EC issues directive for pensions under independence

The European Commission has ruled that all private pension schemes in an independent Scotland would have to be fully funded.

A directive published on Thursday confirmed there would be no law change, as had been widely speculated.

The law does not apply to schemes based elsewhere in the UK but operating in Scotland, since the countries are one EU state.

If Scotland were to leave the UK, schemes operating across Scotland and the continuing UK would need to be fully funded.

A number of independent experts have said a yes vote could mean pension schemes in Scotland would have to close.

Shadow pensions minister Gregg McClymont said: “It’s now clear beyond doubt that independence puts the pensions of hard-working Scots at risk.”

A spokesman for the First Minister said: “It’s not the first EC directive on pensions, far from it.

“These things get updated all the time and doubtless will be updated again in the future.

“The point still stands there were very strong indications from Brussels that this issue is being looked at seriously and they are intent on resolving it, specifically the cross-border issue.”