07 July 2006
Council workers in Scotland will have their early retirement pension rights protected for the next 14 years under a proposed transitional scheme which allows the Executive to comply with a European Union ruling.
The proposal was described by Finance Minister Tom McCabe as 'a specific Scottish solution'.
The so-called Rule of 85 – enabling local government employees to retire from 60 onwards if their age and years of service add up to at least 85 – is due to be removed from the Local Government Pension Scheme by October this year to comply with European law.
However, the Scottish Executive has proposed protection that will allow workers who would have qualified for the scheme to benefit from it until 2020. In England and Wales, council workers are likely to be protected until 2016.
The Scottish proposal is expected to cost £400m. It comes three months after industrial action by the local government unions.
Announcing the consultation, McCabe said that following discussions with unions and the Convention of Scottish Local Authorities, the Executive had sought legal and affordable protection for current members.
The Scottish local government spokesman for Unison, Joe Di Paula, said: 'It is interesting to see that the Scottish Executive… is proposing increasing the number of existing members of the local government pension scheme who will have the conditions they signed up for protected.'
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