Parliamentary Pensions (Hansard, 16 March 2001)

§ Mrs. Beckett

As decided in the last Parliament, the Senior Salaries Review Body (SSRB) now carries out regular reviews of the Parliamentary Contributory Pension Fund (PCPF), generally timed to coincide with the triennial valuations of the PCPF by the Government Actuary. The SSRB has published its report today, and a copy has been placed in the Library of the House. Copies are also available in the Vote Office. I am most grateful to the Review Body for their thoughtful and thorough report.

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The SSRB has made eight recommendations: (1) that the lump sum death in service payment be increased from three times annual basic salary to four times annual basic salary and that the increased cost of around 0.4 per cent. be borne by the Exchequer; (2) that the rules should be amended to remove the provision for curtailing the pension of a widow/widower of a deceased Member on remarriage or cohabitation. Any consequential increase in the contribution rate should be borne by the Exchequer; (3) that the service in the Scottish Parliament, National Assembly for Wales and the Northern Ireland Assembly, other than such service concurrent with service at Westminster, should count towards the qualifying period for an early retirement pension; (4) that the Trustees of the PCPF should explore with the managers of the MEPs' pension scheme and the Trustees of the pension schemes for Members of the devolved assemblies the merits of establishing a Parliamentary Transfer Club; (5) that the rules of the scheme should be revised in respect of benefits for children to ensure that all dependent children receive equality of treatment; (6) equality proofing of the PCPF rules to ensure that there is no systemic discrimination; (7) that an exception to the abatement rules should be made for former Members of the House of Commons in receipt of a pension as an MP who become paid office holders in the House of Lords. This exception to abatement should not extend to any part of the pension earned as a paid office holder in the Commons. (8) that the Trustees should canvas the views of Members of the PCPF on the issue of survivor pensions for unmarried partners.

As required by section 2 of the Parliamentary and other Pensions Act 1987 I shall consult about the changes to the scheme with the Trustees of the PCPF and with other interested parties. As is customary, the Government will hold a debate on an amendable motion. This will give the House a chance to consider this report and the draft regulations implementing the SSRB recommendations, also the associated report of the Government Actuary, which will, I understand, be published shortly.

It will be helpful for the House to know that the Government are proposing to accept all these recommendations except for recommendation 2. The cessation of widow(er) pension on remarriage or cohabitation is a common provision of public service pension schemes and is a provision which is generally only removed at member cost.

In relation to recommendation 8, the Government would expect the costs associated with any extension of survivor pensions to unmarried partners to be borne by the members of the PCPF, and not by the Exchequer.