Request the utimate source of Bank of England pension scheme deficit paymants

Mike Post made this Freedom of Information request to Bank of England

This request has been closed to new correspondence. Contact us if you think it should be reopened.

The request was successful.

Dear Bank of England,

Both the Governor of the Bank of England and the Bank's HR Director have claimed in letters to MPs that the Bank's pension scheme is a funded private sector scheme [just like the Airways Pension Scheme (APS)] and is therefore not a drain on the public purse.

But the B o E scheme is in deficit and the Bank paid £52.5 million in March 2008, further contributions of £26.7 million being paid in March 2009,March 2010 and March 2011 and a further 3 payments of £26.7 million being due between March 2012 and March 2014. The additional deficit reduction contribution of £42.5 million was paid in February 2009.

Can you please confirm whether or not [unlike APS] the ultimate source of these deficit payments into the Bank's pension scheme is the public purse and therefore the taxpayer?

Yours faithfully,

Mike Post

Enquiries, Bank of England

Dear Mr Post

We acknowledge receipt of your email dated 29 July (our ref FF 25734). We will reply in due course.

If you have any queries please contact the Bank's Public Information and Enquiries Group on 020 7601 4878.

Yours sincerely

Public Information and Enquiries Group
Bank of England | Threadneedle Street | London | EC2R 8AH | +44 20 7601 4878
[Bank of England request email]

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Footman, John, Bank of England

Dear Mr Post

Thank you for your enquiry of 29th July. This crossed with Ben Norman's letter to you of the same date, responding to an earlier request, and I have seen your subsequent reply. I take it from that exchange that you have the information you need on the Bank's finances and that the Freedom of Information request is no longer required. Please let me know if this is mistaken, however.

With best wishes,

John Footman

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Dear Footman, John,

You are quite correct.

Many thanks.

Yours sincerely,

Mike Post

Andrew thomas left an annotation ()

The BoE pension contributions are tax-exempt and the lump sums paid from operating surplus nto the pension fund would otherwise be paid to the treasury, so the taxpayer ultimately bears the losses to the treasury as with any tax aviodance scheme.