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(1)For subsections (3) and (4) of section 26 of the M1Parliamentary and other Pensions Act 1972 (pensions of Prime Minister and Speaker) there shall be substituted—
“(3)Subject to section 31 of this Act, the annual amount of a pension payable to a person under this section in respect of the office of Prime Minister and First Lord of the Treasury shall be equal to one-half of the annual amount of the salary payable in respect of that office at the time when that person ceases to hold it.
(4)Subject to section 31 of this Act, the annual amount of a pension payable to a person under this section in respect of the office of Speaker of the House of Commons shall be equal to one-half of the annual amount of the salary payable in respect of that office at the time when that person ceases to hold it.”
(2)For section 28(1) of that Act (pension of Lord Chancellor) there shall be substituted—
“(1)Subject to section 31 of this Act, the annual amount of any pension granted under section 3 of the Lord Chancellor’s Pension Act 1832 shall, in the case of a person resigning the office of Lord Chancellor, be equal to the aggregate of one-half of the annual amount of the salary payable in respect of his tenure of that office and one-half of the annual amount of the salary payable to him as Speaker of the House of Lords at the time when he ceases to hold those offices.”
(3)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)The foregoing provisions of this section apply to persons ceasing to hold the office of Prime Minister and First Lord of the Treasury, Speaker of the House of Commons or Lord Chancellor after the passing of this Act.
(5)The annual amount of the pension which at the passing of this Act is payable under—
(a)section 26(3) of the said Act of 1972; or
(b)section 3 of the M2Ministerial Salaries Consolidation Act 1965,
to a person who has ceased to be Prime Minister and First Lord of the Treasury before that time shall be increased by the sum required to bring that amount up to what it would be by virtue of the foregoing provisions of this section if he had ceased to hold those offices immediately after the passing of this Act.
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