Scottish independence impact on LGPS

andyfr_2

I have been thinking about this since a referendum on Scottish independence was first mentioned and I am concerned about the implications.

I am in the Scottish LGPS and am due to retire in 2017. If Scotland gets independence and adopts the Euro I assume that my pension would be in that currency. If we moved to England I also assume that it would continue to be paid in Euros and as such my pension would be subject to the fluctuating exchange rate.

BobQ

andyfr wrote: »

I have been thinking about this since a referendum on Scottish independence was first mentioned and I am concerned about the implications.

I am in the Scottish LGPS and am due to retire in 2017. If Scotland gets independence and adopts the Euro I assume that my pension would be in that currency. If we moved to England I also assume that it would continue to be paid in Euros and as such my pension would be subject to the fluctuating exchange rate.

One of the many many intriguing questions arising from a Yes vote!

I suspect that you are right but I doubt that there will be any clear guidance on such issues for sometime.

I would imagine that the pension would be paid in the currency in which the funds are held and that you will have to live with that outcome as many Brits do now if they retire to Spain.

davidscot

andyfr wrote: »

I have been thinking about this since a referendum on Scottish independence was first mentioned and I am concerned about the implications.

I am in the Scottish LGPS and am due to retire in 2017. If Scotland gets independence and adopts the Euro I assume that my pension would be in that currency. If we moved to England I also assume that it would continue to be paid in Euros and as such my pension would be subject to the fluctuating exchange rate.

This is an example of another 'grey area' that our politicians will not be able to explain fully until the referendum has been held. Too many questions left unanswered to persuade me to vote yes.

Andy_L

Isn't the current SNP position that they would continue to use sterling or peg the "Scottish pooond" to sterling?

moneyistooshorttomention

My personal feeling is that an Independence Vote for Scotland is a lot more likely now that it looks as if Scotland would have to re-apply to join the E.U. as a separate country (it's certainly a good way for one part of Britain at least to get out of the E.U. quite easily - ie have the sense NOT to apply).

If they were daft enough to ask to join the E.U. in their own right - I can't imagine they would be that daft as to accept having the Euro as a currency (I think everyone by now accepts the Euro as a currency is a "dead duck" - even those countries that already have it).

If I lived in Scotland I would just be feeling very grateful that the chances are good that we would soon be out of the E.U. and not worrying that I might get paid in a likely soon-to-be defunct currency. Just be glad that a vote for Scottish Independence probably also equals a "backdoor way" to get out of the E.U. and start celebrating - you lucky thing....

Can I come and join you?:D

rpc

Andy_L wrote: »

Isn't the current SNP position that they would continue to use sterling or peg the "Scottish pooond" to sterling?

That's SNP policy, but not necessarily the position of the EU over which the SNP don't have control. It is the SNP policy that they get a say in the BoE as part of the "Sterling Zone" too even though that isn't theirs to dictate.

moneyistooshorttomention wrote: »

If they were daft enough to ask to join the E.U. in their own right

That is SNP policy. Except they believe that they wouldn't have to ask to join as Scotland is already a member. Others believe differently.

I can't imagine they would be that daft as to accept having the Euro as a currency

The SNP won't get a choice - that term could be imposed by the EU (along with Schengen) or we could keep the existing opt-out. Current noises suggest that the opt-outs could well be lost, but we won't know for sure before we vote and it isn't up to the SNP.

The SNP liked the Euro, but have changed their mind.

grey_gym_sock

whatever the SNP say, it's pretty clear that scotland would have to apply to join the EU. i expect they would apply and be accepted without much problem. however, because any 1 country could veto their membership, there's a good chance of getting shafted on negotiable issues (e.g. fishing rights).

but they wouldn't be forced into the euro. they wouldn't (unless they negotiated it) have an opt-out, but that just means that in theory they're committed to joining the euro when they're ready. the EU doesn't try to force countries to join the euro immediately when they don't want to. i believe sweden was judged to be ready to join, and haven't simply because they've chosen not to.

i'm not sure about schengen.

mulronie

There are a lot of unanswered questions about how the long-term liabilities made in the name of the United Kingdom would be carved up during the dissolution of union.

Some would be an absolute nightmare where the liabilities were created without any distinction across the borders of England & Wales/NI/Scotland - UK government gilts, War Bonds, Premium Bonds, pensions for Armed Forces/civil service/Royal Mail, etc.

At least LGPS is already split, with a seperate LGPS existing under statute specifically for Scotland. My assumption would be that in the event of seperation, Scottish parliament would pass law confirming the official currency of the Scottish state, and mandating that all contracts with Scottish-registered institutions would be deemed honoured in full if paid in that currency. Just like when the Euro came in across the Eurozone, if Scotland moved to the Euro they would set a peg and that would be that.

Goldiegirl

The break up of the UK affects all of us in the country.

If there is any referendum, I think everybody in the UK should vote on it, not just one part

grey_gym_sock

Goldiegirl wrote: »

If there is any referendum, I think everybody in the UK should vote on it, not just one part

how would that work? do you mean that a majority in the UK would decide the question? implying that scotland could be forced to stay in the UK even if a majority in scotland wanted to leave? that would be completely untenable, because it's inconsistent with the basic international principle that nations have the right of self-determination.

why doesn't everybody in the world get to vote in the US presidential election? after all, we are all affected by the outcome.

bilbo51

grey_gym_sock wrote: »

...the basic international principle that nations have the right of self-determination

I'm quite ambivalent about this referendum business, but may I point out that the nation that has the right of self-determination here is the UK... :grouphug: