MPs Pensions and more....

Discussion in 'Current Affairs' started by thingy, Sep 21, 2009.

Welcome to the Navy Net aka Rum Ration

The UK's largest and busiest UNofficial RN website.

The heart of the site is the forum area, including:

  1. 1) PENSIONS

    Leader of the House

    Parliamentary Pensions

    The Leader of the House of Commons (Ms Harriet Harman): On 25 June the House endorsed a package of changes to the Parliamentary pension scheme, backdated to 1 April 2009, consisting of:

    (1) an increase in member contribution rates

    (a) from 10 to 11.9 per cent. for a pension building up at an accrual rate of 1/40th of final salary for each year of service,

    (b) from 6 to 7.9 per cent. for a pension building up at an accrual rate of 1/50th, and

    (c) from 5.5 to 5.9 per cent. for a pension building up at an accrual rate of 1/60th.

    (2) the application of the scheme’s maximum pension limit of two thirds of final salary to all scheme members for future service.

    The rise in member contribution rates will mean an increase in the net (after tax relief) monthly contribution made by most MPs of approximately £62. Because the increase will be backdated to 1 April, arrears will be payable when the changes are implemented by the Trustees.

    This package is judged by the Government Actuary to produce savings of 2.9 per cent. of payroll. The House also called on me to bring forward further proposals which will make additional savings of 1.9 per cent. of payroll, so that the Exchequer contribution to the scheme for 2009-10 will be capped at its 2008-09 level. I plan to put proposals before the House in October. These could include a further increase in member contribution rates, an increase in pension age, changes to the benefits payable on death, or a combination of all these measures.

    HC Deb 14 Sep 2009 c146WS


Share This Page