NOW TAXPAYERS BAIL OUT MP PENSIONS....

Now taxpayers bail out MPs' pensions
By Ben Russell
Wednesday, 1 April 2009SHAREPRINT ARTICLE EMAIL ARTICLE TEXT SIZE NORMALLARGEEXTRA LARGE
A fresh row over MPs' pay and perks erupted after taxpayers were asked to foot an £800,000-a-year bill to bail out their gold-plated pension scheme.

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Under the plans unveiled by the Leader of the Commons, Harriet Harman, the Exchequer will increase its contribution from £12.4m to £13.2m a year. MPs will each have to pay an extra £60 a month to help fill a £51m black hole in the parliamentary pension fund.

The package was published after government financial experts found a growing deficit in the pension scheme because former MPs were living longer.

The Government Actuary said that taxpayer contributions to the scheme – already one of the most generous in the country – would have to increase by £2.1m a year to cover the shortfall.

Ms Harman said she wanted MPs to increase their payments into the scheme from 10 per cent to 11.9 per cent – equivalent to £60 a month – to help limit the extra bill for the taxpayer.

Steve Webb, the Liberal Democrat pensions spokesman, branded the decision a "spectacular own goal for MPs". "The pensions of MPs and other well-paid public sector workers have to be brought in line with reality. With members of the public losing their jobs and seeing their pensions plummet, MPs cannot insulate themselves from the harsh realities of the recession."
[link to www.independent.co.uk]