Who Knows Posted May 9, 2014 Report Share Posted May 9, 2014 Liberal Democratic Minister for Pensions, Steve Webb MP, has confirmed that no matter the out come of the referendum vote on 18 September that anyone who has paid National Insurance and built up an entitlement to a UK state pension will receive this from the United Kingdom government. http://archive.today/2J7dt If the vote is Yes and Scotland becomes an independent country (will also apply in the future if Shetland voted to become an independent country at some future date) then everyone who has retired before the split in March 2016 will still receive in full the State Pension from the United Kingdom country. Those who retire after that date will get a pension from the United Kingdom Government based upon their contributions at this date. How much will that be will depend upon what the prevailing rate for state pension is at the time they retire plus number of years contributions. The link below to Government web page gives indicative values https://www.gov.uk/calculate-state-pension Currently the cost of pensions in Scotland is estimated to be around Â£6.3 billion a year which the UK Government pays out of current UK tax receipts will continue to pay. There is no magical pension pot. http://www.esrc.ac.uk/_images/Government%20spending%20on%20benefits%20and%20state%20pensions%20in%20Scotland_tcm8-27291.pdf The UK currently pays the state pension to people living all over the world as Government link below explains. Entitlement to payment is based upon contribution made not country you live in at retirement or your nationality. http://www.nidirect.gov.uk/state-pension-for-people-living-overseas In the last year of details available tax collected in the UK attributable to Scotland was Â£56.9 billion whilst spend by Holyrood Parliament was only Â£33.7 billion. This therefore leaves Â£23.2 billion to spend on items such as social security spend (which includes pensions) and other costs currently managed by Westminster. http://www.scotland.gov.uk/Resource/0041/00418420.pdf http://www.scottish.parliament.uk/S4_PublicAuditCommittee/Final_Outturn_Report_for_the_Scottish_Administration_for_the_year_ended_31_March_2013.pdf These initial pension costs will not be borne as a cost against the new Scottish state but pension expenditure will grow over time. The initial "windfall" of not paying the historic pension liabilities can be used to top up the UK state pension (one of the lowest in Europe), create a pension fund by putting NI contributions being received in to a real pension fund like companies have to for private pensions to fund the future payments rather than funding out of current taxation receipts as is the current scenario in the United Kingdom or a combination of these two options. That surely answers definitively the Pension payments the United Kingdom Government continued commitment and clears up at least one answered question? Quote Link to comment Share on other sites More sharing options...
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