MPs lose right to vote for own pension rises

MPs have passed a motion transferring the responsibility for setting their pension payments to the Independent Parliamentary Standards Authority (IPSA).

The motion, presented by leader of the House Sir George Young, adds pension responsibilities to the pay-setting duties IPSA already has.

MPs will no longer vote through their own pension increases or decreases. The motion also means MPs will face the same increases to contributions as all other public sector employees.

Other public sector workers face increases to their contributions, a shift from final salary to career average arrangements, and later retirement dates than previously agreed.

The motion does not change the legal duty of the trustees of the scheme, who will still administer it, and has no impact on accrued benefits.

Some MPs fought the link to other public sector pension reform. Christopher Chope, MP for Christchurch, proposed an amendment to remove the clause making MPs subject to the same reforms as other public sector workers.

Chope argued making MPs' pensions subject to the same contribution increases as other public servants would "tie the hands" of IPSA when it launches a public consultation on reforming MPs' pensions.

He also said there is no formula for working out the increases that should be made to public sector schemes, as they are all different.

Mark Field, conservative MP for Cities of London and Westminster, said the link is unfair because MPs pay more into their pensions than other public servants, and argued the MPs' scheme is fully funded.

However, Young said MPs receive greater pension benefits at a greater proportional cost to the Exchequer than other public sector schemes.

David Winnick, Labour MP for Walsall North, said support for the motion implied support for the government's public sector spending cuts, but shadow speaker of the House Angela Eagle said Labour opposes the austerity drive whilst supporting the motion.

The amendment was withdrawn and the original motion passed.