Cabinet Secretary for Justice KennyMacAskillMSP

T:08457741741

E:scotlish.ministers@scotland.gsi.gov.uk

The Scottish Government

Kezia Dugdale MSP Shadow Minister For Youth Employment The Scottish Parliament EDINBURGH EH991SP

Our ref: \':\;'

2012/0030922

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October 2012

Thank you for your letter of 17 September 2012 regarding concerns raised by your constituent about proposed changes to the police pension scheme. The UK Government introduced its Public Services Pension Bill on 13 September 2012 outlining how it intends to take forward its public sector reform agenda. The Bill places new and significant constraints on the Scottish Government's ability to take forward and conclude fair and relevant pension reforms. Scottish public sector workers deserve certainty about their future pension terms. The UK Government's constraints affect both scheme design and the financial arrangements underpinning the reforms. They continue to undermine the ability of the Scottish Government to put in place fully negotiated pensions agreements that meet the needs of public sector employees in Scotland, protect public services and are fair to the taxpayer. The Cabinet Secretary for Finance, Employment and Sustainable Growth, John Swinney has written to the Chief Secretary of the Treasury expressing our deep concern about the UK Government's interference in reform discussions in Scotland, and the limitations imposed by Westminster on these partnership negotiations. While Scottish Ministers have devolved regulatory control of the police pension schemes in Scotland occupational pensions policy remains reserved. The UK Government's Bill will provide for revised powers for Scottish Ministers to make and maintain schemes in Scotland and it is intended that these will supersede those powers that currently provide for creating schemes for the payment of pensions and other benefits. This includes the Police Pensions Act 1976 to which your constituent refers. The question regarding the protections currently provided by section 2 of the 1976 Act has been raised by officials but the UK Government believes that it has shown a clear intention to make the necessary legislative changes and that the Bill will establish a common framework across public service pension schemes, enabling these reforms to be implemented. St Andrew'sHouse.RegentRoad.Edinburgh EH1 3DG www.scotland.gov.uk