As noises in Scotland gets louder concerning a second referendum, several of you have asked FPS to advise on the status of Armed Forces pensioners in Scotland and what the future is likely to hold.
Your questions all follow the same pattern:
Q: ‘Can I assume that independence would make no difference to my Armed Forces Pension?
A: No you cannot. The SNPs position at the last referendum on Independence was that in the event of a yes vote, Scotland would take on responsibility for paying public sector pensions for those in Scotland. So you would not necessarily be in the same position as someone living in say, France – because the French government does not want the liability for paying your Armed Forces pension.
However, how any transfer of liability would work and who it would affect is anyone’s guess; since this would have to be subject to a negotiation between Westminster and Edinburgh. This would not be an easy process, as the interests of all stakeholders (UK govt, Scottish govt and individuals) would differ, but literature on the subject to date has not been specific about either the detail of who would be affected or what represents a “fair share” of liabilities for UK-wide schemes.
We will continue to keep you informed, but at this stage we can do no more than put you on notice that if another vote were to become a reality this is not an issue you could afford to ignore – whatever your views.
