The Parliamentary Pensions (Amendment) Regulations 1996

Explanatory Note

(This is not part of the Regulations)

These Regulations amend the Parliamentary Pensions (Consolidation and Amendment) Regulations 1993 and the Parliamentary Pensions (Amendment) Regulations 1995.

The effect of regulation 4 is that where the amount of a Member’s ordinary salary during any period prior to 1st July 1996 falls to be taken into account in determining relevant terminal salary, whether for a Member of Parliament or an office holder in service on or after 1st July 1996, the annual rate during that period shall be deemed to have been £43,000 per annum.

Regulation 5 improves the accrual rate for service in a Ministerial or other office before 20th July 1983 from sixtieths to fiftieths for participants in the scheme in service on or after 1st July 1996. There is a consequential amendment to the reckonable service of any office holder who has brought a transfer value into the scheme which has been treated as service before 20th July 1983. By virtue of regulation 3 that service is adjusted so that the resulting pension is not affected by the change in the accrual rate.

The Regulations also improve the accrual rate for service as a Member of Parliament before 20th July 1983 from sixtieths to fiftieths for participants who were not in service as Members on 1st April 1995 but who serve as participants on or after that date. The provisions for the consequential amendment of reckonable service set out in the Schedule to the Parliamentary Pensions (Amendment) Regulations 1995 are applied to such participants by virtue of regulation 6.

Regulation 7 changes the provisions relating to gratuities payable in respect of Ministers and other office holders who die in service on or after 1st July 1996. Their gratuity is three times their ministerial salary and, if they are also serving Members of Parliament, it is payable in addition to the gratuity payable in respect of a serving Member.

The effect of regulation 8 is that, notwithstanding regulation 7, there remains unchanged the amount of any gratuity which may be payable to the personal representatives of a former participant who dies after retirement without leaving any dependants entitled to a pension payable from the Fund.

Section 2 of the Parliamentary and other Pensions Act 1987 confers express power to make regulations retrospective in effect. These Regulations have effect from 1st July 1996, save that regulations 3(a), 5(1) and 6 have effect from 1st April 1995.