MINISTERS must stop the “Whitehall retirement racket” with nearly 40 civil servants have pension pots worth more than £1 million, campaigners say.
Lucrative retirement deals that are far more generous than those in the private sector must be reviewed immediately, ministers have been warned.
Ministers have been warned to stop the ‘Whitehall retirement racket’ immediately as 40 civil servants have pension pots worth more than £1 million
Ex-Foreign Office mandarin Lord McDonald enjoys the largest pot valued at a £2.2 million, research shows.
Current Cabinet Secretary Simon Case, who was the country’s top civil servant during the Partygate affair, has built up a pension pot of £450,000, figures show.
Analysis also shows that 187 of the most senior civil servants have a cumulative pension pot of £122.9 million – an average of £657,128 for 2020-21.
The figures come after pensions minister Guy Opperman recently said gold-plated public sector pensions should be reformed.
Helen Morrissey, Senior Pensions Analyst, Hargreaves Lansdown, last night said: “Public sector schemes provide pensions that are at least double and in some cases triple the size of those from a private sector scheme.
“The pension you get from a public sector scheme – known as defined benefit – is based on how much you earn and how long you worked there. As long as you pay your contributions, your pension is guaranteed.
“For the majority of private sector schemes, your pension is based on the value of your pot at retirement.”
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Working taxpayers and pensioners feeling the pinch will be shocked at the extent of these million pound pension pots.
“Senior civil servants enjoy unfunded retirement packages that dwarf the deals for most private sector workers, despite the taxpayers who pay for them seeing their own savings squeezed.
“Politicians need to put an end to the Whitehall retirement racket and crack down on overgenerous pension arrangements in the public sector.”
A government spokesperson said: “Pay and benefits for Senior Civil Servants reflect the level of responsibility associated with their role.
“These are transparent and published every year in each department’s accounts.”
