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EU Throws Executive Pension Curb 
into Chaos 


By Peter MacMahon, Scotsman.com

United Kingdom

January 23, 2006

Tom McCabe: Urged to rethink plan. Picture...
Tom McCabe: Urged to rethink plan.

 

Key points:

. New pleas for ministers to reconsider pension plans

. Claims had been made that ruling was in line with EU directive 

. But EU say that this is not the case

Key quote:

"It's an artificial debate and is only going on in Britain. The directive has no influence on pension value or pension age. It is completely up to the member state." - Katharina von Schnurbein, EU commission's spokeswoman 

Story in full:

MINISTERS were last night urged to reconsider plans to stop council workers claiming their full pension at 60, after the European Union said the current system did not break anti-discrimination laws. 

Opposition parties and local government leaders called on Tom McCabe, the finance minister, to reconsider his plans to end the "rule of 85" which allows members of local government pension schemes to retire at 60 if their age combined with their length of service comes to a total of at least 85 years. 

The minister last week claimed he had no choice but to follow the UK government in making the change to avoid breaking EU directives on age discrimination. 

However, Katharina von Schnurbein, the commission's spokeswoman on employment, social affairs and equal opportunities, has revealed that the EU believes that the Executive was wrong. She said that Article 6 of the relevant directive gave governments the scope to treat people differently on the grounds of age in certain circumstances. 

Ms Von Schnurbein said: "It's an artificial debate and is only going on in Britain. 

The directive has no influence on pension value or pension age. It is completely up to the member state. If they think it is reasonable for people to retire at 60, under EU law that is perfectly legal." 

Pat Watters, the president of COSLA, the local authorities umbrella group, said councils were prepared to release their legal advice - which said that the current arrangements were legal - and the Executive should now do the same. 

Mr Watters said: "Given this statement from Europe we think that our legal advice was right. The Executive should release its advice and reconsider its decision on these pensions." 

Derek Brownlee, a Tory MSP, echoed the call for Mr McCabe to publish the legal advice. He said: "We have to have a proper grown-up debate about this that does not involve the Executive hiding behind disputed legal advice." 

An Executive spokeswoman said: "We received legal advice which concluded that the rule was inconsistent with the directive on the grounds of age discrimination. Based on legal advice, we will pursue this option."


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