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(5) Any provision in regulations under that section which would require the trustees of the Fund to consult the employer applies as if it required them to consult the IPSA and the Minister for the Civil Service.

Administration scheme

3 (1) The IPSA may make a scheme containing provision about-

(a) the administration of the Fund,

(b) the management of the Fund's assets,

(c) the number, qualification and proceedings of the trustees of the Fund, and

(d) the application of the Fund's assets in connection with the matters in paragraphs (a) to (c).

(2) A scheme under this paragraph may in particular-

(a) include any or all of the provisions specified in paragraphs 26 to 28,

(b) make different provision in relation to different cases, circumstances or persons,

(c) make such incidental, consequential and transitional provision (other than provision modifying an enactment or subordinate legislation) as the IPSA considers appropriate.

(3) In sub-paragraph (2)(c) the reference to subordinate legislation does not include a scheme under this paragraph.

(4) No provision of a scheme under this paragraph is to be construed as restricting the powers of the trustees under paragraph 2(1).

Procedure for administration scheme

4 (1) Before making a scheme under paragraph 3 the IPSA must consult-

(a) the Treasury,

(b) the Minister for the Civil Service,

(c) the trustees of the Fund,

(d) persons the IPSA considers to represent those likely to be affected by the scheme, and

(e) any other person the IPSA considers appropriate.

(2) The IPSA must send to the Speaker of the House of Commons for laying before the House of Commons-

(a) any representations made to it by the trustees of the Fund in response to consultation under this paragraph,

(b) any scheme made by it under paragraph 3, and

(c) a statement of the reasons for making the scheme.

(3) When the scheme and the statement of reasons have been laid, the IPSA must publish them in a way it considers appropriate.

Exchequer contribution to Fund

5 (1) In respect of each financial year an Exchequer contribution is to be paid into the Fund out of money provided by Parliament.

(2) Subject to any provision made by the IPSA under paragraph 6, the amount of the contribution for any financial year is to be calculated in accordance with recommendations for that year contained in a report made by the Government Actuary under this paragraph.

(3) The Government Actuary must make a report under this paragraph as soon as practicable after the beginning of-

(a) the period of three years beginning with the relevant date, and

(b) each succeeding period of three years.

(4) The "relevant date" means the date immediately following the end of the three year period which is current for the purposes of section 3 of the Parliamentary and other Pensions Act 1987 when this paragraph comes into force.

(5) The report is to be made to-

(a) the trustees of the Fund,

(b) the IPSA,


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(c) the Minister for the Civil Service, and

(d) the Treasury.

(6) The report must-

(a) report on the general financial position of the Fund at the beginning of the period of three years in which the report is made, and

(b) make a recommendation as to the rate at which (subject to any subsequent report under this paragraph) Exchequer contributions should be paid into the Fund in respect of any financial year beginning after the report is made.

(7) The rate is to be expressed by reference to such matters as the Government Actuary considers appropriate.

(8) A copy of every report made by the Government Actuary under this paragraph is to be laid before the House of Commons.

Power to determine Exchequer contribution

6 (1) The IPSA may, with the consent of the Treasury and the Minister for the Civil Service, make provision for determining the Exchequer contribution in respect of any financial year.

(2) The "Exchequer contribution" means the amount to be paid into the Fund under paragraph 5.

(3) Before making provision under this paragraph the IPSA must consult-

(a) the trustees of the Fund, and

(b) persons appearing to the IPSA to represent persons likely to be affected by the provision.

(4) The IPSA must send to the Speaker of the House of Commons for laying before the House of Commons-

(a) any representations made by the trustees of the Fund in response to consultation under this paragraph,

(b) any provision made by the IPSA under this paragraph, and

(c) a statement of the reasons for making the provision.

(5) When the provision and the statement of reasons have been laid, the IPSA must publish them in a way it considers appropriate.

(6) Provision under this section may-

(a) apply to a financial year which has already ended or which has begun before the making of the provision, and

(b) make such incidental, consequential and transitional provision (other than provision modifying an enactment or subordinate legislation) as the IPSA considers appropriate.

MPs' pension scheme

MPs' pension scheme

7 (1) The IPSA may make a scheme containing provision about the application of the assets of the Fund in or towards the provision of pensions for or in respect of persons with service as a member of the House of Commons, in respect of that service.

