UK - A war of words has erupted between former RBS chief executive Sir Fred Goodwin and city minister Lord Myners after the ex-banker refused to give back some or all of his £650,000 (US$922,600) a year pension.
He said: "To voluntarily accept a reduction in a pension entitlement which has been built up over many years and in other employments in addition to RBS, is not warranted."
Myners hit back, calling the decision "unfortunate and unacceptable" given the fact the pension allowance was 'discretionary'.
He added: "I do not agree with your rationale for declining my request that you voluntarily reduce your pension […] the losses reported today by the bank which you ran until October cannot justify such a huge reward."
Independent pension consultant and former Downing Street adviser Ros Altmann said the value of Goodwin's pension would equal "well over £20m" over the course of his life, although had RBS 'failed' and been taken under the aegis of the Pension Protection Fund (PPF), he would only be eligible for a pension of around £20,000 a year.
She said: "Just because the Government has decided that taxpayers' money must be used to pretend that our biggest banks have not failed, does not change the fact that these companies are effectively bust.
"It is very difficult to see what social or moral rationale there can be for bankers' pensions to be treated so differently from those of workers or directors in all other companies. Those are the rules that apply to everyone else."
Yesterday, Global Pensions reported (Globalpensions.com; 26 February 2008) RBS Group's pension scheme deficit had ballooned from a surplus of £340m in 2007 to a deficit of £1.996bn at the end of 2008 - a decline of £2.3bn.
The company also reported an end of year loss of £24.1bn for 2008.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.