil servant. He is therefore on a final salary pension scheme. His current salary is £297,920. Having worked at the bank for twenty years he is eligible for a pension equivalent to two-thirds of his annual salary which I calculate as £198,613 but is being reported as £198,200. To support a pension of this size you need a large pot of money so it really should come as no surprise that the governor's pot is a massive £5,356,500. That is the amount of money you and I have paid to be put on one side so that this one civil servant can have a retirement where he receives from his pension in one day what a man on a median salary earns in a week.

Contracts

I might have got this wrong but I thought that there was a limit to the size of a pension fund before tax is applied . The Pensions Advisory Service seem to be saying the same thing here. So does this mean that Sir Fred Goodwin has an arrangement that leaves him with £693,000 after the tax has been paid? In which case the situation is worse than it first appears.