MPs could lose gold-plated pension pots

MEMBERS of Parliament could lose their gold-plated pensions under proposals to be considered as part of a review of their salary and benefits.

The Independent Parliamentary Standards Authority (IPSA) yesterday launched its consultation on the future of MPs’ pay, which includes questions on parliament’s final salary pension scheme.

Others proposals include linking MPs’ salaries to a multiple of average earnings and reducing the amount paid to representatives who have secondary sources of income.

MPs currently take home £65,738 a year, which has been frozen until March 2013.

However IPSA said that any move to introduce regional variations to MPs’ pay – in line with other public sector workers – was inappropriate.

IPSA was founded in the aftermath of the 2009 expenses scandal and neither MPs nor the government can block its decisions.

“MPs’ self regulation of their financial affairs is over. For the first time an independent body – IPSA – will decide, but not before we ask the public what they think,” said Sir Ian Kennedy, IPSA chairman. “In the past this issue has been ducked, dodged or fudged to meet the political whim of the moment. Clearly that is not right. IPSA’s approach is different.”

As part of the consultation polling firm ComRes discovered that “most people do not understand what MPs do, which fosters animosity and scepticism”.