The Parliamentary Pensions (Amendment) (No 2) Regulations 2009

Contributions by participating Members

3.  For paragraphs (3) to (3E) of regulation D1(1) of the Principal Regulations substitute—

“(3) For the purposes of paragraph (1) the appropriate percentage—

(a) in relation to a payment of salary made in respect of a period beginning on or after 1st April 1992 and ending before 5th July 2001, is 6 per cent; or

(b) in relation to a period beginning on or after 5th July 2001 and ending before 1st April 2004—

(i) in respect of all or any part of such period as a Category 1 contributor is 9 per cent; or

(ii) in respect of all or any part of such period as a Category 2 contributor is 6 per cent; or

(c) in relation to a period beginning on or after 1st April 2004 and ending before 1st April 2008—

(i) in respect of all or an part of such period as a Category 1 contributor is 10 per cent; or

(ii) in respect of all or any part of such period as a Category 2 contributor is 6 per cent; or

(d) in relation to a period beginning on or after 1st April 2008 and ending before 1st April 2009—

(i) in respect of all or any part of such period as a Category 1 contributor is 10 per cent;

(ii) in respect of all or any part of such period as a Category 2 contributor is 6 per cent; or

(iii) in respect of all or any part of such period as a Category 3 contributor is 5.5 per cent; or

(e) in relation to a period beginning on or after 1st April 2009—

(i) in respect of all or any part of such period as a Category 1 contributor is 11.9 per cent;

(ii) in respect of all or any part of such period as a Category 2 contributor is 7.9 per cent; or

(iii) in respect of all or any part of such period as a Category 3 contributor is 5.9 per cent.

(3A) A participating Member who is a Member of the House of Commons on or after 1st January 2010 may exercise the option to select a membership category—

(a) in the case of a participating Member who is a Member of the House of Commons on 1st January 2010, by giving a qualifying notice to the Trustees no later than 1st April 2010; or

(b) in the case of a participating Member who is not a Member of that House on 1st January 2010, but who becomes a Member after 1st January 2010, by giving a qualifying notice to the Trustees not more than three months after the date of the General Election or by-election at which the Member is elected or re-elected to membership of the House of Commons.

(3B) In this regulation a qualifying notice is a notice in a form acceptable to the Trustees which—

(a) is in writing;

(b) is signed by the Member to whom it relates (“M”), at a time when M is a participating Member;

(c) specifies whether M wishes to contribute to the Fund as a Category 1, Category 2 or Category 3 contributor; and

(d) if M is a Member of the House of Commons on 1st January 2010, specifies whether M wishes to contribute to the Fund in the membership category selected in sub-paragraph (c) with effect on and from—

(i) the later of 1st April 2008 or the date of M’s election or re-election to the House of Commons; or

(ii) 1st April 2009.

(3C) Where a Member (“M”) exercises the option in paragraph (3A)(a), the effective date of the option is the date specified in M’s qualifying notice in accordance with paragraph (3B)(d).

(3D) Where a Member (“M”) exercises the option in paragraph (3A)(b), the effective date of the option is the date on which M is elected or re-elected to the House of Commons.

(3E) Where a Member (“M”) does not exercise the option in paragraph (3A)—

(a) if M is a Member of the House of Commons on 1st April 2008 and was a Category 1 contributor immediately before that date, M continues as a Category 1 contributor on and after that date;

(b) if M is a Member of the House of Commons on 1st April 2008 and was a Category 2 contributor immediately before that date, M continues as a Category 2 contributor on and after that date;

(c) if M becomes a Member of the House of Commons on or after 1st April 2008 and before 1st January 2010 and does not opt, before 1st January 2010, to contribute to the Fund at a reduced rate, M is a Category 1 contributor on and from the date when M becomes a Member of the House of Commons;

(d) if M becomes a Member of the House of Commons on or after 1st April 2008 and before 1st January 2010 and opts, before 1st January 2010, to contribute to the Fund at a reduced rate, M is a Category 2 contributor on and from the date when M becomes a Member of the House of Commons; and

(e) if M becomes a Member of the House of Commons on or after 1st January 2010, M is a Category 1 contributor on and from the date when M becomes a Member of the House of Commons.

(3F) Paragraph (3G) applies if, as a result of a Member (“M”) exercising the option in paragraph (3A), the contributions deducted from M’s salary on and after the effective date of the option exceed the sums required to be deducted in respect of M under paragraph (1) on and after the effective date of the option.

(3G) If this paragraph applies in respect of a Member (“M”), as soon as reasonably practicable after receiving M’s qualifying notice, the Trustees must—

(a) calculate the difference (the “Excess”) between—

(i) the contributions deducted from M’s salary on and after the effective date of the option; and

(ii) the contributions required to be deducted in respect of M under paragraph (1) on and after the effective date of the option; and

(b) cease deducting contributions from M’s salary under paragraph (1).

(3H) Where the Trustees have ceased deducting contributions under paragraph (3G), they must resume deducting contributions when the amount of the contributions not deducted as a result of paragraph (3G) is equal to the amount of the Excess.

(3I) If a Member ceases to be a participating Member before the amounts referred to in paragraph (3H) are equal, the Trustees must repay the difference to the Member.

(3J) If, as a result of a Member (“M”) exercising the option in paragraph (3A), the contributions deducted from M’s salary on and after the effective date of the option are less than the sums required to be deducted in respect of M under paragraph (1) on and after the effective date of the option, M must pay to the Trustees the sum certified by the Trustees as being the additional amount due to make up M’s contributions to the sums required.

(3K) If paragraph (3J) applies, a Member (“M”) must make the payment referred to in that paragraph within twenty-eight days of the end of any period during which M may exercise the option in paragraph (3A), or within such longer period as the Trustees may in their discretion determine.”.

(1)

Regulation D1 was amended by S.I. 2002/1807 and S.I. 2005/887.