Citation and commencement

1. These Regulations may be cited as the Parliamentary Pensions(Amendment) Regulations 1991 and shall come into force on 2nd April1991.

Interpretation

2. In these Regulations, unless the context otherwise requires:

(1) "the 1972 Act" means the Parliamentary and other Pensions Act 1972(2) as amended by the Parliamentary and other Pensions andSalaries Act 1976(3), the Parliamentary Pensions Act 1978(4) and the Parliamentary Pensions Etc. Act 1984(5).

(2) Expressions used in these Regulations have the meaning which theybear in the existing enactments as defined in paragraph 5 of Schedule 2to the Parliamentary and other Pensions Act 1987.

Maximum pension

3. In section 3 of the 1972 Act (contributions from Parliamentaryremuneration) after subsection (7) there shall be inserted:

"(8) Where on or after 2nd April 1991 a person's aggregate period ofreckonable service as a Member (increased where appropriate by theaddition of any period under section 22(3) of this Act or by thepurchase of added years by virtue of section 11 of the Act of 1978)exceeds that which would give rise to the maximum pension allowed inrespect of that person under section 7(3A) of this Act, and that Memberhas not attained the age of 65, no deduction shall be made from hissalary under this section."

Early retirement

4. In section 7 of the 1972 Act after subsection (4A) there shall beinserted:

"(4B) Where on or after 2nd April 1991 a person who

(a)is a Member of the House of Commons and ceases to be a Member ofthat House;

(b)has attained the age of fifty years; and

(c)has been a Member of that House for a period of not less thanfifteen years, or for two or more periods amounting in the aggregate tonot less than fifteen years (hereinafter referred to in respect of aperson as his"qualifying period"), applies in writing to the trustees for an immediate pension underthis section, then, if the trustees are satisfied that he does notintend to stand for re-election to that House, he shall be entitled toreceive a pension under this section as if he had attained the age of 65years on the date of his application or, if later, such other date asmay be there specified; but the annual amount of the pension to which heis so entitled, both before and after he attains the age of 65 years,shall (subject to sections 11 and 31 of this Act) be an amountcalculated in accordance with Schedule 5 to this Act.

(4C) For the purposes of subsection (4B)(c) of this section service of aperson as a Member of the Parliament of the European Communities,whether rendered before or after 2nd April 1991, may count towards hisqualifying period to the extent that it is not concurrent with serviceas a Member of the House of Commons."

5. After Schedule 4 to the 1972 Act there shall be inserted:

Section 7(4B)

"SCHEDULE 5

Early retirement for certain Members after 2nd April 1991

1. The pension to which a person is entitled by virtue of section 7(4B)shall be abated, having regard to the person's age and the length of hisqualifying period at the date of his application or, if later, suchother date as may be there specified, from the date from which thatpension is payable by the percentage specified in the table below.

2. The pension to which a person is entitled by virtue of section 7(4B)shall not be reduced below the rate of the guaranteed minimum pension,as provided for by Article 3 of the Parliamentary and other Pensions(Contracted-Out Provisions) Order 1978(6).

Abatement by Single Percentage from Date Pension Payable

Where the age or the qualifying period is not an exact number ofyears the percentage abatement shall be obtained by interpolating firstfor the required age and secondly for the required qualifying period."

6. In section 7(6) of the 1972 Act for the words"subsections (4) and (4A)" there shall be substituted the words"subsections (4), (4A) and (4B)."

7. In section 9(1) of the 1972 Act (pensions for office-holders) afterthe words"section 7(4A)" there shall be inserted in both places where they occur the words"or (4B)."

8. In section 10 of the 1972 Act (amount of pension for office-holders)after subsection (3C) there shall be inserted-

"(3D) If a person becomes entitled to a pension under section 9 of the1972 Act by virtue of his entitlement to a pension under section 7(4B)of that Act, his pension under section 9 shall be abated by the samepercentage and from the same date as the pension paid by virtue ofsection 7(4B)."

9. In section 25(2A) of the 1972 Act (interpretation) there shall besubstituted forthe words"under section 7(4), 10(4) or" the words"under section 7(4), 7(4B), 10(3D),10(4) or"

Changes to widows', widowers' and children's pensions

10.-(1) In section 13(2) of the 1972 Act (amount of widows' pensions) thereshall be substituted for the words"one-half" the words"five-eighths".

