House of Lords Staff Pension Scheme

4.1 Since 6 April 1988 membership of the House of Lords Staff Pension Scheme (HLSPS), which is operated by analogy with the Principal Civil Service Pension Scheme, has not been a condition of employment. Instead, staff may contribute to the State Earnings Related Pension Scheme (SERPS) or to a personal pension scheme. Each provides a pension on top of the ordinary flat-rate state pension but does so in a different way by providing a range of benefits at varying costs.

4.2. Membership of the House of Lords Staff Pension Scheme is, however, automatic for eligible staff who do not decide to opt out. Casual appointments are excluded from the Scheme but casual staff may be eligible for a partnership pension account (see paragraph 4.8) or to contribute to a Stakeholder pension (see paragraphs 4.5-4.7).

4.3. Normal age for retirement is 65, but members of staff may retire and receive their superannuation benefits at any time after age 60. Early retirement before age 60 is possible in certain circumstances (see paragraph 14.6).

4.4. The terms of the pension scheme differ depending on when staff who took up employment in the House. For staff joining on or after 1 October 2002 the pension scheme is called "Premium". Staff in post before 1 October were given the option of remaining in the old pension scheme (called "Classic") or transferring to the new Premium scheme either with all their previous service or only in respect of service after 1 October 2002 ("Classic Plus"). Once having made their choice such staff are not eligible to change it. Details of each of the pension schemes are available from the Human Resources Office.

4.5. In accordance with the provisions of the Welfare Reform and Pensions Act 1999, the House offers staff of the House who are not eligible for membership of the HLSPS access to a designated stakeholder pension provider. Where the member of staff chooses to contribute to a stakeholder pension the House will deduct employee contributions from the member of staff through the payroll system and pay the contributions direct to the to the stakeholder provider, though the House will not itself make any pension contribution. Staff who have opted out of the HLSPS are not eligible for stakeholder access to the designated HLSPS provider, though they are able to contribute to a stakeholder pension independently.

4.6. The House also offers members of the HLSPS earning less than £30,000 pa access on a concurrent basis to the designated stakeholder pension provider, as an alternative or supplement to the House of Lords staff AVC scheme. The House will deduct contributions from the employee's pay and pay them to the provider, subject to a maximum contributions limit (currently £3,600).

4.7. Staff wishing to contribute to a stakeholder pension, on either of the bases mentioned in paragraphs 4.5 or 4.6 above should consult the Human Resources Office.

Partnership pension accounts

4.8 Staff who are ineligible for membership of the HLSPS may also be offered access to a partnership pension account. This is a stakeholder pension held with one of a panel of designated providers to which the House of Lords will make a contribution based on the age of the employee (ranging from 3% of pensionable salary in the case of employees under 21 to 12.5% for those aged 46 or over). If the employee makes a contribution the House of Lords will match it up to a maximum additional 3% of pensionable salary. Partnership pension accounts are also available to staff who have been offered and declined membership of the HLSPS. Staff will be advised if they are eligible for a partnership pension account.