Lord Bruce of Doningtonasked Her Majesty's Government:
Whether they will provide particulars of the pension arrangements made by the European Communities for the benefit of Members of the Commission: namely, Presidents, Vice-Presidents and Members respectively on their retirement from office and the taxation rules appropriate to the sums paid.
§ Baroness Chalker of WallaseyRegulation No. 422/67/EEC, 5/67/EURATO, of 25th July 1967 (Official Journal L 187 of 8th August 1967) and subsequent modifications to it, sets out the salary and pension structure of the President, Vice-Presidents and Members of the European Commission.
For three years only after the end of their service (under the Maastricht Treaty the length of service will be for a renewable term of five years), they receive a transitory allowance determined by their final salary and the length of service. This ranges between 40 per cent of final salary for service of less than two years and 65 per cent. for service of 15 years or more.
When they reach 65 years of age, they are entitled to a pension for life determined by the sum of 4.5 per cent. of their final annual salary for each year of service (and 1/12 of this sum for each additional completed month), up to a maximum of 70 per cent. of their final salary. This pension can be obtained between the ages of 60 and 65 determined by a co-efficient between 70 per cent. and 95 per cent. of the final pension.
From these sums are deducted amounts (up to 2 per cent.) for social security medical insurance and sums due under the Community income tax and temporary levy.