Former RBS chief executive Goodwin received GBP3m pension advance

The former chief executive of the Royal Bank of Scotland Group (RBS) Sir Fred Goodwin has received a £2.7million advance on his £16.9m pension pot.

Goodwin has reportedly withdrawn the money as the government looks for ways to claw back the benefit, worth £693,000 a year.

Treasury Minister Lord Myners told MPs on 17 March that Goodwin had been given the money but reiterated he did not negotiate, settle or approve the former executive’s pension. Myners also revealed that Goodwin had agreed to pay back the lump sum, provided RBS paid the £1.8m tax bill on the payment and that his pension pot was increased.

Goodwin has refused to hand back any of his pension despite calls from government ministers for him to do so. He left RBS in October last year following a government bail out, while the bank has since reported record losses of £24.1billion.

RBS refused to provide further comment.