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Mpc Still Raking In Huge Pension Rises

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These are the people who keep ignoring inflation and voting for negative real interest rates, that destroys the purchasing power of every £ we earn or save.

Next week they might be voting to print more money to devalue our savings and earnings even more.

Should people with inflation protected pensions working for a private company be allowed to vote for inflation for us?

Feb 2010 Accrued pension

Charles Bean £70,700

Paul Tucker £110,800

Feb 2011 Accrued pension

Charles Bean £89,200

Paul Tucker £132,600

Increases

Charles Bean £18,500 up 26%

Paul Tucker £21,800 up 20%

http://www.bankofengland.co.uk/publications/annualreport/2011/remuneration2011.pdf

Since Feb 2009

Charles Bean's pension has gone up from £55,700 to £89,200 so up 60% in 2 years

Paul Tucker's pension has gone up from £93,100 to £132,600 so up 42% in 2 years

http://www.bankofengland.co.uk/publications/annualreport/2010report.pdf

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You know what. What's the point. What on EARTH is the point anymore. No point in posting this stuff if no action's to be taken. Let's just bend over and pretend we're all smart and know about this stuff and hum and ha until our blood pressure rises and eventually do nothing about it.

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These are the people who keep ignoring inflation and voting for negative real interest rates, that destroys the purchasing power of every £ we earn or save.

Next week they might be voting to print more money to devalue our savings and earnings even more.

Should people with inflation protected pensions working for a private company be allowed to vote for inflation for us?

Feb 2010 Accrued pension

Charles Bean £70,700

Paul Tucker £110,800

Feb 2011 Accrued pension

Charles Bean £89,200

Paul Tucker £132,600

Increases

Charles Bean £18,500 up 26%

Paul Tucker £21,800 up 20%

http://www.bankofengland.co.uk/publications/annualreport/2011/remuneration2011.pdf

Since Feb 2009

Charles Bean's pension has gone up from £55,700 to £89,200 so up 60% in 2 years

Paul Tucker's pension has gone up from £93,100 to £132,600 so up 42% in 2 years

http://www.bankofengland.co.uk/publications/annualreport/2010report.pdf

Truly disgraceful increases. The public need to be made more awre of this information. I'm sure they would be outraged like me.

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I honestly don't think it matters. Those pension promises are denominated in pounds sterling and backed by the UK government. By the time they are due to be paid out either pound notes will be used to wallpaper khazis, the government will be defaulting Argentina-style, or both.

The elites can keep awarding themselves as much Monopoly money as they like. It won't help them when we all start playing a different game.

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Talk about your non-performance related pay.

given the period from feb 09 to Feb 11 then its not that much, the stock market return over the period was better, anyone with investments/pension investment over that period should easily have seen that return, it might be relevant if its the same increase this year

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given the period from feb 09 to Feb 11 then its not that much, the stock market return over the period was better, anyone with investments/pension investment over that period should easily have seen that return, it might be relevant if its the same increase this year

Does that apply to Feb 2008 to Feb 2009?

When a Mr M A King saw a 10.6% pension increase of £19,000 from £179,200 to £198,200

http://www.bankofengland.co.uk/publications/annualreport/2009report.pdf

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Does that apply to Feb 2008 to Feb 2009?

When a Mr M A King saw a 10.6% pension increase of £19,000 from £179,200 to £198,200

http://www.bankofengland.co.uk/publications/annualreport/2009report.pdf

i can see people having a beef over that period but the OP doesnt specify that period, it specifies 09/10 and during that period the increases arent exactly great given market performance

thats ignoring sterling fell further than 10.6% in 08 so really he went nowhere

i can usort of understand the view that people are conditioned that they shouldnt have to beat the market/take risk to standstill but its wrong, every perception that the state protects people will be sorely tested over the coming decade so that people actually realise they do nothing of the sort, they simply move the cost of that perceived protection/risk onto others {minus their generous cut), all thats happening is savers/accumulators are starting to realise that there is no free lunch where the states concerned after being protected at someone elses expense for decades, next week someone else will bear that cost. Its important however to recognise this is an eternal cost and purpose of state, its not just happened recently

Edited by Tamara De Lempicka

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In the case of the two Deputy Governors, their benefits are based on pensionable remuneration averaged over three years. Since Bean was appointed Deputy Governor in 2008 and Tucker in 2009, their accrued pensions are now 'catching up' to reflect the salary increases they received on promotion.

The Bank of England Court pension scheme is extremely generous (which is why it is now closed to new members) and I agree that there are potential conflicts of interest in having MPC members fully protected against the consequences of loose monetary policy which could push inflation well above the 2% target. However there is a simple accounting explanation for these numbers.

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i can see people having a beef over that period but the OP doesnt specify that period, it specifies 09/10 and during that period the increases arent exactly great given market performance

thats ignoring sterling fell further than 10.6% in 08 so really he went nowhere

i can usort of understand the view that people are conditioned that they shouldnt have to beat the market/take risk to standstill but its wrong, every perception that the state protects people will be sorely tested over the coming decade so that people actually realise they do nothing of the sort, they simply move the cost of that perceived protection/risk onto others {minus their generous cut), all thats happening is savers/accumulators are starting to realise that there is no free lunch where the states concerned after being protected at someone elses expense for decades, next week someone else will bear that cost. Its important however to recognise this is an eternal cost and purpose of state, its not just happened recently

But people who didn't get such a nice increase can only dream about going nowhere.

You must admit it must be a bit galling for people seeing their pensions buy less every day!

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In the case of the two Deputy Governors, their benefits are based on pensionable remuneration averaged over three years. Since Bean was appointed Deputy Governor in 2008 and Tucker in 2009, their accrued pensions are now 'catching up' to reflect the salary increases they received on promotion.

