Pensions Act 1995

170 Pensions for dependants of the Prime Minister etc

(1) Section 27 of the [1972 c. 48.] Parliamentary and Other Pensions Act 1972 (application of certain provisions with modifications in relation to the Prime Minister and the Speaker) is amended as follows.

(2) For subsection (1)(b) (amount by reference to which dependant’s pension calculated) there is substituted—

“(b) for the purposes of that scheme, that person’s basic or prospective pension were of an amount equal to his section 26 entitlement”.

(3) After subsection (1) there is inserted—

“(1A) For the purposes of subsection (1)(b), the amount of a person’s section 26 entitlement—

(a) where at the time of his death he was entitled to receive a pension under section 26 of this Act (whether or not, by virtue of subsection (2) of that section, the pension was payable), is the annual amount of the pension to which he was entitled under that section at the time when he ceased to hold that office or (if later) on 28th February 1991, and

(b) where at the time of his death he held office as Prime Minister and First Lord of the Treasury or as Speaker of the House of Commons, is the annual amount of the pension to which he would have been entitled under that section if he had ceased to hold office immediately before his death,

but in either case, any provision which deems such a pension to have begun on a day earlier than the day referred to in section 8(2) of the [1971 c. 56.] Pensions (Increase) Act 1971 shall be disregarded.”

(4) For the purposes of the [1971 c. 56.] Pensions (Increase) Act 1971, a pension payable under section 27 of the [1972 c. 48.] Parliamentary and Other Pensions Act 1972 in respect of a person who ceased to hold the office of Prime Minister and First Lord of the Treasury or Speaker of the House of Commons before 28th February 1991 shall be deemed to have begun on that date.

(5) Where a person—

(a) is entitled to receive a pension under that section by reason of the death of a person who, at any time before the commencement of this section, held the office of Prime Minister and First Lord of the Treasury or Speaker of the House of Commons, and

(b) the amount of that pension determined in accordance with subsection (6) is greater than the amount of the pension determined in accordance with subsections (1) to (4),

it shall be determined in accordance with subsection (6).

(6) The annual amount of the pension shall be determined as if—

(a) subsections (1) to (3) had not been enacted, and

(b) for the purposes of the [1971 c. 56.] Pensions (Increase) Act 1971, the pension had begun on the day following the date of the death.

(7) This section has effect, and shall be treated as having had effect, in relation to any person who becomes entitled to a pension payable under section 27 of the [1972 c. 48.] Parliamentary and Other Pensions Act 1972 on or after 15th December 1994.