Laughing all the way to the bank
(21/10/11) Public service workers are being asked to pay for the bankers' crisis, by an
average increase in their pension contributions of more than 50% if they earn above £15,000 full time.
This extra money isn't being used to improve the pension schemes for the future – it's going straight to the Treasury to pay for the bankers' crisis.
But why can't the bankers' pay for the crisis out of their own pockets? Is it because their own pensions aren't big enough?
InFocus uncovered the facts about some of the pension pots that bankers have to struggle by on during their retirement and compares them to the 'gold-plated' pensions of some of our public service workers.
After all: 'We're all in this together' – right?
Eric Daniels: aged 59.
Group chief executive of Lloyds Banking Group.
Worked there from June 2003, retired 28 February 2011.
Pension pot: valued at £5.03 million last December.
Annual pension: £210,000 a year.
Gill Malik: aged 59.
Housekeeper in West Suffolk Hospital.
Worked there for 20 years (contracted out for seven years).
Pension if she retires at 60: £1,782 a year.
Pension if she retires at 65: £2,764 a year.
Fred Goodwin: aged 50 at retirement.
Chief executive of the Royal Bank of Scotland.
Worked there from 2001 to 2009.
Annual pension: £342,500.
Poor Mr Goodwin had to reduce his pension following public outcry and negotiations with RBS. However, he was entitled to keep an estimated £2.7m tax-free lump sum as well, which would have helped to soften the blow.
John Varley: aged 54 at retirement.
Chief executive of Barclays PLC until 31 Dec 2010.
Worked at Barclays for 28 years.
Pension pot: £18.256 million.
Annual pension: £619,000 a year.
Carole Maleham: aged 59.
Driver for museums and arts for Rotherham borough council.
Employed by council for 26 years (unable to join the pension scheme for many years as she was a part-time worker).
Expected pension: £3,000 a year.
Bob Diamond: aged 60.
Group chief executive of Barclays PLC since 1 Jan 2011.
Since becoming group chief executive, Mr Diamond receives a cash allowance of 50% of his base salary in lieu of membership of a group pension scheme.
His base salary is £1.350 million a year meaning his additional payment in lieu of a pension is £675,000 a year.
Douglas Flint: aged 56.
Group chairman of HSBC holdings plc since 3 December 2010.
Joined HSBC as group finance director in 1995.
Mr Flint receives an executive allowance of 50% of his basic salary to fund personal pension arrangements. His basic salary is £1.5 million a year, so he will get an additional £750,000 each year to fund his personal pension.
Bankers – our heart bleeds for you.
(InFocus, November 2011)