Contributions made by the Bank of England to its employees' retirement packages have been raised from 24.2% to 41.3% of pensionable earnings.

The scale of the rise, revealed in its 2006 report, has caused astonishment. One investment consultant said: "I've never come across a contribution as high as this, except with the odd executive scheme. Private and public sector service contributions tend to be closer to 20%." The new Bank of England contribution does not include scheme administration payments of 3%. The Bank has promised to eliminate its £299m scheme deficit by making four annual payments of £52.5m, followed by six annual sums of £26.7m. Pension contributions made to members of the nine-strong monetary policy committee, which deliberates on interest rate strategy, have been restricted to 15%. It is understood some members have started to lobby for an increase to 30%. A Bank of England spokesman refused to comment. A pension fund trustee said the Bank was keen to comply with the requirements of the Pension Regulator. He said: "The contributions being made are near the top of the scale but I suspect we'll find other schemes going the same way over time." A second consultant was more critical. He said: "I'm not sure employees would value these contributions as much as they should. The Bank of England might have done better to encourage its staff to leave the scheme instead." This step has been taken by the Royal Bank of Scotland, which is offering 15% of salary to individuals prepared to leave its final salary scheme. Sources close to the Bank said the rise in service contributions was the result of an actuarial assessment of prospective longevity. It has decided to base future asset gains on a risk-free rate of return. It is understood the age profile of Bank of England employees tends is relatively mature. The benefits paid by the Bank's scheme to members are reasonably generous.