What the justification is for the proposed distribution of the surplus of #250 million from the Scottish Transport Group Pension Schemes an…

Upon wind-up the two Scottish Transport Group pension fund schemes are liable to taxation which is payable to the Inland Revenue. As I announced in Parliament on 29 November agreement has been reached between the Scottish Executive and UK Government that up to £118 million of any sums remaining should now be paid out to members of the Scottish Transport Group Pension Schemes by means of ex-gratia payments. These are sums, payable as a lump sum rather than as an addition to pensions, which members of the schemes would not have otherwise been due under the rules which govern the pension schemes. Scottish ministers will distribute the ex-gratia payments as soon as possible after the pension schemes' trustees have discharged their obligation to wind-up the pension schemes. There is no intention that any part of sums paid to the Inland Revenue or HM Treasury, or retained by Scottish ministers to be used in making ex-gratia payments, will be used for a contingency fund against potential legal action.