Overhaul planned for MPs’ pay and pensions

MPs could be subject to performance-related pay and be offered membership to career average pension schemes as part of a complete review of their salaries and pensions being undertaken by the Independent Parliamentary Standards Authority (IPSA).

Reviewing MPs’ pay and pensions: a consultation is the first step in determining a new settlement for MPs’ pay and pensions. It sets out the background of MPs’ pay and pensions, and then discusses changes to the remuneration package, which could be introduced by 2015.

The questions posed in the consultation include:

  • Should there be a differential basis to MPs’ pay?
  • Should MPs be subject to performance-related pay?
  • To what extend should IPSA consider the salary levels of other occupations when determining what MPs should be paid?
  • Should MPs’ pay be linked to a multiple of average earnings?
  • Should MPs’ pension scheme be reformed using a career average revalued earnings (Care) scheme in the same way as other public sector schemes?
  • Should MPs be offered flexibility in their pension provision, such as reduced contributions in return for reduced benefits?

IPSA intends to present the new package of pay and pensions for public consultation in the spring of 2013.