Agenda and minutes

Apologies for absence were received from Councillor Clarke.

There were none.

K Farrier, Trade Union Side Secretary spoke on behalf of the Trade Unions (GMB, Unison UCAAT and Unite). He drew the Committee’s attention to a letter (previously circulated) dated 4^th October 2007. The letter was in response to Cabinet rejecting the Trade Union’s proposed new Severance Policy. He commented that the recommendation made by Cabinet would have a detrimental effect on recruitment, retention, employee morale and industrial relations.

He added that it had not been outlined in the reports whether the Trade Union Side proposal was in line with other Councils as the survey had been based on a small sample. No clear trend had been substantiated to confirm that this Council was overly generous in its redundancy payments or added years.

In light of the concerns raised by the Trade Union Side he recommended that this Committee consider the Trade Union Side proposal.

H Crabtree, Corporate Manager for Human Resources was invited to present the report.  He commented that the Council had adopted a scheme in 2004. In March 2007 Council determined to continue with the 2004 scheme but to make appropriate revisions to the scheme to conform with updated Pension Regulations. Council had requested a review of the Scheme in 6 months. 

In September 2007 a report went to Cabinet, outlining three options, including reducing the overall costs, shifting the balance of costs or maintaining the existing scheme. Cabinet had recommended taking forward the option of reducing the overall costs.

A further report on 1^st October 2007 had been presented to Cabinet to introduce a low cost scheme. These recommendations were with the General Purposes Committee for consideration.

The Committee noted that anyone aged 50 years and over would be entitled to early release of pension. The Council would need to pick up the cost for early retirement. The cost to the Council is this situation was indifferent as it applied automatically.

The Committee noted that the granting of added years was discretionary.  Currently it cost this Council £66k per month as a result of previous years added years decisions. The cost of this was payable throughout the individual’s lifetime, after which 50% was paid to their spouse. The Pension Fund in Northamptonshire made a decision as of 1 April 2007, to be paid the actuarially estimated lifetime costs of augmented added years over a maximum of three years, increasing financial pressures to employer authorities in the short-medium term.

It was noted that if a Council granted added years it could not give enhanced redundancy payments. The Council could grant up to102 weeks of enhanced redundancies.

He reported that the number of Council’s choosing to grant added years was reducing. In Northamptonshire, only two authorities granted added years. Local Government Employers, Local Government East Midlands and Council’s External Auditors had concluded that the current Council’s scheme was out of line. 

He confirmed the other two options outlined in the report, including the Trade Union Side proposal were within the regulations and legal.

It was difficult to  ...  view the full minutes text for item 4.

THE CHAIR TO MOVE:

“THAT THE PUBLIC BE EXCLUDED FROM THE REMAINDER OF THE MEETING ON THE GROUNDS THAT THERE IS LIKELY TO BE DISCLOSURE TO THEM OF SUCH CATEGORIES OF EXEMPT INFORMATION AS DEFINED BY SECTION 100(1) OF THE LOCAL GOVERNMENT ACT 1972 AS LISTED AGAINST SUCH ITEMS OF BUSINESS BY REFERENCE TO THE APPROPRIATE PARAGRAPH OF SCHEDULE 12A TO SUCH ACT.”

There were none.