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I thought the Fred Goodwin saga was over, but it seems to run and run, so I thought I'd put in my two-penn'th
The old RBS Pension plan allowed staff to retire at 60 on two thirds of their final salary after a 40-year career.
If Goodwin was treated like any other RBS employee, then his actual service since 1998, plus pensionable service transferred in from previous employment, would have only added up to a potential pension of £24,400 a year at age 50.
His Pension entitlement (of £703,000 per annum) increased by leaps & bounds because RBS treated him as having joined the scheme from age 20 (he actually joined when he was 40) - wouldn't we all like 20 years additional service for free?
It wouldn't have been so indefensible if all the other RBS staff could enjoy the same perks - but RBS closed its Defined Benefit Final Salary Pension scheme to new employees in 2006 - so devil take the hindmost.
The Economist got it perfectly right when it referred to Goodwin as a bad banker and a dishonourable man.
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