By Adam Morris
Scotland’s public sector pensions body has endured a “five-fold” increase in workload triggered by a complex dispute with retired officers.
The Scottish Public Pensions Agency (SPPA) – which now faces a potential probe by the UK pensions watchdog – is facing “serious challenges” as it attempts to reach settlements with around 500 disgruntled former cops.
In correspondence seen by 1919, public finance minister Ivan McKee admits the scale of the challenge facing the SPPA.
As reported last month, a group of retired officers – some of whom claim to be owed six-figure sums – have come together under the ‘Jobs Forgotten’ banner to ramp up their case.
Their argument dates back to a pensions scheme switch a decade ago which was subsequently ruled unlawful, and has thrown into question the final settlement payment they are due.
“This major project has increased SPPA’s workload five-fold and continues to present considerable challenges, exacerbated by the late provision of external guidance critical to the delivery process,” McKee wrote to fellow SNP MSP Fiona Hyslop, who has taken up the case on behalf of a constituent.
“However, the SPPA has invested time and personnel to address this and, while there are issues still to overcome, the agency has introduced innovative ways of working – for example automation – which is now beginning to deliver at pace.”
A number of officers had their pensions amended in 2015 from the ‘1987 Scheme’ to the ‘CARE Scheme’, a move which also affected firefighters and judges.
“The SPPA knew as far back as 2022 this was coming, so that begs the question why they didn’t get more staff to get things moving then”
Martin Gallagher, retired superintendent
The latter challenged the switch in a case dubbed the McCloud Remedy, and a judge agreed it was unlawful.
That has brought into question thousands of settlements across the UK, including at least 500 north of the border.
Martin Gallagher, a prominent campaigner and former superintendent, said: “The whole thing is a shambles.
“The SPPA knew as far back as 2022 this was coming, so that begs the question why they didn’t bring in more staff to get things moving then.
“It’s terrible planning, and it’s left people who gave their life to public service in limbo.”
Officers fighting the case in England are further ahead in their campaign and, while that has resulted in satisfactory settlements for some, for others it is a harbinger for possible bad news.
It is understood another glitch in the system has resulted in some retired officers in England being ordered to hand back pension money they were accidentally overpaid, rather than receiving an uplift.
“That’s happened in England and retired officers here are very worried it could happen to them too,” Gallagher added.
“Some have had a statement, and that statement has since been rescinded, and they don’t know where they stand now. The impact of that on these people is immense.
“It’s a situation where someone who thinks they’re owed more money could be told, in fact, they need to pay some back.”
Both the UK Pensions Ombudsman and the Pensions Regulator have been contacted by officers dissatisfied with the way the SPPA is handling the case.
A spokesperson for the Pensions Ombudsman said: “I can confirm that we have received a small number of complaints.
“These have only just been received and are at a very early stage in our process. No decision has been made yet as to how to proceed.”
A spokesperson for the Pensions Regulator, which has more teeth than the ombudsman and can take enforcement action, said: “We do not comment on whether we have, or have not, received complaints about a pension scheme or administrator.
“Neither do we confirm or deny whether we are taking enforcement action against individuals, pensions schemes or businesses.”
The SPPA described the pressure on the service as “substantial”.
A spokesperson added: “We must deliver over 60,000 immediate choice statements to retired public servants on top of the 12,000 annual retirements we routinely administer.
“This work is critical to ensuring that each person receives an accurate statement to make a fully-informed choice.
“It is complex and time-consuming work that has had to be balanced with other key business-as-usual activity – for example, the provision of annual benefit statements.”