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MPs Pension Contributions To Rise Next Month

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MPs will have to pay more towards their pensions | PA

MPs will have to pay more towards their pensions, it emerged on Monday, when The Independent Parliamentary Standards Authority (Ipsa) announced the 1.85% hike in contributions would take effect from 1 April.

But the rise is only an interim measure while it carries out its longer-term review of pay and pensions, due to be complete by the end of 2013.

Ipsa has also decided to allow MPs to change the rate at which benefits accrue in recognition of the high contribution some make to their pensions.

MPs currently earn an annual salary of £65,738. This change in pensions comes following the coalition's decision in the 2010 spending review to increase employee contributions in public service pension schemes.

The government also announced last week that ministers would see an increase in the contribution they paid towards their ministerial pensions.

Cabinet Office minister Francis Maude said:

  • Secretaries of State, the Leader of the Opposition in the Commons and Speaker in the House of Lords will pay an additional 2.4 percentage points of pay;
  • Ministers of State, the Government Chief Whip, the Leader of the Opposition in the Lords, the Chairman of Committees of the House of Lords and the Deputy Chairman of Committees of the House of Lords will pay an additional 1.6 percentage points of pay
  • Parliamentary Under Secretaries, the Government Whips and Opposition Whips will pay an additional 1 percentage point of pay.

Speaker John Bercow caused controversy when it emerged that he had kept his "Great Office of State" pension, alongside the one he is accruing as an MP.

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