(1) For section 3(6) (meaning of “a Member’s ordinary salary”) of the Parliamentary and other Pensions Act 1972(“the Act of 1972”) there shall be substituted the following subsections—
(6) In this Part of this Act “a Member’s pensionable salary”, in relation to a resolution of the House of Commons relating to the remuneration of Members, means a Member’s ordinary salary or, if the resolution provides for a Members’ ordinary salary to be regarded for pension purposes as being at a higher rate, a notional yearly salary at that higher rate ; and for this purpose “a Member’s ordinary salary”—
(a) if the resolution provides for salary to be paid at a rate higher than one or more other rates specified in the resolution to Members other than those who are holders of an office, or in receipt of a salary as holders of an office, or in receipt of a pension as former holders of an office, of a kind specified or described in the resolution, means a Member’s yearly salary at that higher rate, and
(b) in any other case, means a Member’s yearly salary at the rate specified in the resolution.
(7) Any reference in this Part of this Act to a resolution of the House of Commons relating to the remuneration of Members shall be construed, where there are two or more such resolutions for the time being in force, as a reference those resolutions taken together.
(2) For the words “a Member’s ordinary salary”, in each other place where they occur in Part I of the Act of 1972, that is to say in sections 3(2), 4(3), 7(5) (twice), 10(2) and (6) (twice), 16(3) and 25(1), there shall be substituted the words “a Member’s pensionable salary”.
(3) In section 229(1) of the Income and Corporation Taxes Act 1970 as substituted by section 32(1) of the Act of 1972 (annuity premiums of Ministers and other office-holders), for the words “a Member’s ordinary salary”, in both places where they occur, there shall be substituted the words “a Member’s pensionable salary”.
(4) This section shall be deemed to have come into operation on 13th June 1975.