Scottish Office Pensions Agency: Annual Report and Accounts

1. Introduction

1.1 The Scottish Office Pensions Agency established on 1 April 1993, is an Executive Agency of The Scottish Office. Until October 1995 it was part of the Scottish Office Home and Health Department. Following the Senior Management Review of The Scottish Office it became part of the Scottish Office Education and Industry Department. It administers and regulates the National Health Service and teachers' pension schemes in Scotland, and other occupational pension schemes for which the Secretary of State is responsible. The overall framework within which it operates is set out in its Framework Document.

1.2 This is the Agency's sixth annual report, covering the financial year 1998-99.

2. Aims, Objectives and Functions

2.1 The aims of SOPA, as set out in its Framework Document, are as follows:

• to administer, on behalf of the Secretary of State, the public service pension, premature retirement compensation and injury benefit schemes for which the Secretary of State has administrative responsibility so as to provide an efficient and effective service for the benefit of those who use the schemes, at an economic cost to the public purse;
• to prepare in accordance with Government policy the regulations governing these and other schemes for which the Secretary of State has regulatory responsibility;
• to determine questions under the regulations on which there is a right of appeal to the Secretary of State; and
• to advise the Secretary of State on occupational pensions policy generally.

2.2 SOPA's key objectives are:

2. provide a timely, accurate and helpful service to members of the schemes administered by SOPA, and their employers, in line with the principles of Service First;
3. to collect and pay, promptly and accurately, sums due under these schemes, and to arrange for their proper accounting and budgeting;
4. to publicise timely and accurately information about changes to scheme policies and regulations to local authorities and other bodies administering schemes regulated by SOPA;
5. to reduce over time the ratio of running costs to case-load; and
6. to provide appropriate policy advice to Ministers and Departments of The Scottish Office on their pensions responsibilities generally and in order to regulate and develop the schemes for which they are responsible in accordance with Government policies.

2.3 The Framework Document is to be revised during the next few months to allow for the new structures brought in with the Scottish Parliament.

2.4 The schemes administered and regulated by SOPA are the pensions, premature retirement compensation and injury benefit schemes covering employees of the National Health Service in Scotland (some 212,000 members and beneficiaries) and the pension scheme covering teachers in Scotland (some 147,000 members and beneficiaries), the scheme covering staff of the Scottish Legal Aid Board (covering some 500 members and beneficiaries), the pension scheme covering staff of the Scottish Agriculture College and Research Institutes (covering some 5,000 members and beneficiaries) and the now discontinued "Crombie" compensation scheme covering former employees of colleges of education (covering some 600 beneficiaries).

2.5 SOPA also exercises regulatory and appellate functions in respect of schemes administered by local authorities - the local government pension and compensation for premature retirement schemes, the teachers' compensation for premature retirement scheme, and the pension schemes covering the police and fire services.

3. Staff and Management Structure

3.1 The Chief Executive (Ralph Garden) is supported by three branches covering management of the schemes, headed by a Director of Operations (Alistair Small), policy and regulation, headed by a Director of Policy (Gavin Mowat), and support services, headed by a Director of Resources and Customer Services (Murray McDermott).

3.2 During 1998-99 SOPA employed an average of 176 staff, including posts transferred with work from other parts of The Scottish Office and temporary posts for one-off projects. The organisational structure and average staffing levels are shown at Annex C.