He and Lord Chancellor Jack Straw would forgo the right to take an immediate pension of half their salaries as soon as they leave office under Downing Street proposals.
Under the proposed changes, any ex-premier or lord chancellor - currently on pounds 104,386 a year - would not receive any pension until the age of 65.
The last religious figure to be Lord Chancellor was the Archbishop of York in 1625.
The Lord Chancellor's Department was founded in 1885.
The former Lord Chancellor's son Douglas Hogg MP said his father passed away at his London home on Friday.
He served as Lord Chancellor under Edward Heath and Margaret Thatcher.
THE former Lord Chancellor
Lord Hailsham has died after a long illness, aged 94.
The Conservative former deputy Prime Minister, Lord Howe of Aberavon, said that previous Lord Chancellors
would have 'instinctively and intuitively' understood the difference between political campaigning and fund-raising.
Controversial Lord Chancellor
Derry Irvine will no longer have to walk backwards in front of the Queen, it was revealed yesterday.
The heat was turned up on the Lord Chancellor
yesterday when the Tories demanded his resignation over what they have dubbed the 'cash for wigs' affair.
Over the years, the office had developed into something of a constitutional anomaly whereby the Lord Chancellor
acted as judge, government minister and Speaker of the House of Lords.
With the new Lord Chancellor
, Lord Falconer of Thoroton, presiding from the Woolsack, Lord Williams said if the message from the Lords was ``please continue to choose a Speaker for us, I am sure the Prime Minister will oblige''.