2 Pensions
2.1. Regulations governing the Parliamentary Contributions
Pension Fund should incorporate the recommendation in the Top
Salary Review Body Report presented on 28 June 1991 that Member
contributions should be six per cent. of salary.[5]
(18 July 1991)
2.2. The annual amount of the pension payable to
a Member shall be a sum equal to the aggregate of the following
amounts—
a) An amount equal to one-fortieth of the relevant
terminal salary multiplied by the number of complete years comprised
in his aggregate period of reckonable service as a Member, and
b) An amount bearing the same proportion as one-fortieth
of the relevant terminal salary as the number of days comprised
in that period after the end of the last complete year comprised
in it bears to three hundred and sixty-five.[6]
(21 July 1980; 5 July 2001)
2.3. The Trustees of the Parliamentary Contributory
Pension Fund have power to provide a scheme by which Members may
enhance their pensions by making additional voluntary contributions,
and to appoint a provider for the scheme. (4 November 1993)
2.4. The contribution rate to the parliamentary pension
scheme for those scheme members who have opted for the 1/40th
accrual rate should be 10 per cent with effect from 1 April 2004.
(3 November 2004)
2.5. There should be a cost-neutral package of changes
to the parliamentary pension scheme consisting of
a) The introduction of a new option for members
of the scheme to pay a member contribution rate of 5.5 per cent
of salary for a pension building up at an accrual rate of 1/60th
of final salary for each year of service, as an alternative to
the existing accrual rate options; and
b) Changes to the ill-health retirement provisions,
as proposed by the Trustees, including two different levels of
benefit depending on the degree of a scheme member's incapacity,
and the periodic review of ill-health pensions. (17 December
2008)
2.6. Regulations governing the Parliamentary Contributory
Pensions Fund shall incorporate the following recommendations
of the Review Body on Senior Salaries Report laid before Parliament
on 16 March 2001—
a) That the lump sum death in service payment
be four times annual basic salary;
b) That service in the Scottish Parliament, National
Assembly for Wales and the Northern Ireland Assembly, other than
such service concurrent with service at Westminster, should count
towards the qualifying period for an early retirement pension;
and
c) That the rules of the pension scheme should
be revised in respect of benefits for children to ensure that
all dependent children receive equality of treatment. (5 July
2001)
2.7. Arrangements for pension sharing on divorce
or on dissolution of a civil partnership should be made pursuant
to the Welfare Reform and Pensions Act 1999. (5 July 2001)
2.8. Regulations governing the Parliamentary Contributory
Pensions Fund shall incorporate the following recommendations
of the Review Body on Senior Salaries Report laid before Parliament
on 21 October 2004—
a) That pensions calculated on the same basis
as pensions for widows and widowers should be introduced for surviving
unmarried partners of members in service on or after 3 November
2004;
b) That pensions for the widows, widowers and
unmarried partners of members in service on or after 3 November
2004 should be payable for life;
c) That the early retirement provisions which
permit a member who has accrued at least 15 years service to retire
before the age of 65 on favourable terms should be removed for
those who become members of the scheme after 3 November 2004 and
phased out for existing members from 1 April 2009, or the day
after the General Election after next, whichever is the later.
(3 November 2004)
5 The Parliamentary Pensions (Amendment) Regulations
2002 (S.I., 2002, No. 1807) increased the contribution rate from
6 per cent to 9 per cent of salary. Members and office holders
were given the option to continue to contribute at the rate of
six per cent. Back
6
The Parliamentary Pensions (Amendment) Regulations 2002 (S.I.,
2002, No. 1807) increased the accrual rate from fiftieths to fortieths.
Members and office holders were given the option to continue to
accrue their pension in fiftieths. Back
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