Parliamentary Contributory Pension Fund

Andrew Love Excerpts

Monday 17th October 2011 Commons Chamber

[Sir George Young]

The administration will be performed by the trustees; there is no change in that. The contribution rates and ultimately the shape of the scheme will be determined by IPSA, which will set the rules. The trustees will continue to administer the scheme, with some slight change in their membership to reflect IPSA’s new involvement.

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

Will the Leader of the House give way?

[Sir George Young]

If I may, I will make a little more progress, and then I will give way.

The amendment tabled by my hon. Friend the Member for Christchurch (Mr Chope) suggests that the parts of the motion relating to the Hutton review should be removed. Its implication is that our scheme should not be treated the same as other public sector schemes, and I do not think our constituents would welcome such an interpretation.

--- Later in debate ---

[Sir George Young]

Let me make a bit more progress and then I will give way.

The motion also states that

“IPSA should introduce…a new pension scheme for hon. Members which is informed by the Commission’s findings”

by 2015. That is a similar timetable to that for the rest of the public service. However, as with other public service pension reform, changes should neither be retrospectively made nor have an impact on past benefits.

[Mr Love]

In his final report, Lord Hutton spoke warmly about the continuation of defined benefit schemes in the public sector. Is the Leader of the House fully aware of that, and does he support that recommendation?

[Sir George Young]

Indeed; the Government welcomed Lord Hutton’s report, including the interim report, the final report and the budget. He made it clear that he wanted to retain a defined benefit scheme, and on that basis negotiations are continuing. IPSA will be mindful of that recommendation by Hutton—and, indeed, of the hon. Gentleman’s views.

The Constitutional Reform and Governance Act already provides full protection for pension benefits already earned, including a link to the salary on leaving the scheme, so any new scheme would apply only to future service. Furthermore, the legislation includes comprehensive provisions requiring IPSA to consult widely before making any changes to parliamentary pensions.