MPs to lose control of their pensions in wake of criticism

Leader of the Commons Sir George Young said yesterday he would be tabling a motion over the next few days transferring control to the Independent Parliamentary Standards Authority.

The text will make clear that MPs’ contribution rates should be increased in line with the rest of the public sector from next April, he added.

“Once responsibility for MPs’ pensions has been transferred to Ipsa, MPs will have finally relinquished the power to set the terms of their own remuneration,” Sir George said in a statement to the Commons.

“Given the failure of self-regulation, which so damaged Parliament’s reputation, this represents a significant step in drawing a line under the problems of the past and rebuilding public confidence.”

The motion will propose that Ipsa establishes a new pension scheme for MPs by 2015.

The Government has indicated its view that the current final salary terms – which can see politicians retire after 20 years in Parliament with an index-linked income of half their pay – should be scrapped.

However, there is speculation that it could be replaced with an average salary scheme, as is happening in much of the rest of the public sector.

As all MPs receive the same salary, such a switch would be unlikely to make much difference to their benefits.