UK/EUROPE - British MEPs are exploiting a loophole in the European legislative system which lets them claim an additional government-funded pension in retirement.
A number of MEPs with UK-funded pensions have bought into a second EU pension scheme. This could effectively double their pension pot at the expense of the taxpayer.
All British MEPs should receive the same pay and benefits that MPs receive – £57,000 salary and a pension of two-thirds of their final salary after 27 years’ service.
An MEP claiming both a UK and a European pension could retire on two-thirds of a salary equivalent to £114,000.
The EU state scheme open to MEPs is subsidised with European taxpayer’s money which amounts to around £6m each year.
Among those taking advantage of an additional EU pension is the Labour Party leader in Europe Gary Titley, who has pushed for the UK parliament to reform its spendthrift image.
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.