All in this together

The newspapers reported the other day that MPs are planning to fight attempts to make them pay more into their pension pots.

Apparently the MPs who run the parliamentary pension scheme are to defy a government order - that they should face the same reforms to their pensions - as those planned for other public sector workers.

Instead the MPs argue that they are already among the highest contributors in the public sector – paying 11.9% of their salary – and had a rise in their own contributions only two years ago.

Now that's as maybe - but the MPs' pension scheme benefits are far more generous - so it's not a fair comparison to make. 

The government wants to pass the whole issue over to IPSA - the independent body that was set up to deals parliamentary pay following the MPs' expesnes scandal.

The government's stated position is that - "There is no case for MPs being treated differently from other public servants."

Good for the government - because broadly speaking MPs should be treated in the same way as everyone else. 

But Brian Donohoe - the Scottish Labour MP who chairs the trustees of the parliamentary scheme - said they would argue for less than the suggested 5% increase because:

"MPs have already paid an additional 1.9% and that was increased about 25 months ago. If people know how much we pay compared with elsewhere I think we can make a case."

The government has planning to increase pension contributions by an average of 3.2 percentage points - but those earning under £18,000 will be protected - meaning high earners will pay more.

The chief secretary to the treasury - Danny Alexander - has said the highest increases would be capped at five percentage points - which will affect MPs who currently earn £65,738 a year.

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