Tim Worstall

MP’s Pensions

Yes, it’s one rule for them and another for us.

MPs are to be protected at taxpayers’ expense from the pensions crisis
that is blighting the retirement of millions of people, the Government
announced yesterday.
…
In a written statement slipped out as MPs left for a two-week Easter
recess, Geoff Hoon, the Leader of the Commons, said the Government
Actuary, who reports on the pension fund every three years, had ruled
that Exchequer contributions to the fund would have to go up from 24
per cent to 26.8 per cent.
…
Mr Blair and Stephen Timms, the pensions minister, insisted that the
taxpayer could not be expected to bail out people whose pension schemes
had collapsed, even though Ann Abraham, the Parliamentary Ombudsman,
said there had been maladministration and there was "real suffering and
distress".

Quite wonderful, don’t you think? To add insult to injury:

A Cabinet Office spokesman said that MPs would not have bigger pensions as a result of the latest move.

Really? They’ll certainly be getting bigger pensions than they would if the fund hadn’t had the extra money put into it now won’t they? That’s, err, the point of putting the extra money in isn’t it?

In

4 responses

  1. Rev. Spooner Avatar
    Rev. Spooner

    Just about the time a few years ago (2002) the issue of pensions shortfalls for the hoi polloi were beginning to gain a high profile in the MSM, Parliament voted an increase in MP’s pension accruals from 1/50th with 6% contribution(already very generous) to 1/40th with a 6% of salary contribution.
    Anybody might have thought they could see what was coming.
    (It was 1/60 accrual until 1983; there’s a theme building here…)
    The link above is worth a squint regarding MP’s salary and benefits, as it provides a handy history, and overview of what the buggers can trouser.

    Reply
  2. The Remittance Man Avatar
    The Remittance Man

    Swiss Tony keeps going on about reform of the House of Lords because heriditary peers have little relevence to modern life. But even the richest heriditary Lord has to manage his estate and wealth and is faced with punitive taxation at every turn. I say it’s the Commons that needs reform.
    The democratically elected representatives of the people continue to insulate themselves from the real world (the one they fuck up daily with their decisions)and act as if its their right to plunder the public purse for their own comfort.
    Just this week we have had Geoff Hoon unable to explain why he claims twice as much as he really needs to run his constituency home and now we have the entire house deciding to quietly make up for a shortfall in their overly generous pension scheme at our expense.
    And then they all sit around (in their subsidised canteens and bars) and wonder why the general public loathes their guts.
    Terry Pratchett once described a place where the day after an election the new PM was automatically put in jail because the electorate found it saved hassles later. He wrote in jest, but I’m beginning to think we really do need a policy like that in Britain.
    Ropes. Trees. MPs. Some assemby needed. Entirely suitable viewing for children as young as 3 years. Batteries not required.
    RM

    Reply
  3. the great redacto Avatar
    the great redacto

    Was it breathtaking arrogance or merely the usual stupidity that made Hoon think there would not be a hoo-har when this was announced. Coming two weeks after the Govt said it wouldn’t help people mis-sold personal pensions, it has to be one or the other.

    Reply
  4. Martin Avatar
    Martin

    Tim,
    Our MP’s should be called upon to display their bona fides by agreeing to the privatisation of their pension scheme.

    Reply

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