HOUSE OF COMMONS MEMBERS' FUND
 
A number of former Members of Parliament and dependants were left with no or very little pension under previous Parliamentary pension arrangements.  The House of Commons Members' Fund provides as-of-right payments to former Members aged over 65 with at least 10 years' service prior to 1964.  In addition, those suffering hardship can apply to the Members' Fund for assistance, but this assistance is available only after consideration by the Trustees of the applicant's needs.
 
The Members' Fund is financed through contributions from Members (£2 per month) and a contribution from the Exchequer at the rate of £215,000 per year since 1991.
 
PENSIONS FOR THE PRIME MINISTER, SPEAKER AND LORD CHANCELLOR
 
Prime Ministers, Speakers and Lord Chancellors are entitled to pensions paid directly from the Consolidated Fund on leaving office. The pensions are ex officio: there is no minimum qualifying period and no contributions are payable. These arrangements stem from Parliament's desire to protect the dignity of the "Three Great Offices of State".
 
The Parliamentary and Other Pensions Act 1972, as amended by the Ministerial and other Pensions and Salaries Act 1991, entitles current and future holders of all three offices to pensions of one half of the annual salary payable at the time they leave office.  The only condition for payment is that a former Prime Minister or Speaker is not in receipt of any salary payable from the Consolidated Fund or the revenues of the Duchy of Lancaster, or out of monies provided by Parliament other than the Parliamentary salary. Pensions are uprated annually in line with the Retail Price Index.
 
The Lord Chancellor is entitled to a lump sum on ceasing to hold office of twice his annual pension under the Judicial Pensions Act 1981.  There are no lump-sum provisions for the Prime Minister or Speaker.
 
The Parliamentary and Other Pensions Act 1972, as amended by the Parliamentary and Other Pensions Act 1987, gives the Leader of the House powers (exercisable by statutory instrument) to make pension provision for dependants of former Prime Ministers and Speakers.  These pensions are paid from the Consolidated Fund on a similar basis to dependants' pensions in the PCPF.  Pension benefits for a Lord Chancellor's dependants are provided for in the Judicial Pensions Act 1981.
 
The Judicial Pensions Act 1981 provides for a lump sum equal to twice the annual amount of the pension for which the Lord Chancellor would have been eligible, or his last annual salary, whichever is the greater, to be paid to his personal representative if he should die in office. There are no corresponding provisions in respect of the Prime Minister or Speaker (apart from the death in service benefits payable from the PCPF if they have chosen to participate in the scheme.)
 
A Prime Minister or Speaker can choose to remain in the PCPF for service from 28th February 1991 and participate in the basic scheme (but not the supplementary Ministerial scheme) for service following their appointment, on the basis of their Parliamentary salary.  If the Prime Minister or Speaker does not choose to remain in the PCPF, no election to rejoin can be made after leaving office.
 
Where an individual becomes Prime Minister, Speaker or Lord Chancellor after having contributed into the PCPF, the Trustees are required to pay a transfer value into the Consolidated Fund.