Anger as former Bank of England Governor Sir Mervyn King walks away with £6.3million pot
RETIRING Bank of England Governor Sir Mervyn King came under attack yesterday over his gold-plated pension worth more than £6.3million.
The colossal sum comes despite Sir Mervyn not paying a penny into the non-contributory pension pot during his 22 years at the Bank.
He will also enjoy bumper annual increases – unlike ordinary Britons whose retirement packages have been hit by Government cuts.
Pension experts say he is likely to rake in £233,000 a year.
Matthew Sinclair, Chief Executive of the TaxPayers’ Alliance, said: “Sir Mervyn King’s pension is costing taxpayers a fortune.
“It’s ridiculous that he hasn’t had to contribute into his extremely generous retirement pot yet hard- working families are expected to foot the bill.”
Rises in state pensions and most workplace schemes were tied to the consumer prices measure of inflation in George Osborne’s 2010 Budget.
Sir Mervyn backed the move but his own pension is still linked to the old retail prices index, which usually rises more quickly.
Bank of England figures show his fund reached its maximum five years ago after £1.4million top-ups.
That took his retirement pot to £5,356,500 in February 2009, the last time figures were published. Pension experts at Hargreaves Lansdown calculate it is now worth £6,322,189 – £170,000 more than it would have been if linked to the consumer prices index.
A Bank spokesman said: “The Governor’s pension reflects not only his time at the Bank but also over 20 years’ contributions from his previous career as an academic.”
The spokesman added that pension decisions are taken by Fund Trustees not the Governor.
