Minister's £100,000 'pension link' to RBS

MPs want to question Lord Myners over his director's pension from NatWest

Lord Myners, the minister at the heart of the row over the £703,000-a-year pension enjoyed by the former Royal Bank of Scotland (RBS) boss Sir Fred Goodwin, is drawing an annual pension of almost £100,000 from a company that is linked to a subsidiary of the troubled bank.

MPs on the Commons Treasury Select Committee want to question the City minister about his personal knowledge of the RBS pension scheme and his own pension from his time as a director of NatWest, which RBS bought in 2000.

The NatWest Group's annual report for 1999 shows that Lord Myners would be entitled to a £99,800-a-year-pension upon reaching 60 – his current age.

His allies said last night the pension was from the fund managers Gartmore, where Lord Myners worked for 16 years and was chief executive. NatWest bought Gartmore in 1996 but RBS sold it soon after it acquired NatWest.

Aides of the minister, who was heavily involved in the Government's decision to inject £33bn into RBS, insisted that there was no conflict of interest because his pension from Gartmore had "no link whatsoever" with his role in the bank rescue or the controversy over Sir Fred's pension.

His link with Gartmore – but not with NatWest – is mentioned in Lord Myners' entry in the House of Lords register of interests. It lists his "benefits consequent to past employment by NM Rothschild and Sons Ltd, Gartmore and Marks & Spencer" but does not disclose how much he receives.

The former chairman of the Low Pay Commission is an ally of Gordon Brown, who persuaded him to join his Government last October. He does not draw a ministerial salary.

Alistair Darling, the Chancellor, has agreed to be questioned by the Treasury Committee on 19 March as part of its investigation into the banking crisis. But Tory members of the committee suspect that Mr Darling is trying to shield Lord Myners. As well as wanting to ask him about his own links with NatWest, they intend to press him about what he knew about the controversial pension that was handed to Sir Fred, the former chief executive blamed for the virtual collapse of RBS.

Lord Myners insists he was not told the scale of Sir Fred's pension last October, when the RBS boss stood down as part of the Government's bailout, and did not approve the payment. But RBS claims it told Lord Myners that Sir Fred's pension pot was worth between £15m and £20m.

Treasury sources say that no decision has been made on whether Lord Myners will appear before the committee. A Treasury spokesman said last night: "It would not be appropriate for the Treasury to comment on a minister's personal financial interests."

Lord Myners lost his boardroom job at NatWest after the bank lost its fight to remain independent in 2000. Sir Fred was widely seen as the victor in a bidding war for NatWest and won promotion to the chief executive role.

When he was embroiled in negotiations with the Government over last autumn's bailout of RBS, he described his talks with Lord Myners as more like a "drive-by shooting".

After leaving NatWest, Lord Myners built a successful career for himself with a series of non-executive directorships. He stood down as the chairman of the Guardian Media Group to join the Government.

In an interview in January, he called on banking boards and shareholders to crack down on the reckless behaviour of those in management, saying that if people had committed crimes they should be prosecuted.

"I have met more masters of the universe than I would like to, people who were grossly over-rewarded and did not recognise that. Some of that is pretty unpalatable," he said.

"They are people who have no sense of the broader society around them. There is quite a lot of annoyance and much of that is justified. Let us be quite clear: there has been mismanagement of our banks."

News
people And here is why...
Arts and Entertainment
Amazon has added a cautionary warning to Tom and Jerry cartoons on its streaming service
tv
Voices
voicesBy the man who has
Sport
Arsene Wenger tried to sign Eden Hazard
footballAfter 18 years with Arsenal, here are 18 things he has still never done as the Gunners' manager
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
The new Windows 10 Start Menu
tech
Arts and Entertainment
Kristen Stewart and Robert Pattinson star in The Twilight Saga but will not be starring in the new Facebook mini-movies
tvKristen Stewart and Stephenie Meyer will choose female directrs
Arts and Entertainment
Hilary North's 'How My Life Has Changed', 2001
books(and not a Buzzfeed article in sight)
News
William Hague
people... when he called Hague the county's greatest
News
More than 90 years of car history are coming to an end with the abolition of the paper car-tax disc
newsThis and other facts you never knew about the paper circle - completely obsolete today
Arts and Entertainment
There has been a boom in ticket sales for female comics, according to an industry survey
comedyFirst national survey reveals Britain’s comedic tastes
Arts and Entertainment
Twerking girls: Miley Cyrus's video for 'Wrecking Ball'
arts + ents
Arts and Entertainment
Ed Sheeran performs at his Amazon Front Row event on Tuesday 30 September
musicHe spotted PM at private gig
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

General Cover Teacher

£120 - £125 per day: Randstad Education Luton: Are you looking for part time/ ...

SEN (SLD/PMLD) Teacher

£120 - £130 per day: Randstad Education Chelmsford: Are you a quailed Teacher ...

General Cover Teacher

£120 - £125 per day: Randstad Education Luton: Currently looking for teachers ...

SEN Teaching Assistant Runcorn

£50 per day: Randstad Education Cheshire: SEN Teaching Assistant EBD , Septemb...

Day In a Page

Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?
Why do we like making lists?

Notes to self: Why do we like making lists?

Well it was good enough for Ancient Egyptians and Picasso...
Hong Kong protests: A good time to open a new restaurant?

A good time to open a new restaurant in Hong Kong?

As pro-democracy demonstrators hold firm, chef Rowley Leigh, who's in the city to open a new restaurant, says you couldn't hope to meet a nicer bunch
Paris Fashion Week: Karl Lagerfeld leads a feminist riot on 'Boulevard Chanel'

Paris Fashion Week

Lagerfeld leads a feminist riot on 'Boulevard Chanel'
Bruce Chatwin's Wales: One of the finest one-day walks in Britain

Simon Calder discovers Bruce Chatwin's Wales

One of the finest one-day walks you could hope for - in Britain
10 best children's nightwear

10 best children's nightwear

Make sure the kids stay cosy on cooler autumn nights in this selection of pjs, onesies and nighties
Manchester City vs Roma: Five things we learnt from City’s draw at the Etihad

Manchester City vs Roma

Five things we learnt from City’s Champions League draw at the Etihad
Martin Hardy: Mike Ashley must act now and end the Alan Pardew reign

Trouble on the Tyne

Ashley must act now and end Pardew's reign at Newcastle, says Martin Hardy
Isis is an hour from Baghdad, the Iraq army has little chance against it, and air strikes won't help

Isis an hour away from Baghdad -

and with no sign of Iraq army being able to make a successful counter-attack
Turner Prize 2014 is frustratingly timid

Turner Prize 2014 is frustratingly timid

The exhibition nods to rich and potentially brilliant ideas, but steps back
Last chance to see: Half the world’s animals have disappeared over the last 40 years

Last chance to see...

The Earth’s animal wildlife population has halved in 40 years
So here's why teenagers are always grumpy - and it's not what you think

Truth behind teens' grumpiness

Early school hours mess with their biological clocks
Why can no one stop hackers putting celebrities' private photos online?

Hacked photos: the third wave

Why can no one stop hackers putting celebrities' private photos online?