Parliamentary Contributory Pension Fund

Julian Brazier Excerpts

Monday 17th October 2011 Commons Chamber

[Sir George Young]

The contributions for those subscribing at one fortieth are indeed higher than those for many elsewhere in the public sector, but so are the benefits. The Exchequer contribution, at some 28%, is also substantially higher than for other public sector schemes. One needs to consider it in the round when one comes to a judgment about the appropriate treatment of the scheme.

Today’s motion supports the approach to public service pension reform set out in the final report of the independent public service pensions commission.

[Mr Julian Brazier (Canterbury) (Con)]

Some of us strongly support the principle behind my right hon. Friend’s motion, but our dilemma is that once again IPSA is acting as administrator and as the body that sets the rates—an arrangement that one does not often find anywhere else. If the committee chaired by my hon. Friend the Member for Windsor (Adam Afriyie) finds that there should be some division between the administration of our pay, pensions, allowances and so on and the setting of their rates, will my right hon. Friend reassure us that the motion, if passed, will not be the final word on the matter?

[Sir George Young]

The administration will be performed by the trustees; there is no change in that. The contribution rates and ultimately the shape of the scheme will be determined by IPSA, which will set the rules. The trustees will continue to administer the scheme, with some slight change in their membership to reflect IPSA’s new involvement.