The cost of public sector pensions in Scotland Prepared for the Auditor General for Scotland and the Accounts Commission

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In considering how to respond to the findings of the Independent Public Services Pensions Commission, the Scottish Government should:

• provide a clear statement of the aims and objectives of the public sector pension schemes in Scotland

• ensure that it is meeting these aims and objectives by putting put in place arrangements to scrutinise pension provision across the public sector in Scotland, within the context of other aspects of public sector pay and conditions; and as part of this, consider increasing the role of experts to strengthen scrutiny and decision-making

• consider whether differences among schemes in areas such as contribution rates and level of benefits are necessary to realise the objectives of each scheme

• within the legal and financial constraints which apply, decide how best to incorporate changes made at a UK level into the equivalent Scottish schemes to meet its objectives for public sector pension schemes in Scotland

• with councils, decide on the extent and pace of further reform of the LGPS. As part of this, they should have a clear policy on whether to set a cap on the level of future employers’ contributions as a percentage of pay.

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