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Royal Bank of Scotland: Pensions

Volume 491: debated on Wednesday 22 April 2009

To ask the Chancellor of the Exchequer if he will direct UK Financial Investments Ltd. to establish whether the Royal Bank of Scotland pension scheme contains a forfeiture clause under the terms of the Pensions Act 1995. (265502)

[holding answer 20 March 2009]: UK Financial Investments Ltd. (UKFI) manages the Government’s shareholdings in financial institutions on a commercial and arm’s-length basis.

UKFI has agreed with the banks in which Government have investments that they will assure themselves that all payouts to former directors were no more than legally necessary.

With the agreement of UK Financial Investments Ltd. (UKFI), Sir Philip Hampton, the new chairman of RBS, has appointed a senior independent QC to carry out a full legal investigation of the issues relating to Sir Fred Goodwin’s pension. This investigation is ongoing.