A committee of MPs that manages Victoria's taxpayer-funded parliamentary scheme will be disbanded.
The move comes as the committee prepares to do battle with the tax office in the Federal Court on Monday over whether Victorian MPs should have to pay a superannuation tax.
The tax for high income earners applied from August 1996 so members of the Victorian public sector superannuation schemes pay the tax like other Victorians.
But the committee, known as the Parliamentary Trustee, is challenging the Commissioner of Taxation about whether the tax applies to Victorian MPs.
If the court appeal is successful, the move will add thousands of dollars a year to the pensions of Victorian MPs.
A Victorian government spokeswoman said it would introduce legislation to the parliament to close the committee of MPs.
She said the committee had previously administered a now-closed superannuation fund with falling membership.
"In the context of contemporary financial management it is appropriate that the administration of MPs superannuation is independent of MPs and the parliament," she said.
"The responsibility for that fund will be transferred to the Emergency Services Superannuation Board, which is currently responsible for all other similar public sector superannuation.
A full court hearing of the matter has been scheduled for Monday at the Federal Court in Melbourne.