Pensions in Scotland After independence

Pollycat

bostonerimus said:

Maybe people could try to answer the question rather than commenting on Scottish Independence itself.

Nobody can answer the question because nobody knows the answer.

Flugelhorn

It was debated endlessly at the time of the referendum and there was no conclusion then, doubt any more thought or solutions have been found since.

penners324

Someone suggested the UK government would continue to pay state pensions. I don't think this would be politically acceptable either side of the border.

The UK would continue to pay in GBP with no indexation, whilst Scotland could have a very different inflation level and will have a different currency. Huge issues for Scottish pensioners...

ewaste

bostonerimus said:

Maybe people could try to answer the question rather than commenting on Scottish Independence itself.

You've been on this forum long enough to know the user base.

Existing and future State Pensions based on accrual upto "Independence Day" should continue to be paid by the UK Government. This is the system that was contributed to hence why UK pensioners abroad continue to get their state pension. We don't expect any other foreign Governments to take over state pension provision. There would likely be a Social Security Agreement similar to many such agreements already in place for cost of living increases etc. After "Independence Day" accrual would need to begin under whatever Scottish system is created. Although there is currently no reason why voluntary Class 2 NI contributions couldn't continue to be made into the UK system.

As an expat who has continued to pay NI and is due to receive a UK State Pension you probably see this as the rational default. Although seemingly everyone believes that somehow Scotland warrants a special case because... 

Private Pensions well it doesn't really matter what Scotland does. The underlying assets have long since become part of a global system. It becomes an issue of taxation which is unlikely to change drastically for multiple reasons. 

molerat

Pollycat said:

bostonerimus said:

Maybe people could try to answer the question rather than commenting on Scottish Independence itself.

Nobody can answer the question because nobody knows the answer.

Not least Sturgeon et al.

cod3

bostonerimus said:

Maybe people could try to answer the question rather than commenting on Scottish Independence itself.

^^^ This ^^^

Pollycat

cod3 said:

bostonerimus said:

Maybe people could try to answer the question rather than commenting on Scottish Independence itself.

^^^ This ^^^

If you know the answer can you please post it.
Thanks.

jem16

ewaste said:

bostonerimus said:

Maybe people could try to answer the question rather than commenting on Scottish Independence itself.

Existing and future State Pensions based on accrual upto "Independence Day" should continue to be paid by the UK Government. This is the system that was contributed to hence why UK pensioners abroad continue to get their state pension. We don't expect any other foreign Governments to take over state pension provision. There would likely be a Social Security Agreement similar to many such agreements already in place for cost of living increases etc. After "Independence Day" accrual would need to begin under whatever Scottish system is created. Although there is currently no reason why voluntary Class 2 NI contributions couldn't continue to be made into the UK system.

If Scotland were to become independent then the UK would no longer exist so the status quo would not be expected to continue. You cannot take away all the NICs of workers in Scotland and still expect state pensions in Scotland to be funded by those in England, Wales and Northern Ireland. As we know the NI Fund is run on a PAYG basis where current workers pay current pensions. 

Blackford of course tried to suggest that Scottish pensioners would receive their entitlement up to Independence and it would be paid by the UK Government. Sturgeon eventually had to admit that even their white paper from 2014 said that Scottish pensions would become the responsibility of the Scottish Government. 

If Independence does happen then I have no doubt that there will be some negotiations to sort out the current working balance of the NI Fund so that it is shared out but Scottish pensioners should not expect to be paid by what will no longer be the UK. 

jem16

bostonerimus said:

The UK pays state pension to people resident in foreign countries already so it would be strange if they did not pay SP to residents of an independent Scotland if they had UK NI contributions. 

If Independence happens then the UK ceases to exist so it would be strange to expect England, Wales and NI to continue to pay Scottish pensions whist simultaneously losing the revenue from Scottish NICs which actually funds it on a PAYG basis. 

I fully expect it to be the responsibility of the Scottish Government with an appropriate split of the NI Fund’s working balance. 

Albermarle

Seems unlikely it is something to worry about in the short term. Current betting is that there will not be a referendum in the next three years ( 1/5 on )  and even if there is one down the line, it is about even money the result will be No.

Personally I would not be worried if my DC pot was with a provider with a HQ in Scotland, but state and public sector pensions for Scottish residents could be a nightmare to untangle.