In written evidence to Treasury Select Committee chairman John McFall, McKillop says Treasury Minister Lord Myners was made aware of what Goodwin’s pension arrangements would be.
In a recent TSC hearing, Myners said the RBS remuneration committee doubled Goodwin’s pension by “framing” Goodwin’s exit as a request to retire rather than a requirement to retire, meaning he could automatically be entitled to his full pension payout at 50.
But McKillop said: “Mr Scott is certain that he discussed each element of the proprosed terms of departure set out in the remuneration paper, including the pension.
“As well as referring to the undiscounted effect, and the consequence of early retirement and deemed service for the amount of the pension, Mr Scott also gave Lord Myners (in the conversation on 12 October 2008) a range of £15m to £20m as being Mr Scott’s best estimate of what the pension liability might be.”
McKillop also said that Lord Myners was “not correct” in saying that Scott indicated that disclosure of Sir Fred’s pension “could be spread over a couple of years to deflect adverse comment”.
McKillop added: “At no stage did Lord Myners or any other representative of the Government ask the RBS directors to attempt to alter any of the contractual terms relating to Sir Fred’s pension. Nor did Lord Myners attempt to discuss the matter with Sir Fred, as he did with the payment in lieu of notice.”