Question reference: S6W-22220
- Date lodged: 13 October 2023
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Current status: Answered by Tom Arthur on 8 November 2023
Question
To ask the Scottish Government how much (a) it and (b) local authorities will save from a reduction in employer contributions to the Strathclyde Pension Fund.
Answer
The Scottish Government will not directly save money as a result of the reduction to employer contribution rates to the Strathclyde Pension Fund. Instead, it is the individual employers, including local authorities, who will save.
The amount each scheme employer will save will depend on their pensionable pay-bill and the employer pension contribution rate they are required to pay. These rates have not yet been set for employers outside of the Main Employer Group (MEG) (the 12 local authorities participating in the Fund and arm’s length external organisations).
In very broad terms, the Strathclyde Pension Fund has estimated the overall financial impact on employer contributions in the MEG, to be a £366m saving in years 1 and 2, and £51m p.a. thereafter.