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The Independent Parliamentary Standards Authority (IPSA) published a consultation, 'MPs' pay and pensions: a new package', in July 2013. Although it is not a statutory duty of the Committee to comment on proposals on relating to pay and pensions, it is in within their remit to comment on proposed changes to the expenses scheme. This report responds to question 9 of the consultation which relates to 'completing the modernisation of expenses' and comments on the proposal for an Annual report from Members.
Following its recent public consultation, IPSA confirms in this report that MPs' pension contribution rates will increase by 1.85%. The increase will take effect from 1 April 2012. Given the increases in pension contributions in other public service schemes, IPSA has decided that it is appropriate for MPs to pay more into their own pensions. This decision also recognises the vote in House of Commons last year calling on IPSA to increase pension contributions in line with increases in other public service schemes. Unusually, in their current pension scheme, MPs can select the rate at which they accrue benefits - 40ths, 50ths, or 60ths of their annual salary. In recognition of the already high contribution some MPs make to their pensions (11.9%), IPSA has decided to allow MPs to change the rate at which benefits accrue. Should MPs choose to reduce the rate of their accrual, their contributions would be lower but so too the benefits they receive from the taxpayer. The contribution increase is an interim measure as IPSA carries out its longer term review of pay and pensions - a review which will be complete by the end of 2013 and which will make MPs' remuneration sustainable and fair to MPs and taxpayers alike
The Committee on Standards has considered the Review of the MPs' Scheme of Business Costs and Expenses. Many of the proposals merely propose technical changes and the Committee has no difficulty in supporting these. Such changes include: adding a reference to the Personal Independence Payment (PIP) to the definition of Members' caring responsibilities; increasing the flexibility in the budgets that can be used for claims relating to staff training and employment practice liability insurance; clarifying the rules that overnight hotel claims made by Members' staff should relate directly to a claimable journey; and allowing Members standing down at an election to claim an additional return journey to Westminster. IPSA should consider whether in future such minor changes would require full consultation. There are some proposals where more work and development is needed, and there are others where concerns are graver
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A report that includes the final report from Sir Thomas Legg on the review of past payments to Members of Parliament of Additional Costs Allowance (the 'second home allowance'), and the report from Sir Paul Kennedy on his decisions on appeals from MPs against Sir Thomas' rulings.