Section 4
Pensions in respect of service as Prime Minister, Deputy Prime Minister, Speaker, Ministers and other office-holders
of Parliamentary Pensions Act 1978
(1)
Subject to the provisions of this Act, a person may be granted a pension under this section, in addition to any pension that may be granted to the person under section 3, in respect of his or her reckonable service in any office if, after 1 September 1978, he or she ceases at any time to hold office and has not less than 8 years’ reckonable service as an office‑holding Member (whether continuously or not).
(2)
The annual amount of pension payable to an office‑holding Member is —
in respect of every completed year of reckonable service in any office, or where he or she has served in more than one office in each office — at the rate of one‑twenty‑seventh (1/27) of his or her annual salary in that office; and
in respect of any remaining uncompleted year of reckonable service in any office, or where he or she has served in more than one office in each office — at the rate of one‑three‑hundred and twenty‑fourth (1/324) part of his or her annual salary for each completed month of reckonable service in that office.
(3)
The annual pension payable to any office-holding Member under subsection (2) must not exceed two-thirds of the highest annual salary of any office held by him or her.
(4)
Subject to sections 13 and 15, a pension granted under this section continues for the life of the person to whom it is payable but is not payable in respect of any period during which he or she is again an office‑holding Member; at the end of that period the pension is again payable and must be re‑computed with the addition of that period comprising reckonable service to the period of his or her former reckonable service as an office‑holding Member.
(5)
For the purposes of subsections (2) and (3), “annual salary”, in relation to any office, means the annual equivalent of the highest monthly rate of salary (excluding any non-pensionable allowances) received by an office‑holding Member during any period of reckonable service as a holder of that office.
(6)
Where the monthly rate of salary applicable to any office previously held by an office-holding Member is increased before 21 May 2011 during any continuous period of reckonable service while he or she is an office‑holding Member but holding another office, that Member is deemed to have received such increased rate during his or her period of reckonable service as a holder of that office.