Pen­sion bosses hit out over funds merger plans

Evening Times - - NEWS -

PEN­SION bosses in Glas­gow have hit out at pro­pos­als to merge lo­cal au­thor­ity funds across Scot­land.

As re­vealed in our sis­ter paper The Her­ald on Sun­day, unions are call­ing for Scot­land’s 11 lo­cal coun­cil pen­sion funds to be merged in to a giant sin­gle na­tional body.

If this change was car­ried out, the body would be left with as­sets greater than Scot­land’s an­nual bud­get.

How­ever, Scot­land’s big­gest pen­sion firm, Strath­clyde, suggested a merger just to en­able in­fra­struc­ture projects would be ‘per­verse’, warn­ing a the move could break the link be­tween coun­cils and they funds into which they pay.

The move, which would cre­ate a fund of more than £42 bil­lion for 400,000 work­ers, could trans­form the way pub­lic projects are funded.

Uni­son, lead­ing the charge, be­lieves such a dra­matic move would slash tens of mil­lions of what it called ‘hid­den pri­vate costs’ and un­lock job-cre­at­ing in­vest­ments.

The SNP is un­der­stood to have an open mind on whether to merge funds but is openly ea­ger to en­tice more cash for in­fra­struc­ture projects.

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