The Parliamentary Pensions (Amendment) Regulations 2002

Explanatory Note

(This note is not part of the Regulations)

1.  These Regulations make various amendments to the Parliamentary Pension Scheme.

2.  Regulations 2 and 3 increase the accrual rate from fiftieths to fortieths and the contribution rate from 6 per cent to 9 per cent of salary. The changes have effect from 15th July 2002, but Members and office holders in service on 15th July 2002 have an option to backdate their increased contributions and accrual rate to 5th July 2001. Members and office holders are also given the option to continue to contribute at the rate of 6 per cent and to accrue their pension in fiftieths.

3.  Regulation 4 amends regulation F8 in the Principal Regulations to provide an exception to the abatement requirements in respect of pension. Former Members of the House of Commons who become paid office holders in the House of Lords will not have their pension abated. However abatement will still be applicable to any part of the pension earned as a paid office holder in the House of Commons.

4.  Regulation 5 amends regulation H1 in the Principal Regulations to provide that service in the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly counts towards the qualifying period for an early retirement pension, except where the service is concurrent with membership of the House of Commons.

5.  Regulation 6 amends regulation K3 and Schedule 5 in the Principal Regulations so that, in the case of members dying on or after 1st April 2001,all dependant children will receive equal treatment in respect of benefits.

6.  Regulation 7 amends regulation L1 in the Principal Regulations to increase the lump sum death in service payment from three times annual basic salary to four times annual basic salary.

7.  Section 2(4) of the Parliamentary and other Pensions Act 1987 confers express power to make regulations retrospective in effect. Regulations 4 to 7 take effect from 1st April 2001.