John Swinney blocks Westminster plans to take control of Holyrood-run public pension schemes

JOHN Swinney has blocked UK Government plans to take control of some public pension schemes currently run by Holyrood, it emerged today.

The SNP administration claims Coalition Government ministers at Westminster are using pension reform as a cover for cutting public spending, while constraining Holyrood’s ability to negotiate long term reforms.

Mr Swinney told MSPs today that the Scottish Government’s has refused to consent to some public body schemes in Scotland being placed under UK legislative control as part of the Public Service Pensions Bill.

“I have today written to Chief Secretary to the Treasury Danny Alexander to confirm that we will not support the transfer of any public sector pensions to UK control,” he said.

Pension contributions for public sector workers will again rise by 3.2 percent this year as part of the Coalition’s programme to increase contributions by an average of 3.2 per cent of pensionable pay by 2014-15. The SNP Government has been threatened with a £100 million financial penalty if does not apply the increase in Scotland.

Mr Swinney said: “The UK Government’s approach to pension reform has more to do with its failed austerity programme than delivering sustainable long term public sector pensions.

“The Scottish Government has repeatedly made clear our opposition to the timing of the UK Government’s increases in pension contributions and we have sought maximum flexibility in our negotiations with trade unions over long term reform.

“It has taken several months to get clarity from the UK Government over their intentions and I know that has led to uncertainty for public sector workers. Without full responsibility for all aspects of pensions policy in Scotland we are tied to the decisions of the Treasury.

“Our ability to negotiate has been eroded by Treasury decisions to legislate on key issues such as matching normal retirement age with state pension age.”

But Liberal Democrat leader Willie Rennie said Mr Swinney had effectively taken the same decisions on pension changes as the UK Government.

The Finance Secretary had the choice but decided to keep the money in his budget rather than enhance pensions,” Mr Rennie said.

“The whole statement was a big attempt at diversion from the decisions taken by Scottish ministers.

“It’s laughable that John Swinney is complaining that he only has 28 months to negotiate a pension deal given he expects to negotiate Scotland as an entirely separate country in just 16 months from the referendum.