Parliamentary Contributory Pension Fund

Lord Campbell of Pittenweem Excerpts

Monday 17th October 2011 Commons Chamber

[Sir Menzies Campbell (North East Fife) (LD)]

Let me make it clear that I support the motion and the thinking that lies behind it, but what will be the role of the trustees between now and 2015, and what will it be after 2015? Will they have any fiduciary responsibility for the new scheme, or will their responsibility be limited to the current scheme?

[Sir George Young]

The trustees will continue to administer the scheme. The chairman of the trustees might want to catch your eye, Mr Speaker. Under our changes, the rules that govern the scheme will no longer be made by the Government or the House; they will be made independently by IPSA. After the process of transfer on 1 April next year, the scheme will continue to be administered by the trustees until such time as IPSA makes any change. If it wants to make changes, it must consult the trustees. The motion indicates that the first change should be an increase in the contribution rate. It then suggests that, along with other public sector schemes, a new scheme, perhaps moving from final salary, should be introduced by 2015, but the scheme will continue to be administered by the trustees, and I pay tribute to the work they do.