Do MPs Get a Pension for Life?

Members of Parliament (MPs) in the UK receive a generous pension scheme as part of their benefits while serving in office. Many people wonder whether MPs continue receiving a pension for life after leaving Parliament, and how their pension entitlements compare to those in other professions.

The amount an MP receives in retirement depends on their length of service, salary, and contributions to the pension scheme. Unlike the State Pension, which is funded by National Insurance contributions, an MP’s pension comes from a workplace pension scheme managed by the Parliamentary Contributory Pension Scheme (PCPS).

Do MPs Get a Pension for Life?

Yes, MPs are entitled to a pension for life, provided they have served long enough to qualify for benefits under the Parliamentary Contributory Pension Scheme (PCPS). The scheme works similarly to other workplace pensions, where MPs contribute a portion of their salary, and the government makes additional contributions on their behalf.

The pension is based on the career average earnings of an MP, meaning it reflects their earnings over time rather than just their final salary. MPs can start drawing their pension from the normal retirement age of 65, though this will rise in line with the State Pension age.

How Much Pension Do MPs Receive?

The amount an MP receives in pension depends on their years of service and contribution rate. Under the PCPS, MPs can contribute at different rates, with higher contributions leading to higher pension benefits.

For example:

• An MP earning £86,584 per year (as of 2023) will accumulate pension benefits based on their contributions.

• The accrual rate (how much pension is built up per year) depends on the scheme option they choose.

• MPs with longer service will receive higher pension payouts upon retirement.

Do MPs Get a Pension When They Lose Their Seat?

MPs who lose their seat in a general election or step down voluntarily do not receive an immediate pension, unless they have reached the eligible pension age. However, they may qualify for a resettlement grant or winding-up payment, which helps them transition out of public office.

The resettlement grant is a one-off payment given to MPs who lose their seat. The amount depends on their age, length of service, and final salary. This grant is designed to support former MPs while they find alternative employment.

If an MP has served long enough, they will still receive a pension when they reach retirement age, based on their contributions while in office.

Final Thoughts

MPs do receive a pension for life, but they do not automatically receive payments as soon as they leave office. Their pension depends on their years of service and contributions, and they must wait until retirement age to access it. However, those who lose their seat in an election may be entitled to a resettlement grant to help them transition to a new career.