You just cant beat a quiet night in!

http://bighollywood.breitbart.com/ggraham/2009/03…

Just one day after the furore over MPs' expenses, Commons Leader Harriet Harman unveiled changes to the funding of the pension scheme.

The recession-hit taxpayer currently pays 26.8 per cent of a parliamentarian's pensionable salary into their pension. This will rise by 1.9 per cent to 28.7 per cent from tomorrow.

The plans were revealed after financial experts warned that the final salary fund deficit had grown from £49.5million in 2005 to £50.9million last year, largely because MPs were living longer.

The Government Actuary said the Treasury would have to up its payments by 4.8 per cent – or £2.1million a year – to cover the gap.

However, Ms Harman said in a statement that she was consulting with the fund trustees and MPs on how to limit the taxpayer contribution.

The Government's 'preferred option' was for members to hand over an extra 1.9 per cent of their salary – equivalent to around £60 a month. The change would be backdated to take effect tomorrow.

That would mean the Exchequer having to increase its contribution from £12.4million to £13.2million, rather than to nearly £14.6million.

Liberal Democrat pensions spokesman Steve Webb insisted that upping the burden on the public purse would be a 'spectacular own goal for MPs'.

'The pensions of MPs and other well-paid public sector workers have to be brought in line with reality,' he said.

'With members of the public losing their jobs and seeing their pensions plummet, MPs cannot insulate themselves from the harsh realities of the recession.'

Gordon Brown appeared to bow to public anger over MPs' final salary pensions today by announcing a review which could see them replaced by a less generous scheme.

Ms Harman said the Prime Minister had asked the Senior Salaries Review Body to conduct a 'fundamental review' of pension provision for MPs as the Treasury's contribution was likely to rise above the 20 per cent cap in the future.

She added: 'The Prime Minister has asked the SSRB to consider the full range of options for reducing the Exchequer contribution and to consider, amongst other things, the merits of defined contribution or money purchase arrangements. We expect the SSRB to report later this year.

'The Government is committed to providing public service pension schemes that are affordable and sustainable in the longterm, consistent with the principle of fairness for all taxpayers and between generations'

She also announced that ministers would consult MPs and the Trustees of the Parliamentary Contributory Pension Fund on any proposed changes to be brought in next month.

She added that the Government's 'preferred option' included an increase in member contribution of between six per cent and 11.9 per cent.

This would mean that an MP on a 1/40th accrual rate would pay a net increase of about £60 per month on top of the current contribution of £316 per month, she said.

The total annual contribution based on 2009/10 salary would be around £4,625, she added.

Other restrictions, to maintain the 20 per cent cap, would be imposed on MPs to keep down the bill.

MPs risked public outrage today by asking taxpayers to provide an extra £800,000 a year to bail out their gold-plated pensions.

Just one day after the furore over MPs' expenses, Commons Leader Harriet Harman unveiled changes to the funding of the pension scheme.

The recession-hit taxpayer currently pays 26.8 per cent of a parliamentarian's pensionable salary into their pension. This will rise by 1.9 per cent to 28.7 per cent from tomorrow.

The plans were revealed after financial experts warned that the final salary fund deficit had grown from £49.5million in 2005 to £50.9million last year, largely because MPs were living longer.

The Government Actuary said the Treasury would have to up its payments by 4.8 per cent – or £2.1million a year – to cover the gap.

However, Ms Harman said in a statement that she was consulting with the fund trustees and MPs on how to limit the taxpayer contribution.

The Government's 'preferred option' was for members to hand over an extra 1.9 per cent of their salary – equivalent to around £60 a month. The change would be backdated to take effect tomorrow.

That would mean the Exchequer having to increase its contribution from £12.4million to £13.2million, rather than to nearly £14.6million.

Liberal Democrat pensions spokesman Steve Webb insisted that upping the burden on the public purse would be a 'spectacular own goal for MPs'.

'The pensions of MPs and other well-paid public sector workers have to be brought in line with reality,' he said.

'With members of the public losing their jobs and seeing their pensions plummet, MPs cannot insulate themselves from the harsh realities of the recession.'

Gordon Brown appeared to bow to public anger over MPs' final salary pensions today by announcing a review which could see them replaced by a less generous scheme.

Ms Harman said the Prime Minister had asked the Senior Salaries Review Body to conduct a 'fundamental review' of pension provision for MPs as the Treasury's contribution was likely to rise above the 20 per cent cap in the future.

She added: 'The Prime Minister has asked the SSRB to consider the full range of options for reducing the Exchequer contribution and to consider, amongst other things, the merits of defined contribution or money purchase arrangements. We expect the SSRB to report later this year.

'The Government is committed to providing public service pension schemes that are affordable and sustainable in the longterm, consistent with the principle of fairness for all taxpayers and between generations'

She also announced that ministers would consult MPs and the Trustees of the Parliamentary Contributory Pension Fund on any proposed changes to be brought in next month.

She added that the Government's 'preferred option' included an increase in member contribution of between six per cent and 11.9 per cent.

This would mean that an MP on a 1/40th accrual rate would pay a net increase of about £60 per month on top of the current contribution of £316 per month, she said.

The total annual contribution based on 2009/10 salary would be around £4,625, she added.

Other restrictions, to maintain the 20 per cent cap, would be imposed on MPs to keep down the bill.

http://www.richardtimney.com

You have to laugh…