MLAs’ pension pot up by £9m despite Stormont hiatus

It has also emerged that MLAs claimed £8.7m in expenses and allowances last year.

Details are revealed as the stalemate at Stormont over the Northern Ireland Protocol continues.

The assembly has not resumed since last month’s election because the DUP says it will not support the return of the power-sharing government until their issues around the protocol are addressed.

It was established as part of the Brexit negotiations to prevent a hard border on the island of Ireland but unionists argue it has instead created a sea border between Northern Ireland and the rest of the UK.

Although the assembly is not yet back up and running, MLAs are still being paid their salaries of £51,500 and payments are continuing to be made into their pension pot.

There are two pension schemes which cover MLAs. A final salary scheme covers members who were elected before 2016, while a career average revalued earnings (CARE) scheme was introduced in 2016 for those elected after that year.

MLAs pay a percentage of either 9pc or 12.5pc of their salary into the pension pot, dependent on which scheme they are in.

The scheme operates on an “opt-out” basis, meaning all MLAs are members of the scheme from the date they are appointed unless they opt out.

As well as the politicians’ payments, a contribution equivalent to 14.4pc of their salaries is also made into the pension scheme each year from the consolidated fund, which is effectively paid by taxpayers through the UK government.

The Stormont pot also receives money from the investments made with the money paid into the scheme.

In the 2020/21 financial year, a total of £748,890 was paid into the Stormont pension scheme from the
consolidated fund, while MLAs themselves
contributed payments amounting to £474,387.

The investments made by those managing the scheme enjoyed a successful year, with the overall value of the fund increasing from £34,494,862 on March 31, 2020 to £43,348,854 on March 31 last year.

However, the value of a pension pot can fluctuate from year to year and many schemes have been adversely affected by the current worldwide economic difficulties.

Details of how the pension pot fared in the 2021/2022 financial year are not yet available. An assembly spokesperson said it was intended that the year’s pension accounts would be finalised over the summer months and then be audited.

“A detailed timeline for the audit has not yet been developed but the accounts will be published on the assembly website once this process is complete,” the spokesperson added.

If an MLA leaves the assembly or loses their seat, they have a number of options in relation to their pension. They can defer it until the scheme’s normal retirement age or transfer the value of their pension benefits to another scheme.

Departing MLAs are able to access their pension if they have reached the age of 55.

If a politician has fewer than two years’ service at Stormont they are eligible for a refund of contributions they have made to the pension scheme. There is also a “death in service” lump sum paid to a nominated person if an MLA dies while a member of the scheme.

As of March 31, 2021, there were 89 active members of the assembly scheme, with a further 60 deferred members.

Meanwhile, figures published by the assembly show MLAs claimed a total of £8,771,923.67 in expenses in the 2021/22 financial year. This money, which is additional to the politicians’ salaries, is mainly used for the cost of staff and running constituency offices.

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