FSA chairman Adair Turner has confirmed that FSA staff moving across to the new prudential authority will not be included in the Bank of England’s pension scheme.
The Government announced last week that the FSA is being transformed into a new prudential authority, which will be a subsidiary of the Bank of England. A new body, the Consumer Protection and Markets Authority, will regulate all authorised firms.
Speaking last week at the FSA annual public meeting, Turner said the new body will operate autonomously with its own pay and pension arrangements, separate from the Bank of England.
Many Bank of England staff have a final-salary pension scheme, which closed to new members in September 2007. The bank now offers a career-average pension scheme to staff. On April 1, the FSA stopped all future accruals to its staff final-salary pension scheme. The scheme has been closed to new employees at the regulator since June 1998 when the FSA was set up and was replaced by a moneypurchase scheme.
A large proportion of FSA staff likely to be affected by the move are former Bank of England employees.