HL Deb 13 March 2003 vol 645 cc203-5WA
Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

For how long holders of each of the following offices have to serve to receive their maximum pension entitlement:

  1. (a) Lord Chief Justice;
  2. (b) High Court judge;
  3. (c) Cabinet Secretary;
  4. (d) Speaker of the House of Commons;
  5. (e) Prime Minister; and
  6. (f) Chancellor of the Exchequer. [HL1601]

Lord Williams of Mostyn

All of these offices have their pension arrangements set by legislation. The pension position of both the Lord Chief Justice and a High Court judge will depend on the date when they were appointed to the judiciary. Appointees prior to 31 March 1995 can reach maximum benefits after 15 years, while appointees on or after 31 March 1995 must serve for 20 years to reach maximum benefits.

The Cabinet Secretary, as a member of the Principal Civil Service Pension Scheme, would be eligible for maximum benefits after 40 years service.

The Prime Minister and Speaker of the House of Commons both receive a full pension on leaving office as set out by statute.

The Chancellor of the Exchequer is eligible to join the Parliamentary Contributory Pension Fund. Maximum benefits can be achieved after between 26.7 and 33.3 years, depending on date of joining the scheme and the contribution option chosen.

Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

Which individuals whose pensions are paid from public funds become entitled to their maximum pension entitlement as soon as they are appointed.[HL1602]

Lord Williams of Mostyn

The Prime Minister, the Lord Chancellor and the Speaker of the House of Commons as set down by statute.

Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

For how long Lord Chancellors have been entitled to their full pension as soon as they are appointed. [HL 1603]

Lord Williams of Mostyn

Since 1832.

Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

Why the Lord Chancellor is entitled to a full pension as soon as he is appointed, in contrast to the Lord Chief Justice and the Cabinet Secretary, to whose salaries his salary is linked. [HL1605]

Lord Williams of Mostyn

The pensions associated with the different offices are determined variously. Lord Chancellors have to retire from legal practice in order to take up office and do so on the contractual and statutory basis set out below. By convention they may not, on ceasing to be Lord Chancellor, resume legal practice regardless of how long they may have occupied the office and the pension therefore compensates for loss of future livelihood.

The Lord Chancellor's salary is linked to the salary of the Lord Chief Justice and not the Cabinet Secretary under Section 3 (1) of the Ministerial and other Pensions and Salaries Act 1991, as amended by Article 4 of the Ministerial and other Salaries Order 1996. Provision for the Lord Chancellor's pension and lump sum is made in the Lord Chancellor's Pension Act 1832, the Parliamentary and Other Pensions Act 1972, as amended by the Ministerial and other Pensions and Salaries Act 1991 and the Judicial Pensions Act 1981. The SSRB has been asked to look at the remuneration of the office of Lord Chancellor.

The Lord Chief Justice receives a pension under the terms of either the Judicial Pensions Act 1981 or the Judicial Pensions and Retirement Act 1993, depending on the date of appointment to the judiciary.

The Cabinet Secretary, as a serving civil servant, is eligible for membership of the Principal Civil Service Pension Scheme, the rules of which are made under the provisions of the Superannuation Act 1972.

Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

Further to the Written Answer by the Lord Privy Seal on 28 January 2003 ( WA 12), whether they will update the Answer on the basis of the Lord Chancellor receiving a salary of either (a) £184,096 or (b) £202,736. [HL1606]

Lord Williams of Mostyn

The Lord Chancellor's pension entitlement is met out of the Consolidated Fund and is not provided for via a pension fund. The notional cost of securing a pension on the open market would, all else being equal, increase in proportion to the level of pension to be secured. Therefore, the notional fund of £2 million quoted previously (WA 142), and by reference to a salary of £180,045, would increase to approximately (a) £2.05 million when based on a salary of £184,096 and (b) £2.25 million when based on a salary of £202,736. The SSRB has been asked to review the remuneration of the office of Lord Chancellor.