The Speaker will make a statement to MPs as the government publishes its public service pensions bill that will end the gold-plated scheme for future holders of the three most senior offices of state from 2015.
Under the current system, the Speaker, the prime minister and the lord chancellor are entitled to a pension worth half of their top-up salary – this excludes their salary as an MP – after just one day in their post.
Future holders of the three offices will receive the normal ministerial pension, based on length of service and contributions, under the new bill from April 2015. David Cameron and Kenneth Clarke, lord chancellor until last week, have already announced that they will give up the special pensions. They have been joined by Chris Grayling, who succeeded Clarke in last week's reshuffle.
The Speaker's office declined to comment on the nature of Bercow's announcement on the grounds that MPs must hear first. It is expected, however, that he will follow the example of the prime minister and the current and immediate former lord chancellor. Danny Alexander, the chief secretary to the Treasury, has created the pension bill, which is designed to save £65bn over the next 50 years.
The changes include ending final salary pension schemes in favour of schemes based on career average earnings; asking public sector workers (except members of the armed forces, the police and firefighters) to retire at the same time as other workers; and increasing contributions. Anyone who was within 10 years of retirement under the old rules in April this year will be exempt from the changes.
Alexander said: "This bill is the final stage in delivering sustainable public service pensions. It will cut the cost to taxpayers by nearly half, while ensuring that public sector workers, rightly, continue to receive pensions among the very best available. This is a good deal for taxpayers and a good deal for public service workers: a settlement for a generation."
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