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October 23, 2007

U.K.: 'Bad News' Whitehall Chief To Get £2.7m Pension

Sir Richard Mottram will receive a retirement package worth £2.7m

By Robert Winnett

LONDON, England (The Telegraph), October 23, 2007:

The civil servant who became infamous for declaring his department was doomed is to pick up the most generous public-sector pension ever awarded — worth a total of almost £2.7 million — when he retires this month.

Sir Richard Mottram, who currently oversees the country's intelligence and national security policy, will receive a tax-free lump sum of £335,000 and an annual pension of more than £110,000.

Accounts published by the Cabinet Office reveal the total value of his retirement package, now calculated to be worth £2.66 million. His annual payouts will rise with inflation, while his wife will continue to benefit after he dies.

Sir Richard gained infamy in 2001 for his comments after Jo Moore, a special adviser, advised officials to "bury" bad news in the aftermath of the Sept 11 attacks. He was heard saying: "We're all f***ed, I'm f***ed, you're f***ed, the whole department is f***ed. It's the biggest cock-up ever. We're all completely f***ed."

The 61-year-old, who earns around £225,000 a year, has enjoyed a 39-year career in the civil service, with spells in the Defence, Work and Pensions and Transport departments.

Public-sector pensions cost taxpayers about £18 billion a year. Each family pays the equivalent of 91p in tax for public-sector pensions for every £1 they put towards their own retirement plans.

Corin Taylor, of the TaxPayers' Alliance, added: "It's not surprising that public-sector pension liabilities are so high when senior civil servants receive such enormous sums."

© Copyright of Telegraph Media Group Limited 2007.