Members contribute 5 per cent, of salary to the pension scheme. Provided that they have four years' reckonable service, once they have left the House of Commons they qualify at age 65 for a pension of one-sixtieth of pensionable salary for each year of reckonable service. An actuarially reduced pension may be paid from age 60.
There is a contributory pension scheme to which MPs pay 6½ per cent, of their salaries. If they have served for eight years or more they qualify for a pension at the age of 55. The pension represents 375 per cent, of their salary for each year of service.
After eight years' service ex-MPs are entitled to a pension at age 67 but the speaker and his deputies can authorise payment from an earlier age. Rates are linked to Civil Service (CS) pensions, are adjusted for cost of living increases and vary between DKr 2071 (£207) monthly after eight years' service and DKr 6226 (£623) after 25 years or more. Pensions are abated if the ex-MP receives State old age pension and/or any other public sector, including ministerial, pension. The total pension may not exceed the highest CS rate, currenlty DKr 10240 monthly.
A contributory pension is available at age 55. The size of the pension varies with the number of years over which contributions have been paid.
Federal Republic of Germany:
With effect from 1st April 1977 MPs' pensions are non-contributory. Entitlement is from age 65 with eight years' service: from 60 with 12 years; from 55 with 16 years. Rates vary between 35 per cent, and 75 per cent, of last basic salary, currently between £460 and £1,400 monthly.
There is a compulsory contributory pension scheme for all deputies and senators. After a minimum of eight years' total service a pension of one-fortieth of salary per year of service is payable on retirement. This rises to two thirds of salary after 27 years' service.
Deputies and senators compulsorily contribute the equivalent of £65 a month. After five years' service and age 60, a retired MP receives a taxable pension depending on the number of parliaments in which he has served. The amount of pension varies from 25 per cent, of gross salary, equivalent to £2,200—after 5 years' service up to a maximum of 85 per cent.—£7,530—after 35 years.
MPs receive no special pensions. Few MPs are full-time politicians and most have other occupations.
There is a non-contributory pension payable at age 65 for Second Chamber Members. For every years of service up to a maximum of 20 years they receive 3.5 per cent, of their average salary earned over the last three years of office.