The Parliamentary Pensions (Amendment) Regulations 1991

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.