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Constitutional Reform and Governance Bill


Constitutional Reform and Governance Bill
Schedule 6 — Parliamentary standards: consequential amendments
Part 2 — Amendments of other Acts

83

 

      (3)  

In section 8(1) (interpretation) omit the definition of ““a Member’s ordinary

salary” and “a Member’s pensionable salary””.

Parliamentary and other Pensions Act 1987 (c. 45)

9          

In section 5(2) (interpretation) for the words from “such resolutions” to the

end substitute—

5

“(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.”

Ministerial and other Pensions and Salaries Act 1991 (c. 5)

10

10         

In section 4 (grants to persons ceasing to hold ministerial and other

offices)—

(a)   

omit subsection (3),

(b)   

after that subsection insert—

“(3A)   

The annual amount of the salary paid to a person in respect

15

of the office of Chairman of Ways and Means or Deputy

Chairman of Ways and Means is the difference between—

(a)   

the annual amount of the salary payable under

section 4 of the Parliamentary Standards Act 2009 to a

person holding that office, and

20

(b)   

the annual amount of the salary payable under that

section to a member of the House of Commons who

does not hold an office or position specified in a

resolution of that House for the purposes of section

4A(2) of that Act (higher salaries for holders of

25

specified offices or positions).”, and

(c)   

omit subsection (7).

Scotland Act 1998 (c. 46)

11    (1)  

Section 82 (limits on salaries of MSPs) is amended as follows.

      (2)  

In subsection (1)—

30

(a)   

before paragraph (a) insert—

“(za)   

under section 4 of the Parliamentary Standards Act

2009 (salaries of members of the House of

Commons),”, and

(b)   

in paragraph (a) for “either House of Parliament” substitute “the

35

House of Lords”.

      (3)  

In subsection (2)(b) for “(1)(a)” substitute “(1)(za), (a)”.

Government of Wales Act 2006 (c. 32)

12    (1)  

Section 21 (limits on salaries of Assembly members) is amended as follows.

      (2)  

In subsection (1)—

40

 
 

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 1 — Parliamentary and other pensions

84

 

(a)   

before paragraph (a) insert—

“(za)   

under section 4 of the Parliamentary Standards Act

2009 (salaries of members of the House of

Commons),”, and

(b)   

in paragraph (a) for “either House of Parliament” substitute “the

5

House of Lords”.

      (3)  

In subsection (2)(b) for “(1)(a)” substitute “(1)(za), (a)”.

Schedule 7

Section 52

 

Parliamentary and other pensions

Part 1

10

Parliamentary and other pensions

The Parliamentary Contributory Pension Fund etc

Continuance of Fund

1          

There is to continue to be a fund known as the Parliamentary Contributory

Pension Fund (“the Fund”).

15

Number and composition of trustees

2     (1)  

The following are to be the trustees of the Fund—

(a)   

one person appointed by the IPSA after consulting the Minister for

the Civil Service and the persons who are already trustees of the

Fund,

20

(b)   

one person appointed by the Minister for the Civil Service after

consulting the IPSA and the persons who are already trustees of the

Fund, and

(c)   

8 persons nominated and selected in accordance with arrangements

under paragraph 3 (“member-nominated trustees”).

25

      (2)  

Paragraphs 49 and 50 make transitional provision about the trustees of the

Fund.

Member-nominated trustees

3     (1)  

The trustees of the Fund must make arrangements for the nomination and

selection of member-nominated trustees.

30

      (2)  

The arrangements must provide for the member-nominated trustees to be—

(a)   

nominated as the result of a process in which all the members of a

scheme under paragraph 12 and all the members of a scheme under

paragraph 16 are eligible to participate, and

(b)   

selected as the result of a process in which some or all those persons

35

are eligible to participate.

      (3)  

The arrangements must—

 
 

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 1 — Parliamentary and other pensions

85

 

(a)   

include provision for the nomination and selection process to take

place within a reasonable period of any vacancy arising,

(b)   

include provision, where a vacancy is not filled because insufficient

nominations are received, for the nomination and selection process

to be repeated at reasonable intervals until the vacancy is filled, and

5

(c)   

include provision that, where the IPSA or the Minister for the Civil

Service so requires, a person who is not a member of a scheme under

paragraph 12 and is not a member of a scheme under paragraph 16

must have the approval of the IPSA or the Minister for the Civil

Service to qualify for selection as a member-nominated trustee.

10

      (4)  

The arrangements may include provision that where the number of

nominations received is equal to or less than the number of vacancies, the

nominees are to be treated as selected (subject to sub-paragraph (3)(c)).

Remuneration

4     (1)  

The IPSA may with the consent of the Treasury provide for remuneration

15

and allowances to be payable to the trustees of the Fund.

      (2)  

Any such remuneration and allowances are to be paid from the assets of the

Fund.

Resignation and removal of trustees

5     (1)  

A person appointed as a trustee of the Fund by the IPSA under paragraph

20

2(1)(a)—

(a)   

may resign by giving written notice to the IPSA, and

(b)   

may be removed by the IPSA after consulting the Minister for the

Civil Service and all the other trustees of the Fund.

      (2)  

A person appointed as a trustee of the Fund by the Minister for the Civil

25

Service under paragraph 2(1)(b)—

(a)   

may resign by giving written notice to the Minister for the Civil

Service, and

(b)   

may be removed by the Minister for the Civil Service after consulting

the IPSA and all the other trustees of the Fund.

