MSPs could be given the chance to award themselves more generous pensions.

A special parliamentary committee set up to look at the MSPs' pension scheme has published a consultation document outlining the options they were considering.

At the moment, MSPs are entitled to one-50th of their final salary for every year they are in parliament.

The consultation paper suggests that MSPs be given the option of a one-40th scheme, which would mean they would be entitled to a bigger pension for a shorter length of service.

However, they would also be expected to increase the proportion of their salary they contribute into the pot, from 6% to 10%.

Any changes to the current set-up would require legislation, which would be voted on by MSPs themselves.

Critics last night pointed out that final-salary schemes are being phased out in the private sector as companies claim they are no longer affordable.

Matthew Elliott, the chief executive of the Taxpayers' Alliance, said: "Against this backdrop, it's astounding that MSPs are opting for a more lavish gold-plated scheme that is funded by even more of our money. The Scottish Parliament makes Goldman Sachs look like a poorhouse."

Members of the House of Commons and the Welsh Assembly are already able to choose between a one-50th and one-40th scheme, with the vast majority choosing the latter.

Alasdair Morgan MSP, who is the convener of the Scottish parliamentary pension scheme committee, said changes to pensions law at Westminster meant that Holyrood had no option but to alter their own arrangements.

"The committee has not been set up either to make the scheme more generous or less generous," he said. "If we did nothing, the scheme would be illegal in three or four years' time, so that is not an option.

"We have to bring in a new scheme, but I suspect that most of it will be identical to the old one."

The pensions review comes at the same time as the Scottish Parliament is examining the MSP allowances systems, with some members being severely criticised for arguing that they should get more money.

Alex Neil, an SNP backbencher at Holyrood, said members of the public had to realise that attractive pay and conditions were needed if we were to get the best standard of MSPs.

He said: "We're already paid 12.5% less than Westminster MPs and I believe we do twice as much work," he said.

"My own preference is that given everyone else is having problems with pensions, we should stick with the one-50th scheme, but the public also have to realise that if they want better quality MSPs they have to pay for it."

The parliamentary committee will also examine the system which governs the pensions of the former first ministers and the presiding officers to see whether it should also be linked to length of service.

It was also confirmed yesterday that from next year, new health service workers will have to work longer before they can retire.

The normal retirement age for NHS staff will rise from 60 to 65 for workers who join from April.