Please note that this has been updated to reflect the values for the 2022/23 financial year.

In the 2022/23 Scottish Government consolidated accounts, it was noted that the cash equivalent transfer value (CETV) of the former First Minister’s pension had decreased since the previous year due to a change in the calculation methodology. This is because the pensions for Ms Sturgeon’s two office holder posts had been calculated separately, rather than aggregating them. Updated advice has confirmed that aggregating the pensions is the correct process. We can now confirm that the CETV is £558,000 at the relevant accounting date, not £434,000 as is noted in the accounts.

The scheme rules introduced in 2009 contain transitional arrangements that apply to members holding office at that time. Working with the Scottish Parliament, we have carried out a full review of how the CETV should properly be calculated in this particular situation, and the correct transitional arrangements contained in the scheme rules have now been applied to Ms Sturgeon’s pension. The correct value will therefore be included in the next set of consolidated accounts for 2023/24. 

This was the first occasion that the pension entitlement of a retiring First Minister had been tested under the specific scheme rules. The review has clarified the pension calculation process for office holder roles, and the confirmed methodology will be applied for any other scheme members in the same situation.