Public Sector Pension Reform
Scottish Government consults on increases in employee contributions for NHS, Teachers', Police and Firefighters' schemes in Scotland.
In October 2010, Lord Hutton of Furness published the interim report of his independent review of public sector pensions, commissioned by the Chancellor of the Exchequer. This included a conclusion that, if the UK Government wished to make savings to the costs of public sector pension schemes in the short term, it would be more effective to increase member contributions rather than alter the benefit structure of schemes.
Finance Secretary John Swinney delivered a statement on public sector pensions in the Scottish Parliament on 28th November 2012. Whilst re-emphasising that UK Government sets the basic terms for public service pensions in Scotland he outlined the clarifications he has received from UK Ministers on the extent to which the Scottish Government has the flexibility to negotiate the detail of Scottish schemes.
Earlier consultations confirmed the Scottish Government's intention to introduce increases in average employee contribution rates to the NHS, Teachers, Police and Firefighters' pension schemes in Scotland, via new, tiered member contribution rates with effect from 1st April 2012.
In the case of the Local Government Pension Scheme in Scotland, Mr Swinney announced that the Scottish Government will leave decision making on whether to apply these increases to the Local Government Pension Scheme to those who manage that Scheme.