MPs could lose £15,000 a year from their generous pension plans under reforms unveiled by a government review board yesterday.

Retirement packages may be altered to mirror the current pension amount that workers in the private sector receive.

The Senior Salaries Review Board said that the taxpayer contribution to MP pensions should be reduced to 10.5 per cent of their total salaries – half of the current figure. If plans are put into effect an MP elected this year would see their annual pension drop from £37,240 to £22,579.

A senior government source said: “This is about trying to drag MPs back into the real world and getting them more in line with what happens in the private sector. MPs’ pensions have been seen as the most generous around and this will be a significant part of the debate”

An MP who has served 20 years on the job receives a £65,000 salary under current legislation and half of that figure forms their annual pension income.

Matthew Elliott, of the TaxPayers’ Alliance, said: “With the public finances in such a mess, these final-salary schemes are no longer sustainable, and are all but extinct in the private sector”.

The review board said that pension figures will be calculated using the average amount of the income received by an MP over the course of their employment rather than using their final salary sum.

It also concluded that the pension age should go up from 65 to 68.

Mr Elliot said: “Taxpayers deserve to see politicians show some humility with their pay and pensions”.

2 Responses to “Lavish MP pensions may be halved under government plans revealed last night”

  1. John Landstrom says:

    What is the latest on the review on MP’s pension contribution by the taxpayer?. Are they public sector workers? I have just heard MP Boles arguing that the taxpayer pays 14% towards teachers pensions,and saying that isn’t fiar. Unless thing have changed we the taxpayers are paying 21% towards MP’s pensions.I keep hearing the Government using the word “fair” So lets see it being fair across the board starting with MP’s! I would love to have a pension of over £22,000,wouldn’t you?

  2. Ju Bradders says:

    It is only fair that MP’s get the same pension as the workers they are represent. It is totally outrageous that they have their pockets lined at the workers expense. Most of them are wealthy beyond belief and could well live without any pension from the state. Perhaps this is the answer…. if you have wealth you do not have a pension from the state. How much money can one spend in retirement anyway. It really does seem to me the more money one accumulates the greedier one becomes.
    I would not need a pension of £22,000 in old age, I am not wealthy but I am able to live frugally and understand only too well, money does not make you happy, health is far more important, unfortunately I am not so sure the NHS is going to be there for me.
    Yet I have worked in the NHS as a nurse all my life. I will not get a good pension, I was a single parent after my ex committed adultery. I am one of those women who took time out to care for my children, affected my pension adversely but it was worth it. My children are well balanced and that has benefited society. I am now forced to work in a stressful environment until I am 65 years but I am not sure that will be so good for my patients who are dependent on the decisions I make. Note police can still retire early as can teachers and firemen. What makes this fair, yet my work is strenuous, mentally and physically.
    I would very much like all MP’s to come and work on a busy surgical ward…… just for a week at the age of 60 years and see how they cope with the pressure.

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