The Scottish Government needs to do more to clarify its position on the details of how pensions will be provided in an independent Scotland, the Institute of Chartered Accountants of Scotland (ICAS) has said.

In ICAS's report, the body said that a number of key questions, which it raised in Aril 2013, still remain unanswered, despite the Scottish Government publishing two papers on the issue.

David Wood, ICAS executive director, technical policy and practice support, said: "These Scottish Government papers have provided useful additional detail in relation to pension regulation and provision in an independent Scotland but some of our key questions remain unanswered.

"While we recognise that it will not be possible to answer every question prior to the referendum, nevertheless important questions remain on how legacy issues will be resolved and new arrangements will be implemented."

ICAS said that it is still unclear how the Scottish and UK Governments will engage with the European Union on how to minimise the impact of cross-border funding on defined benefit (DB) schemes carrying deficits.

The body stated that a three-year transitional period being discussed by the Scottish Government for addressing pension deficits held by new cross-border schemes is likely to be "wholly insufficient".

ICAS said that it had further questions about the feasibility of an independent Scotland sharing pension protection arrangements with the UK while establishing a separate pension regulator.

It added that it anticipated "additional complexity" in relation to whether an individual's entitlement to state pension at the date of independence would sit with an independent Scotland or with the UK.

Wood said: "Security in retirement is a significant issue for the Scottish public. Everyone has concerns over whether or not they have the appropriate arrangements to provide for their retirement.

"ICAS has taken a neutral stance in the independence debate but we will continue to call for answers to important questions to ensure that the Scottish people are better informed."

First published 05.02.2014

monique_simpson@wilmington.co.uk