Timetable to build new Scottish pension scheme

New phase in Scottish Local Government Pensions campaign

by John Stevenson

A new Scottish local government pensions deal has taken a step closer with unions and employers set to start hammering out a timetable on 1 November.

This follows the Scottish Executive recognising a Scottish scheme would need more time to develop, breaking any remaining links with the English scheme timetable.

"It is likely the scheme will be developed towards summer 2007 followed by consultation, parliamentary work and setting up systems. This probably means implementation in early 2009", said Dave Watson, UNISON's Scottish Organiser (Policy).

Unions, the Convention of Scottish Local Authorities (CoSLA) and the Scottish Executive all come together under the oddly named SLOGPAG (Scottish Local Government Pension Advisory Group). This body is tasked with developing a new-look Local Government Pension Scheme for Scotland.

At SLOGPAG's meeting last month, CoSLA tabled a revised list of key issues that reflected separate discussions with the unions. For full details of the key issues and UNISON's position, see www.unison-scotland.org.uk/briefings/pensions130906.html.

"In addition we have added a review of pension fund governance and indicated that there may be a number of other amendments to the scheme that reflect our consultation with members", added Dave.

Any new scheme would also have to include an equality impact assessment. "CoSLA have retained actuaries who will work up detailed costings of a final salary scheme at different accrual rates using actual Scottish fund figures. This is the essential starting point for discussing a new scheme and will give us a clearer indication of the costs."

The regulations implementing the tax changes have been tabled in the Scottish Parliament on 6 October. The regulations abolishing the Rule of 85 (see Judicial Review below) and for the more favourable Scottish transitional arrangements will be put forward shortly with an implementation date of 1 December 2006.

The minister has now published his approach to the proposed Discretionary Compensation Regulations. This has been the subject of consultation in England where the main proposal is to remove employer discretion to award compensatory added years for those made redundant or retired on the grounds of efficiency over the age of 50.

Following representations from UNISON the minister has decided not to publish similar proposals in Scotland. Instead he has indicated he may consider the issue again once the UK review of severance arrangements in the Teachers Pension Scheme has been completed.

Dave said: "We are pleased that the minister recognised the strength of our argument that we should avoid different provisions for staff working in the same workplace. This is a welcome decision that shows that ministers in Scotland are seriously listening to our concerns"

Seminar 22 November

"The very welcome agreement on scope and timescales means we now have time to develop the Scottish LGPS", said Dave. "We are planning an LGPS seminar on 22 November in Glasgow from 11am to around 3pm. Details will follow and we anticipate being able to look in detail at the issues surrounding the new scheme."

Judicial Review - Rule of 85

The decision of the judge in UNISON's case in England has been received and we lost the case. In his ruling, the judge said the consultation process was not flawed and even if the Department for Communities and Local Government had wrongly interpreted the European Directive on age discrimination to mean that they could not protect low-paid women workers in this instance, they would still have made the same decision based on cost. See www.unison.org.uk/pensions

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