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Cabinet Secretary for Finance, Employment and Sustainable GrowthJohn Swinney MSP
T:0845 7741741
Kezia Dugdale MSPThe Scottish ParliamentEdinburgh
EH991SP
Your ref: KS-11/08/11Our ref: 2011/1014829
1... September 2011
Scottish Police Pensions
Thank you for your letter of 11 August to the Cabinet Secretary for Justice, Kenny MacAskiliMSP regarding Scottish police pensions. I am replying as I am responsible for public service
pension schemes in Scotland, including the police schemes.
It may help if I explain that the responsibility for occupational pensions policy is reserved toWestminster. Although Scottish Ministers have limited powers for some public sector
pension schemes including the Police Scheme, these are subject to significant legislativeand financial constraints by the UK Government. As such, there is no scope for
Scottish Ministers to adopt different solutions from those being advanced by the
UK Government-in respect of overall pensions policy, and often little scope to adopt differentsolutions in respect of specific public sector pension schemes.
You will be aware that in June 2010 the UK Government commissioned Lord Hutton to
conduct an independent review of public sector pensions, details of which can be found on
HM Treasury's website: http://www.hm-treasury.gov.uk/indreviewjohnhuttonpensions.htm.
The UK Government asked Lord Hutton to provide both short and long-term proposals for
ensuring that public sector pensions provision remains fair and affordable. Lord Huttonissued an interim report on 7 October 2010 which concluded that public sector workers
should pay more for their current pension benefits. The UK Government subsequently
announced its intention to increase employee contributions to public sector pension schemes
by an average of 3.2% of pay between April 2012 and April 2014 and, on 28 July 2011, the
Home Office issued a letter confirming its intention to formally consult on proposals for
changes to member contributions.
St Andrew's House, Regent Road. Edinburgh EH1 3DG
www.scotland.gov.ukI~""EST()R IS PF.OPLH
mailto:[email protected]://www.hm-treasury.gov.uk/indreviewjohnhuttonpensions.htm.http://www.scotland.gov.uk/http://www.scotland.gov.uk/http://www.hm-treasury.gov.uk/indreviewjohnhuttonpensions.htm.mailto:[email protected]8/4/2019 John Swinney Scottish Police Pensions
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The Scottish Government is clear that public service pensions must continue to be
affordable, sustainable and fair. Scottish Ministers are, however, very concerned by the UK
Government's proposals to increase employee contributions from April 2012, given the
current pressure on household budgets. Our opposition to the UK Government's approach
was outlined in my statement to Parliament on 22 June at the following link:
http://www.scottish .parliament. uk/Apps2/Business/ORSearch/ReportVi ew. aspx?r=6314,
which called on them to think again, recognising that policy responsibility for this issue is
primarily reserved
I am continuing to press the UK Government to respond favourably to the concerns raised by
the Scottish Government. We will take decisions on this UK Government policy in due
course and as part of that process will consult with pension scheme stakeholders.
Regarding your constituent's comments on the Winsor Review, the Scottish Government
reached a deal on the terms and conditions of Scottish officers for 2011/12, following
constructive talks with the three police staff associations, Association of Chief Police Officers
in Scotland and the Convention of Scottish Local Authorities. The agreements will save
forces-around 8 million that can now be used to help protect frontline-police-services in
Scotland.
The recommendations from the Winsor Review part 1, for officers in England and Wales,
have been commended to the Police Negotiating Board for the UK. The Scottish
Government has always worked closely with the Scottish representatives of thePolice Negotiating Board, and is committed to continue working in this way. No decisions on
terms and conditions for Scottish officers will be made without discussion.
JOHN SWINNEY
St Andrew's House, Regent Road, Edinburgh EHl 3DGwww .scot land .gov .uk
http://www.scottish/http://www.scottish/8/4/2019 John Swinney Scottish Police Pensions
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