The Scottish people yesterday voted to remain part of the UK. A vote for independence would have been expected to lead to greater costs and complexity for pension schemes in Scotland and the rest of the UK.
Commenting on the outcome of the referendum, Mike Kennedy, Partner at Barnett Waddingham said:
“The prospect of schemes operating across the Scottish border being forced to meet stricter funding requirements has now fallen away. However, pension schemes and their sponsoring employers should not rest easy. The Scottish Parliament was promised additional powers from Westminster in the run-up to the vote and it is likely that they will seek to use them. If differences arise in legislation and taxation between Scotland and the rest of the UK, this will lead to complications for administering schemes with members in both regions, and therefore increased costs.”
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