Parliament has put an end to the situation whereby MPs decide their own pay and pension arrangements, instead giving the Independent Parliamentary Standards Authority (IPSA) the powers to decide this.

In a report entitled Reviewing MPs Pay & Pensions, which analysed responses to a previous consultation running from 15 October to 7 December 2012, IPSA found that most respondents were in favour of the MPs’ Pension Scheme being reformed using a Career Average Revalued Earnings (CARE) scheme. The report stated that the MPs’ Pension Scheme should be reformed to be more in line with public service schemes which was a point stated by the Senior Salaries Review Body (SSRB).

MP John Baron added to the consultation by stating that MPs pensions “should perhaps reflect a civil servant’s on similar pay”.

In its latest report IPSA also published responses to whether MPs should be offered flexibility in their pension provision, such as reduced contributions in return for reduced benefits.

Of 100 respondents, two thirds agreed with offering MPs flexibility in their pension provision. MP Sir Nick Harvey said there is a “strong case to be made for flexibility over contribution and accrual rates given MPs’ vastly differing ages, length of service, career histories and other financial and personal circumstances”.

IPSA will continue its analysis of MPs’ remuneration over the coming months and will publish proposals in spring. It plans to publish details of the new remuneration package in autumn, to take effect after the next general election.

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