MP pension cost soars

Thu, 10 Jan 2008

A recent estimate by the House of Commons indicates that pensions for MPs will now cost UK taxpayers as much as three times the original estimate. The bill spent on funding the hefty final salary pension schemes will run over 20 million, as much as £29,000 per MP. Previously, the House of Commons estimated the total cost as just £7.8 million.

The cost of pensions for retired politicians comes even amidst government warnings that workers must contribute more of their own money in order to enjoy a decent retirement . The final salary pension schemes devised for the ministers are amongst the most generous in the world. The pension schemes will also remain open to new employees, despite many employers closing their schemes.

The pensions consultant that discovered the change, John Ralfe, reportedly commented: "It is very convenient for MPs that the cost of their pension is underestimated. I am sure the Senior Salaries Review Body is squirming. The body has not disclosed what pension costings it has used. Its recommendations will differ drastically depending on whether it has used the understated pension costings."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.

1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.

Join the Pensions NewsletterPensions Newsletter

Please enter your email below and subscribe to our monthly newsletter

Save money on your mortgageSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.