MPs prepare to lose gold-plated pension plans The dispute over pay rises has seen David Cameron claim it would be "unthinkable" for the cost of politics to increase, while Ed Miliband, the Labour leader, has said MPs" rises should be limited to one per cent - in line with most public-sector workers. However, Ipsa was given full statutory control of MPs" pay and pensions in the wake of the 2009 expenses scandal, exposed by The Telegraph, and under the rules, parliamentarians do not get a simple vote on its recommendations. If Ipsa insists on a big rise - a move bound to be highly unpopular with voters - MPs may have to pass a new law in order to reject it. The suggested salary increase has provoked criticism and, yesterday, Nigel Farage, leader of the UK Independence Party, chimed in on the issue, saying that MPs" pay should be "linked to responsibility" and that they should get a 75 per cent salary cut because they had given away 75 per cent of their responsibilities to Europe. "This would save the taxpayer money and ensure we had a referendum on our membership of the EU very quickly," Mr Farage said. Amid the chaos, senior figures have been exploring the move which would end final-salary schemes for MPs. Currently they pay a fixed rate of 13.75 per cent of their £65,738 annual salaries into the scheme, which pays out when they reach 65. They can build a pension of roughly £30,000 a year after 20 years. Payments to retired MPs cost the taxpayer about £13.5 million a year. The new move could see MPs being shifted on to a pension scheme based on their average earnings over the course of their parliamentary careers, similar to the arrangement reached with millions of public-sector staff - including local government workers, NHS staff, teachers and civil servants. The new public-sector deals will be phased in from next April. Sir Ian has already signalled that MPs face big changes to their generous pension arrangements, saying last year: "It is more expensive to the taxpayer and the benefits are greater than associated with most other public sector pensions." A Downing Street spokesman said that, under "the current process," Ipsa's report would be followed by a period of consultation, after which the watchdog had the power to make the final decision on what MPs should be paid. Mr Cameron is understood not to have seen a copy of Sir Ian's recommendations.