Brown orders review to cut cost of MPs' pensions

Published on Friday 13 February 2009 23:47

THE Prime Minister yesterday ordered a major review of MPs' pension arrangements – to put brakes on their escalating cost.

Gordon Brown wrote to the chairman of the Senior Salaries Review Body, Bill Cockburn, asking him to "consider the full range of options for reducing the Exchequer contribution" to MPs' pensions, which cost the Treasury 12 million a year.

Mr Brown made clear that he wants the body to look at the possibility of raising the retirement age or ending the final-salary scheme for the pensions, regarded as "gold-plated".

The move will spark speculation that Mr Brown may be paving the way for reform of public sector pension schemes, frequently criticised for being over-generous as they have not followed hundreds of private schemes by moving to defined contribution plans dependent on stock market investments.