(2) Paragraph (1) above shall have effect in relation to a widow whosehusband dies on or after 6 April 1988, provided that the widow's pensionis not payable at the increased rate until the date these regulationscome into force, but shall not have effect in relation to any pensionwhich first became payable under the 1972 Act before 6 April 1988.

11.-(1) In section 15(2) of the 1972 Act (amount of childrens' pensions)there shall be substituted for the words from"a sum equal to one-quarter" to the end of the sentence the words

"(a) a sum equal to one-quarter of the basic or prospective pension orpensions of the deceased if there is one child or, if there is more thanone, a sum equal to three-sixteenths of the basic or prospective pensionor pensions of the deceased for each relevant child not exceeding two;or

(b) if the widow or widower is dead and subject to sub-section (4)below, a sum equal to five sixteenths of the basic or prospectivepension or pensions of the deceased for each relevant child notexceeding two."

(2) Paragraph (1) above shall have effect in relation to a child'spension where the person from whom the pension derives dies on or after6 April 1988, provided that the child's pension is not payable at theincreased rate until the date these regulations come into force, butshall not have effect in relation to any pension which first becamepayable under the 1972 Act before 6 April 1988.

Increase in death gratuity

12.-(1) In section 16(3)(a) of the 1972 Act (amount of gratuity on death ofMember or officeholder) there shall be substituted for the words"the amount of a Member's pensionable salary" the words"the amount equal to twice the Member's pensionable salary."

(2) Paragraph (1) above shall be deemed to have come into force on 6April 1988 but shall not have effect in relation to any gratuity whichfirst become payable under the 1972 Act before that date.

Protection against adverse alterations

13. Where a person has ceased to be a Member of the House of Commons orto hold a qualifying office before these Regulations come into force andthese Regulations put him in a worse position in relation to an accruedright than he would have been in apart from the Regulations, he or(where he has died) persons who are or may become entitled by virtue ofthat right to or to the benefit of any pension, or a person acting onbehalf of that person or those persons, may opt for the accrued rightsto remain unaffected by these Regulations.

Appointment of agents

14. The trustees of the Fund may appoint such person as they think fitto acquire assets for and dispose of assets of the Fund on their behalfand in accordance only with such instructions as to investment policy,as the trustees shall from time to time determine and lay down.

15. The trustees of the Fund shall review any acquisition or disposal ofthe assets of the Fund by such person as may be appointed underregulation 14 and shall do so within six months of the date of any suchacquisition or disposal.

16. Upon a review pursuant to regulation 15, the trustees may ratify theacquisition or disposal, or may take such other action in respect of itas they think fit."

Explanatory Note

(This note is not part of the Regulations)

1. These Regulations amend the Parliamentary and other Pensions Act1972 (as amended), which by virtue of the Parliamentary and otherPensions Act 1987 (the 1987 Act), section 2 and Schedule 2, has effectas if contained in regulations made under section 2 of the 1987 Act andcan be modified accordingly. The Regulations make a number of changes tothe provision of pensions for Members of Parliament and the holders ofMinisterial and other offices and provide for the trustees of theParliamentary Contributory Pension Fund to appoint an agent to deal withassets of the Fund on their behalf.

2. Regulation 3 provides that no deductions will be made from thesalary of an MP below the age of 65 if he has sufficient reckonableservice to earn a maximum pension.

3. Regulations 4 to 6 introduce new early retirement provision forMPs, under which a full accrued pension is payable from the age of 60and an abated pension from the age of 50 to an MP who has the requisiteamount of service. Provision is also made for service as a Member of theEuropean Parliament, including service before these Regulations, tocount towards the qualifying period of service. Regulations 7 and 8provide that an officeholder who is entitled to a pension under the newearly retirement arrangements is also entitled to an officeholder'spension, similarly abated. Regulation 9 ensures that where a personreceives an abated pension under the new early retirement arrangements,the widows', widowers' and children's pensions will be calculated on theunabated pension.

4. Regulations 10, 11 and 12 alter respectively the amount ofwidows' and widowers' benefits, childrens' benefits and death gratuityand regulation 13 provides the protection for former MPs required by the1987 Act against any adverse alteration of accrued rights.

5. Regulations 14 to 16 empower the trustees of the Fund to appointan agent to acquire and dispose of assets of the Fund on their behalf.Regulation 14 provides that the person appointed shall act in accordancewith the investment policy of the trustees. Regulations 15 and 16require the trustees to review any acquisitions and disposals of assetswithin a period of six months and to ratify or take any otherappropriate action in respect of them.