30

      (3)  

A person who is a member-nominated trustee—

(a)   

may resign by giving written notice to the other trustees of the Fund,

and

(b)   

may be removed by all the other trustees of the Fund acting together.

Proceedings

35

6     (1)  

Subject to any provisions contained in a scheme under paragraph 8 because

of paragraph 8(1)(c), the trustees of the Fund may determine their own

procedure.

      (2)  

The validity of any proceedings of the trustees of the Fund is not affected

by—

40

(a)   

a vacancy among the trustees, or

(b)   

a defect in the appointment of a trustee.

 
 

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 1 — Parliamentary and other pensions

86

 

Powers of trustees

7     (1)  

The trustees of the Fund may invest the assets of the Fund, whether at the

time in a state of investment or not, in any investment whatever and may

also from time to time vary any such investments.

      (2)  

The trustees of the Fund may settle or compromise any claim or dispute

5

relating to the Fund, but—

(a)   

so far as the claim or dispute relates to a scheme under paragraph 8

or 12, they may do so only with the consent of the IPSA, and

(b)   

so far as the claim or dispute relates to a scheme under paragraph 16,

they may do so only with the consent of the Minister for the Civil

10

Service.

      (3)  

The IPSA must consult the Minister for the Civil Service before giving its

consent to the settlement or compromise of a claim or dispute relating to a

scheme under paragraph 8.

      (4)  

Section 35(1) to (4) of the Pensions Act 1995 (c. 26) (pension scheme trustees

15

must prepare statement of investment principles) applies to the trustees of

the Fund despite any provision in regulations under section 35 of that Act

which would (apart from this sub-paragraph) prevent it applying.

      (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

20

consult the IPSA and the Minister for the Civil Service.

Administration scheme

8     (1)  

The IPSA may make a scheme containing provision about—

(a)   

the administration of the Fund,

(b)   

the management of the Fund’s assets,

25

(c)   

the indemnification of the trustees (and former trustees) of the Fund,

(d)   

the proceedings of the trustees of the Fund, and

(e)   

the application of the Fund’s assets in connection with the matters in

paragraphs (a) to (d).

      (2)  

A scheme under this paragraph may in particular—

30

(a)   

include any or all of the provisions specified in paragraphs 31 to 33,

(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

35

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 7(1).

40

Procedure for administration scheme

9     (1)  

The IPSA may make a scheme under paragraph 8 only with the consent of

the trustees of the Fund.

 
 

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 1 — Parliamentary and other pensions

87

 

      (2)  

Before making a scheme under paragraph 8 the IPSA must consult—

(a)   

the Treasury,

(b)   

the Minister for the Civil Service,

(c)   

persons the IPSA considers to represent those likely to be affected by

the scheme, and

5

(d)   

any other person the IPSA considers appropriate.

      (3)  

The IPSA must send to the Speaker of the House of Commons for laying

before the House of Commons—

(a)   

any scheme made by it under paragraph 8, and

(b)   

a statement of the reasons for making the scheme.

10

      (4)  

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

10    (1)  

In respect of each financial year an Exchequer contribution is to be paid into

the Fund out of money provided by Parliament.

15

      (2)  

Subject to any provision made by the IPSA under paragraph 11, 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

20

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

25

Parliamentary and other Pensions Act 1987 (c. 45) when this paragraph

comes into force.

      (5)  

The report is to be made to—

(a)   

the trustees of the Fund,

(b)   

the IPSA,

30

(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

35

(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

40

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.

 
 

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 1 — Parliamentary and other pensions

88

 

Power to determine Exchequer contribution

11    (1)  

The IPSA may, with the relevant consents, make provision for determining

the Exchequer contribution in respect of any financial year.

      (2)  

The “relevant consents” means—

(a)   

if the result of making the provision is that the amount of the

5

Exchequer contribution in respect of any financial year is less than it

otherwise would be, the consent of the Treasury, the Minister for the

Civil Service and the trustees of the Fund, and

(b)   

otherwise, the consent of the Treasury and the Minister for the Civil

service.

10

      (3)  

The “Exchequer contribution” means the amount to be paid into the Fund

under paragraph 10.

      (4)  

Before making provision under this paragraph the IPSA must consult—

(a)   

(if sub-paragraph (2)(a) does not apply) the trustees of the Fund,

(b)   

the Government Actuary, and

15

(c)   

persons appearing to the IPSA to represent persons likely to be

affected by the provision.

      (5)  

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

20

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.

      (6)  

When the provision and the statement of reasons have been laid, the IPSA

must publish them in a way it considers appropriate.

25

      (7)  

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

30

legislation) as the IPSA considers appropriate.

MPs’ pension scheme

MPs’ pension scheme

12    (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

35

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.

40

      (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

 
 

Constitutional Reform and Governance Bill
Schedule 7 — Parliamentary and other pensions
Part 1 — Parliamentary and other pensions

89

 

(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.

5

      (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”

10

13    (1)  

For the purposes of this Schedule a person is to be treated as in service 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 (c. 13), or

(b)   

in relation to a time before that section was in force, the resolutions

15

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

20

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

25

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

30

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

14    (1)  

A scheme under paragraph 12 may in particular—

35

(a)   

include any or all of the provisions specified in paragraphs 24 to 32,

except for—

(i)   

the provision specified in paragraph 26(1), unless with the

consent of the trustees of the Fund,

(ii)   

the provision specified in paragraph 31, unless with the

40

consent of the trustees of the Fund, and

(iii)   

the provision specified in paragraph 29(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,

45

 
 

 
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