(2) A scheme under this paragraph may not provide for the application of any of the assets of the Fund in or towards the provision of pensions for or in respect of persons with service as Lord Chancellor.

(3) A scheme under this paragraph may not provide for the application of any of the assets of the Fund in or towards the provision of pensions for or in respect of a person ("P") with service as-

(a) Prime Minister and First Lord of the Treasury, or

(b) Speaker of the House of Commons.

(4) Sub-paragraph (3) does not apply if P elects, in accordance with provision made by the scheme, to contribute to the Fund out of P's salary as a member of the House of Commons while holding the office of Prime Minister and First Lord of the Treasury or Speaker of the House of Commons.


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(5) The provision mentioned in sub-paragraph (4) may not provide for a pension payable under the scheme for or in respect of P to be calculated by reference to service as a member of the House of Commons before 28 February 1991.

Meaning of "service as a member of the House of Commons"

8 (1) For the purposes of this Schedule a person is to be treated as a member of the House of Commons at any time if at that time a salary is or was payable to the person under-

(a) section 4 of the Parliamentary Standards Act 2009, or

(b) in relation to a time before that section was in force, the resolutions of

the House of Commons then in force relating to the remuneration of its members.

(2) For the purposes of this Schedule service as a member of the House of Commons includes service as the holder of a qualifying office or position.

(3) In relation to a time when a determination under section 4(4) of the Parliamentary Standards Act 2009 is in effect a "qualifying office or position" means an office or position in respect of which, because of section 4A(2) of that Act, a higher salary is payable than the salary payable to members of the House of Commons generally.

(4) In relation to a time before the first determination under section 4(4) of the Parliamentary Standards Act 2009 comes into effect a "qualifying office or position" means-

(a) the office of Chairman of Ways and Means and the office of Deputy Chairman of Ways and Means,

(b) an office or position in respect of which, under the resolutions of the House of Commons then in force relating to the remuneration of its members, a higher salary was payable than the salary payable to members of the House of Commons generally.

MPs' pension scheme: further provision

9 (1) A scheme under paragraph 7 may in particular-

(a) include any or all of the provisions specified in paragraphs 19 to 27, except for the provision specified in paragraph 24(2),

(b) make provision which has effect from a date earlier than the date the scheme is made,

(c) make provision in relation to service before the passing of this Act,

(d) make different provision in relation to different cases, circumstances or persons, and

(e) make such incidental, consequential and transitional provision (other than provision modifying an enactment or subordinate legislation) as the IPSA considers appropriate.

(2) In sub-paragraph (1)(e) the reference to subordinate legislation does not include a scheme under paragraph 7.

Procedure for MPs' pension scheme

10 (1) Before making a scheme under paragraph 7 the IPSA must consult-

(a) the Treasury,

(b) the Minister for the Civil Service,

(c) the trustees of the Fund,

(d) persons the IPSA considers to represent those likely to be affected by the scheme,

(e) the Government Actuary,

(f) the Review Body on Senior Salaries, and

(g) any other person the IPSA considers appropriate.

(2) The IPSA must send to the Speaker of the House of Commons for laying before the House of Commons-

(a) any representations made to it by the trustees of the Fund in response

to consultation under this paragraph,

(b) any scheme made by it under paragraph 7, and

(c) a statement of the reasons for making the scheme.


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(3) When the scheme and the statement of reasons have been laid, the IPSA must publish them in a way it considers appropriate.

(4) The reference in sub-paragraph (1)(f) to the Review Body on Senior Salaries-

(a) if the name of the body is changed, is to be treated as a reference to the body by its new name, and

(b) if the functions of the body (or substantially corresponding functions) become functions of a different body, is to be treated as a reference to the body by which those functions are exercisable.

(5) Any question arising under sub-paragraph (4) is to be determined by the Speaker of the House of Commons.

Ministers' etc pension scheme

11 (1) The Minister for the Civil Service may make a scheme containing provision about the application of the assets of the Fund in or towards the provision of pensions for or in respect of persons with service to which this paragraph applies, in respect of that service.

