MPs should lose their gold plated defined benefit (DB) pensions and see them replaced by a career average set up, the Independent Parliamentary Standards Committee (IPSC) has recommended.
In a consultation issued today, the committee, which was advised by Hymans Robertson, set out its principles for reform of the MPs' scheme.
It said the new scheme must balance costs and risks between members and taxpayers.
It added the scheme should provide MPs with an "appropriate" pension in retirement based on their service as an MP, and should not be expected to make up any shortfall in provision from their time outside their career as an MP.
IPSA said the scheme should be more equitable between MPs of different ages, backgrounds and incomes than the present scheme, and not require amendment within the next 25 years. Any reforms should protect accrued rights, the committee said.
The committee's document outlined models for CARE, defined benefit and cash balance schemes, but asked specifically if a CARE scheme should be implemented, and pointed out that a move to a CARE scheme would save £2m per year.
The consultation also asked how MPs' contribution levels should be set, pointing out that MPs contribute, on average, more to the costs of their scheme compared to other public servants, but less than members of a private sector DB scheme.
The consultation runs until 7 December.
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