15th March 2017 Anna Rogers comments in Pensions Expert on the impact of Scottish independence on pension schemes
Scotland’s first minister Nicola Sturgeon will seek a second referendum on Scottish independence, to be held by spring of 2019, triggering concerns about the challenges a Yes vote would pose to UK pensions, particularly over the creation of cross-border schemes.
However, such concerns may be allayed by Brexit. Under EU legislation, schemes that have members in two member states are considered cross border schemes, and must be fully funded at all times.
Anna Rogers commented: “We can still have a scheme without it being caught by cross-border requirements as long as there’s only one EU member state in it.”
She added that the EU seemed to be softening to the idea of schemes running deficits as is seen in the UK pensions model. Article 14.3 of the IORP II Directive allows this.
Read the full article in Pensions Expert here.
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