Explanatory note

This Order makes various amendments to the pension scheme for United Kingdom Representatives of the European Parliament, made under section 4 of the European Parliament (Pay and Pensions) Act 1979.

Articles 2 and 3 increase the accrual rate from fiftieths to fortieths and the contribution rate from 6 per cent to 9 per cent of salary. The changes have effect from 15th July 2002, but Representatives in service on 15th July 2002 have an option to backdate their increased contributions and accrual rate to 5th July 2001. Representatives are also given the option to contribute at the rate of 6 per cent and to accrue their pension in fiftieths.

Article 4 amends article 10 in the principal Order to provide that service in the House of Commons, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly counts towards the qualifying period for an early retirement pension, except where the service is concurrent with membership of the European Parliament.

Article 5 amends article 14 and Schedule 5 in the principal Order so that, in the case of participants dying on or after 1st April 2001, all dependant children will receive equal treatment in respect of benefits.

Article 6 amends article 16 in the principal Order to increase the lump sum death in service payment from three times annual basic salary to four times annual basic salary.

Section 4(3)(g) of the European Parliament (Pay and Pensions) Act 1979 confers express power to make Orders retrospective in effect. Articles 4 to 6 take effect from 1st April 2001.