(2) This paragraph applies to service as-

(a) the holder of an office specified in Parts 1 to 4 of Schedule 1 to the Ministerial and other Salaries Act 1975 (ministerial offices),

(b) the holder of an office specified in Part 1 of Schedule 2 to that Act (Opposition leaders and whips),

(c) Speaker of the House of Lords,

(d) Chairman of Committees of the House of Lords,

(e) Deputy Chairman of Committees of the House of Lords.

(3) A scheme under this paragraph may not provide for the application of any of the assets of the Fund in or towards the provision of pensions for or in respect of a person with service as-

(a) Lord Chancellor,

(b) Prime Minister and First Lord of the Treasury, or

(c) Speaker of the House of Commons.

Ministers' etc pension scheme: further provision

12 (1) A scheme under paragraph 11 may in particular-

(a) include any or all of the provisions specified in paragraphs 19 to 27 and 29,

(b) make provision which has effect from a date earlier than the date the scheme is made,

(c) make provision in relation to service before the passing of this Act (including, in relation to service within paragraph 11(2)(a) or (b), service before the passing of the Ministerial and other Salaries Act 1975),

(d) make different provision in relation to different cases, circumstances or persons, and

(e) make such incidental, consequential and transitional provision (other than provision modifying an enactment or subordinate legislation) as the Minister considers appropriate.

(2) In sub-paragraph (1)(e) the reference to subordinate legislation does not include a scheme under paragraph 11.

Procedure for Ministers' etc pension scheme

13 (1) Before making a scheme under paragraph 11 the Minister for the Civil Service must consult-

(a) the IPSA,

(b) the Government Actuary,

(c) the trustees of the Fund, and

(d) any other person the Minister considers appropriate.

(2) The Minister for the Civil Service must lay before the House of Commons-

(a) any representations made to the Minister by the trustees of the Fund in response to consultation under this paragraph,


1 Feb 2010 : Column 106

(b) any scheme made by the Minister under paragraph 11, and

(c) a statement of the reasons for making the scheme.

(3) When the scheme and the statement of reasons have been laid, the Minister must publish them in a way the Minister considers appropriate.

Supplementary provision

Protection of accrued rights

14 (1) This paragraph applies where-

(a) the IPSA makes a scheme under paragraph 7, or

(b) the Minister for the Civil Service makes a scheme under paragraph 11,

(the "new scheme").

(2) The new scheme must not make any provision in relation to an accrued right which puts a person in a worse position than the person would have been in apart from the provision.

(3) Sub-paragraph (2) does not apply if the person making the new scheme is satisfied that-

(a) the person ("P") in respect of whose service the right has accrued (or will have accrued by the time the provision comes into force) is in service when the new scheme is made, or

(b) the new scheme gives P (or a person acting on P's behalf) the opportunity to opt for the accrued right to remain unaffected by the provision.

(4) If P has died, the references in sub-paragraph (3)(b) to P are to be read as references to the persons who because of the accrued right are entitled, or may become entitled, to a pension or to the benefit of any pension.

(5) In sub-paragraph (3)(a) "service" means-

(a) where the new scheme is a scheme under paragraph 7, service as a member of the House of Commons, and

(b) where the new scheme is a scheme under paragraph 11, service to which that paragraph applies.

Meaning of "accrued right"

15 (1) This paragraph applies for the interpretation of paragraph 14.

(2) "Accrued right", in relation to the new scheme, means so much of any right or entitlement to or in respect of a pension payable out of the Fund as-

(a) has accrued under the existing scheme in respect of service which was before the making of the new scheme, or

(b) by the time the new scheme comes into force, will have accrued under the existing scheme in respect of service of a person within sub-paragraph (3).

(3) A person is within this sub-paragraph if the person's service includes a period of service before the making of the new scheme.

(4) Where the new scheme is a scheme under paragraph 7, in this paragraph-

(a) "existing scheme" means the schemes under paragraph 7 in force, or made but not yet in force, when the new scheme is made, and

(b) "service" means service as a member of the House of Commons.

(5) Where the new scheme is a scheme under paragraph 11, in this paragraph-

(a) the "existing scheme" means the schemes under paragraph 11 in force, or made but not yet in force, when the new scheme is made, and

(b) "service" means service to which that paragraph applies.

(6) In this paragraph references to a right or entitlement include a future or contingent right or entitlement.


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