The real issues surrounding the Scottish independence debate should be explored rather than the "scaremongering" on pensions that is taking place, a consultant has warned.

Some have argued that if Scotland was to seperate from the UK then it may be affected by the European Union Directive, which states that EU cross-border schemes should be fully funded.

However, Buck Consultants said that this scaremongering around deficits having to be filled overnight is unhelpful, and that the real issues should instead be considered.

Kevin LeGrand, Buck Consultants head of pensions policy, said: "Independence is an extremely difficult issue and it is important to consider the facts behind the debate. Unhelpful scaremongering hides the real issues."

He said that real issues are around the increased administrative complexity of providing cross-border schemes, the necessity for establishing new schemes to cope with the problems, and membership transfers between the two member states.

Regarding the EU Directive on pensions, LeGrand said that it is "inconceivable" that some transitional easement would not be applied and added that this would be a key priority as part of any implementation of independence.

He said: "In addition, it does not necessarily follow that Scotland would even be admitted to the EU within the timeframe proposed following a "yes vote" and so may not even be affected by the EU Directive.

"Whilst universities and charities represent sectors with emotional attachment, there is no logical reason why charities or universities would automatically be in a special high-risk category. All employers that would fall under the banner of cross-border schemes would immediately be affected."

First published 06.08.2013

monique_simpson@wilmington.co.uk