Parliamentary and other Pensions Act 1987

2 (1) In section 211(2) of the Income and Corporation Taxes Act 1970 (exemption from income tax of Parliamentary pension funds), for paragraph (b) there shall be substituted the following paragraph—

“(b) the Parliamentary Contributory Pension Fund;”.

(2) Subsection (1) of section 229 of the said Act of 1970 (annuity premiums of Ministers and other officers) shall have effect with the following amendments, that is to say—

(a) in paragraph (b), for the words “elects not to be a participant under section 2 of the Parliamentary and other Pensions Act 1972” there shall be substituted the words “is not a participant in relation to that office in arrangements contained in the Parliamentary pension scheme but is a participant in relation to his membership of the House of Commons in any such arrangements”; and

(b) for the words from “(in accordance with any” to “that resolution)” there shall be substituted the words “and the salary which (in accordance with any such resolution as is mentioned in subsection (1B)(a) below)”;

(c) for the words from “In this subsection” onwards there shall be substituted the following subsections—

“(1A) In this section—

• “Member’s pensionable salary” means a Member’s ordinary salary under any resolution of the House of Commons which, being framed otherwise than as an expression of opinion, is for the time being in force relating to the remuneration of Members or, if the resolution provides for a Member’s ordinary salary thereunder to be treated for pension purposes as being at a higher rate, a notional yearly salary at that higher rate;

• “qualifying office” means an office mentioned in paragraph (b), (c) or (d) of subsection (2) of section 2 of the Parliamentary and other Pensions Act 1987;

• “the Parliamentary pension scheme” has the same meaning as in that Act;

and, without prejudice to the power conferred by virtue of paragraph 13 of Schedule 1 to that Act, regulations under section 2 of that Act may make provision specifying the circumstances in which a person is to be regarded for the purposes of this section as being or not being a participant in relation to his Membership of the House of Commons, or in relation to any office, in arrangements contained in the Parliamentary pension scheme.

(1B) In subsection (1A) above “a Member’s ordinary salary”, in relation to any resolution of the House of Commons, means—

(a) if the resolution provides for salary to be paid to Members at different rates according to whether or not they are holders of particular offices, or are in receipt of salaries or pensions as the holders or former holders of particular offices, a Member’s yearly salary at the higher or highest rate; and

(b) in any other case, a Member’s yearly salary at the rate specified in or determined under the resolution.”