RBS To Get More Government Cheese

800 Million Sterling

More than £800 million of taxpayer bailout cash injected into Royal Bank of Scotland has been earmarked to shore up the bank’s gold-plated staff pension schemes, which have collapsed into deficit after investing in RBS shares.

To ensure generous pension promises are met — including the infamous £703,000-a-year payout pledged to Sir Fred Goodwin, the former chief executive — RBS is planning to inject £807 million into its various staff and executive pension schemes, the annual report revealed yesterday.

The pension funds appear to have lost hundreds of millions of pounds investing in shares and other securities issued by RBS. The value of RBS shares in the portfolio has slumped from £69 million a year ago to £15 million. The value of other RBS instruments in the pension funds has fallen from £606 million to £421 million.

The RBS pension funds have deteriorated from an aggregate surplus of £115 million to a deficit of £1.99 billion in 12 months because of sliding investment markets and other factors.