Pension bosses hit out over funds merger plans

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.