Parliament has passed the Prime Minister’s Pensions and Benefits Bill 2014.
The new Act has legalised pensions and other benefits for former Prime Ministers.
This means a former Prime Minister who has held the Office of the Prime Minister on or after the 7th of July 1978 will be paid a pension at an annual rate of 60 percent of the current salary payable to the incumbent.
The pension payable shall cease during the time the person is re-elected and re-appointed to the Office of the Prime Minister or appointed to a public office.
It will only be restored when a Prime Minister ceases to hold any position in any public office.
Where a Prime Minister dies while he is the Prime Minister or while he is entitled to receive a pension, his spouse will be entitled to be paid that pension at an annual rate of 40 percent of the pension receivable by the pensioner at the time of his death.
However, the spouse will not be entitled to receive the pension if she or he remarries.
It is understood, the pension is to be paid out of the Consolidated Funds.