The Bank of England Court pension scheme is extremely generous (which is why it is now closed to new members) and I agree that there are potential conflicts of interest in having MPC members fully protected against the consequences of loose monetary policy which could push inflation well above the 2% target. However there is a simple accounting explanation for these numbers.

I knew that Charles Bean became Deputy in 2008 so assumed that explained why his rise was so much more than Tucker's.

But as you say their pension scheme is appears very generous. So it's very galling to see such as Charles Bean telling savers to stop moaning and spend their savings. It doesn't take a mathematical genius to work out that if you spend a chunk of your capital, even when (or if) rates rise, you can never accrue as much income in the future because you have less money earning interest. The effect is compounded.

http://www.telegraph.co.uk/finance/personalfinance/savings/8028884/Savers-told-to-stop-moaning-and-start-spending.html

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I knew that Charles Bean became Deputy in 2008 so assumed that explained why his rise was so much more than Tucker's.

But as you say their pension scheme is appears very generous. So it's very galling to see such as Charles Bean telling savers to stop moaning and spend their savings. It doesn't take a mathematical genius to work out that if you spend a chunk of your capital, even when (or if) rates rise, you can never accrue as much income in the future because you have less money earning interest. The effect is compounded.

http://www.telegraph.co.uk/finance/personalfinance/savings/8028884/Savers-told-to-stop-moaning-and-start-spending.html

The true scandal is the index-linked final salary element. This means that Mervyn King for example is fully protected against very low conventional gilt yields and negative I/L gilt yields which he has been instrumental in producing. It doesn't matter how low those yields go, he still gets his money.

As a result the cash equivalent of his pension has ballooned in the past few years. In Feb 2007 it was £4 million, it rose to £4.8m in 2008, and £5.4m in 2009. That's the last figure we have, but considering how gilts yields have plummeted, it's probably over £7m now.

This financial crisis is making Merv a very rich man compared to most. He's laughing all the way to his pension pot.

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The true scandal is the index-linked final salary element. This means that Mervyn King for example is fully protected against very low conventional gilt yields and negative I/L gilt yields which he has been instrumental in producing. It doesn't matter how low those yields go, he still gets his money.

As a result the cash equivalent of his pension has ballooned in the past few years. In Feb 2007 it was £4 million, it rose to £4.8m in 2008, and £5.4m in 2009. That's the last figure we have, but considering how gilts yields have plummeted, it's probably over £7m now.

This financial crisis is making Merv a very rich man compared to most. He's laughing all the way to his pension pot.

"The revised strategy is reflected in a new Statement of Investment Principles adopted during the year, a copy of which is available on request. In accordance with the new Statement of Principles

the Fund’s former holdings of quoted equities and overseas equities were liquidated during the year

and the proceeds reinvested in gilts of appropriate maturities, mostly index-linked in line with the liabilities.

Other less liquid investments are also being progressively sold

and the proceeds similarly reinvested."

Edited by northwestsmith2

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Feb 2010 Accrued pension

Charles Bean £70,700

Paul Tucker £110,800

Feb 2011 Accrued pension

Charles Bean £89,200

Paul Tucker £132,600

Accrued pension ? Is that the size of the pension pot, rather than the amount paid into it ?

If it's the pension pot then it's hardly a significant rise if they've only just started paying in.. assuming fixed contributions the 2nd year would always be a 100% increase on the year before.

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Accrued pension ? Is that the size of the pension pot, rather than the amount paid into it ?

If it's the pension pot then it's hardly a significant rise if they've only just started paying in.. assuming fixed contributions the 2nd year would always be a 100% increase on the year before.

It's the pension that they will receive each year. This is what they have accrued so far – the figures will rise as they complete more years of service.

Current cash equivalent pension pots are £2.52m for Charles Bean and £3.66m for Paul Tucker.

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Accrued pension ? Is that the size of the pension pot, rather than the amount paid into it ?

If it's the pension pot then it's hardly a significant rise if they've only just started paying in.. assuming fixed contributions the 2nd year would always be a 100% increase on the year before.

As FT says the accrued pension is their payment each year.

The cash equivalent in the reports are their pension pots

Charles "savers should stop moaning and spend their savings" Bean

2011 £2,520,400

2010 £1,972,600

2009 £1,435,700

Up £1,084,700 or 75% in 2 years

Paul Tucker

2011 £3,656,600

2010 £3,017,100

2009 £2,300,900

Up £1,355,700 or 59% in 2 years

Bean became Deputy Governor on July 1st 2008. Tucker became Deputy Governor March 2009.

Mervyn King needed a 49% rise to make his £5,356,500 in Feb 2009 worth £8,000,000 this Feb. He keeps telling us living standards in the UK are going to be squeezed for years to come - don't you just believe him?

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The latest cash equivalent of some MPC members pensions from the BoE report out today page 45

http://www.bankofengland.co.uk/publications/Documents/annualreport/2012/ar2012.pdf

Charles "savers should stop moaning and spend their savings" Bean

2012 £3,555,600 (up 41% on the year)

2011 £2,520,400

2010 £1,972,600

2009 £1,435,700

Paul "Don Diamond's phone a friend" Tucker

2012 £5,006,600 (up 36.9% on the year)

2011 £3,656,600

2010 £3,017,100

2009 £2,300,900

The Bollinger is out today for Paul Tucker hitting the magic £5m mark. It must be great to keep interest rates so low and ignore inflation but see your own pension pot surging up as a result. Then as if other pensioners didn't have it bad enough do another dose of QE to trash their annuties even more. A £100k pot now buys a £6k annuity down from £14k in the 90's and the average pension pot is just £30k

Bean became Deputy Governor on July 1st 2008. Tucker became Deputy Governor March 2009 which accounts for some of the rises

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