Five years as an MP buys you five-fortieths of final salary (£64,000) in retirement. Their pension package is also inflation-proofed and includes a widows’ pension.

The Tories have promised to scrap defined benefit pensions for MPs if they win the next election but any such proposal will still have to be voted in by a majority of MPs because they get to set their own pay. They voted to improve the accrual of benefits from one-fiftieth to one-fortieth of final salary per year in office so it is difficult to imagine they will do away with their scheme altogether.

Public outrage over MPs’ expenses makes it likely we will see more than 200 new MPs take office next year, each entitled to immediate membership of the pension scheme; existing members will not be affected by any subsequent closure.

Average British citizens have no access to final salary-style pensions – 96 of the UK’s 100 largest listed companies have already closed such schemes to new employees – and have probably seen big losses in the pensions they have bothered to save for themselves, now they suffer the injustice of being asked to stump up for MPs as well.

Although many MPs will tell you that last year they approved a “cap” on Treasury contributions to the scheme, this cap only comes into effect if the scheme is fully funded – something most public sector pensions are not. And anyway, if the scheme was fully funded, what need would there be for a cap?

In conclusion, Nina Montagu-Smith asked, “when will we get more than just smoke and mirrors from those who claim to be representing our interests?”

Daily Telegraph

Under defined contribution schemes, staff pay money into a pension fund during their working life, which is topped up by their employer. When they retire they use this fund to buy a financial product – known as an annuity – which provides them with an income in retirement. The annuity can be bought from the pension fund supplier, or on the open market, and it is lack of provided information on the second option which is worrying the regulator.

“Our review showed us that there is a lot of good practice in the industry now, and that this is found across a range of scheme types and sizes,” said the regulator. “However, the results also give us some cause for concern as members are not always presented with helpful and timely information as they approach retirement.”

The regulator’s review concluded that
• 57% of the schemes it examined had “some scope for improvement” in the standard of information they gave
• 30% were breaking the law, mainly by not giving out information to their members on their options at least six months before retirement
• 6% had serious problems with their literature or retirement processes
• 2% did not offer the open market option at all.

The regulator said that the key decision for someone retiring from a DC scheme is what to do with the cash that has been saved on their behalf. If they want to buy an immediate annual pension the law says they should be given the option of shopping around, both for the type of pension they want and the provider they prefer.

They should not merely be invited to accept a quote from whichever insurance company is running the DC scheme for their employer.

Just over 450,000 annual pensions were set up in 2008, according to the Association of British Insurers, but the size of pension on offer from insurers can vary by as much as 35% between the best and worst quotes for an identical sum of money – and the regulator’s survey found that only 23% of retiring members exercised their right to shop around.

Christian Aid  is due to make around 70 redundancies in efforts to save £6m over the next two years, and Catholic agency Cafod is planning job losses. More could follow at Oxfam as aid organisations suffer from the effects of the recession and the weak value of the pound

Cafod is also planning job losses and some could follow at Oxfam as aid organisations suffer from the effects of the recession and the weak value of the pound.

Christian Aid, which employs about 750 people and had an annual income of £83m in 2008/09, said that declining  donations and the weak value of the pound have hit the charity’s international programme.

“The biggest single factor was a £3m shortfall in target income during Christian Aid week in May,” said John Davison, of Christian Aid. He added the charity aimed to save £3m this year and at least £3m next year.

Cafod also confirmed it will announce job cuts to staff this week but declined to say how many.

A spokeswoman for Oxfam said the charity was “looking into a restructure next year”, and said that this might include some job losses.