Is this the end of MPs' gold-plated pensions? Overhaul of politicians' pay could scrap range of perks Sir Ian Kennedy wants to cut down MPs' pensions and 'goodbye grants' Despite criticising 'excessively generous' perks, he advises £10,000 pay rise Cameron, Miliband and Clegg have argued against any MP pay rises Critical: Sir Ian Kennedy, Chairman of the Independent Parliamentary Standards Authority, wants to trim down MPs' perks Gold-plated pensions and "goodbye grants" worth tens of thousands of pounds for MPs could be scrapped under an overhaul of parliamentarians" pay. The perks have been branded a reminder of the "old, cushioned world of privilege" by Sir Ian Kennedy, the chairman of the Independent Parliamentary Standards Authority (IPSA). This week the watchdog is expected to unveil a scaling back of the "excessively generous" pensions entitlements and golden goodbyes that many MPs enjoy as part of IPSA's review of pay and expenses. However Sir Ian is also expected to controversially suggest a pay rise for MPs of around £10,000. This would take their basic pay to around £76,000. Sir Ian has argued more pay is necessary to avoid a repeat of the 2009 expenses scandal. But Sir Ian said that overall, his proposed reforms would make MPs cheaper for the taxpayer. It is believed he will target pensions and resettlement grants in an attempt to thwart public anger over any pay rises. MPs who lose their seats can get up to £33,000 to help them "resettle" into ordinary life. The pay-off is virtually unheard of in the private sector, where many ordinary workers are made redundant with barely a few weeks" severance pay. When 200 MPs lost their seats at the last general election, taxpayers had to fund £7 million in resettlement grants. Officials are also discussing ending final salary pensions for MPs. Currently, they pay 13.65 per cent of their annual salaries into the scheme - a higher contribution than most workers. Controversial proposal: Sir Ian's suggestion of a parliamentary pay rise of nearly £10,000 to £75,000 a year will be published in the coming week However, they also get much more generous pay-outs, around £30,000 a year in retirement after 20 years. Taxpayers spend £13.5 million a year funding pensions of retired MPs. One proposal is to pay MPs a pension based on their average earnings during their parliamentary careers. This would be line to the deal given to millions of public sector staff which will be phased in from next April. Writing in the Sunday Times, Sir Ian said: "Given what has happened elsewhere in the public sector, MPs" excessively generous pension arrangements seem out of place. Similarly, resettlement allowances, which until recently were worth up to one year's salary to compensate an MP who lost his or her seat or who decided to stand down from parliament, are a reminder of the old, cushioned world of privilege and make no sense to the general public. "The very notion that we have to "resettle" former MPs is odd. These pay-outs are a historic peculiarity. David Cameron, Ed Miliband and Nick Clegg have all argued against any pay rises for MPs at a time of austerity. Austerity: Nick Clegg, left, and David Cameron, right, have both advised against any pay rises for MPs Controversy over the proposed pay rise grew as it emerged that around 200 Commons cleaners, cooks and manual workers faced the axe to pay for the pay rise. The move would have saved £6.5 million. But it was rejected by officials who warned of a public backlash if the money was funnelled back into pay rises for MPs. Sir Ian is expected to unveil his plans on Thursday, before they are put out for consultation. MPs will not have any say, however, as Parliament handed over the final decision to IPSA. In the past, MPs had a vote on their pay, a move which led to many vetoing pay rises for fear of looking greedy to their constituents.