Parliamentary Contributory Pension Fund

John Bercow Excerpts

Monday 17th October 2011 Commons Chamber

[The Leader of the House of Commons (Sir George Young)]

I beg to move,

That this House reasserts its view that the salaries, pensions and expenses scheme for hon. Members ought to be determined independently of this House; accordingly invites the Leader of the House to make an order commencing those provisions of the Constitutional Reform and Governance Act 2010 which transfer responsibility for the pensions of hon. Members to the Independent Parliamentary Standards Authority (IPSA); supports the approach to public service pension reform set out in the Final Report of the Independent Public Service Pensions Commission chaired by Lord Hutton of Furness; believes that IPSA should introduce, by 2015, a new pension scheme for hon. Members which is informed by the Commission’s findings and their subsequent application to other public service pension schemes; recognises the case for an increase in pension contributions made in Lord Hutton’s interim report; and accordingly invites IPSA to increase contribution rates for hon. Members from 1 April 2012 in line with changes in pension contribution rates for other public service schemes.

[Mr Speaker]

I should inform the House that I have selected the amendment in the name of the hon. Member for Christchurch (Mr Chope).

[Sir George Young]

Should the House agree to this motion, we will have completed the transition to a wholly independent system for setting and administering MPs’ remuneration. The first and most pressing task was to establish a transparent new expenses scheme in time for the beginning of this Parliament. That was achieved, albeit not without some issues about the operation of the scheme, which have been aired on other occasions. Since May this year, responsibility for setting MPs’ pay has also rested with the Independent Parliamentary Standards Authority; under the relevant legislation, MPs will not vote on their own pay again. Today’s debate on MPs’ pensions represents the final piece of the jigsaw. Once the powers in relation to pensions have been transferred to IPSA, it will have responsibility for looking in the round at the whole remuneration package for Members of Parliament.

The motion before us should not come as a surprise to the House.

--- Later in debate ---

[Bob Russell]

On a point of order, Mr Speaker. If those on the two Front Benches cannot agree on a matter of such fundamental importance as this, how on earth can we proceed?

[Mr Speaker]

That is definitively not a point of order. It is a point of obvious and intense frustration.

[Ms Eagle]

I do not want to use the word “frustrated” in the Chamber because it is rather a difficult one to use. I did not think we were disagreeing. I thought I was answering slightly more accurately the point that the right hon. Member for Wokingham had made about trustees’ duties in law. The Leader of the House was answering a slightly different question about the fact that IPSA would be in charge of the scheme. Again, that does not undermine our existing understanding of trustee law and the fiduciary duties of pension trustees.

--- Later in debate ---

[Margot James (Stourbridge) (Con)]

I see no discrepancy in the Government seeking to apply the principles of public sector reform to the decisions that IPSA will ultimately take, as is stated in the motion. That does not preclude IPSA from consulting on the finer details, as my hon. Friend said. It is important that it is explicit in the motion that the principles of the wider public sector reforms should be applicable to MPs’ pensions. It is imperative that the message goes out that that is what we are voting for.

[Mr Speaker]

Order. I am extremely grateful to the hon. Lady. That may well be imperative, but it is also imperative that interventions from now on are brief, because a number of people wish to speak. I remind the House that a debate of exceptional importance is to take place under the auspices of the Backbench Business Committee. I do not think that I am alone in hoping that that debate will not be delayed unduly.

[Mr Chope]

I will make a brief response to my hon. Friend the Member for Stourbridge (Margot James), Mr Speaker. What she says about perceptions is important. That is why it is essential that the Government do not bring forward motions that seem to be designed to appeal to an outside audience, while at the same time leaving things rather vague and open to the accusation that they are trying to tie the hands of the Independent Parliamentary Standards Authority.