Issue - meetings

At the Council meeting on 25 March 2015 members received a report from the Director of Finance, Resources & Customer Services (No.207) detailing a number of new governance requirements introduced under the Public Service Pension Act 2013 relating to public service (including Local Government) pension schemes.  These changes included the establishment of a Local Pension Board with a role to assist in securing compliance with the new regulations and other legislation and ensure efficient and effective administration of the Pension Fund.  In order to distinguish between the role of the newly created Local Pension Board and that of the existing Pension Board (whose role is to make decisions on behalf of the Council as Administering Authority for the LBE Pension Fund) it was agreed that the Pension Board should be renamed as the Pension Policy and Investment Committee, with that body combining the role of the previous Pension Board and Investment Sub Committee.

Under the Members Allowance Scheme, as set out in Part 6 of the Council’s Constitution, the Chair of the previous titled Pension Board receives a Special Responsibility Allowance (SRA) of £2,000 per year.  Given the change in governance arrangements introduced as a result of the Act and role of the newly established Local Pension Board, it is recommended that this allowance now be divided between the Chairs of both the Pension Policy & Investment Committee and the Local Pension Board on the basis of £1000 per position.

The payment of the additional SRA proposed is permissible within the guidance accompanying the regulations relating to the Members Allowance Scheme and will be funded from within existing resources.  Payment of the allowance for the Local Pension Board will only be eligible to a councillor.

Recommendation:

In order to reflect the change in governance arrangements relating to administration of the Pension Fund, Council is asked to amend Schedule 1 of the Members Allowance Scheme, as follows:

(1)       replace reference to Chair of Pensions Board with Chair of Pension Policy & Investment Committee and amend the level of SRA for that post to £1000.

(2)       Add the Chair of the Local Pension Board as a post to receive an SRA – with an allocation of £1000.

RECEIVED an update from the Director of Finance, Resources & Customer Services, listed on the agenda as Item 15 relating to the Members Allowance Scheme for 2015/16.

NOTED

1.         Council (25 March 2015) had approved, following changes introduced under the Public Service Pension Act 2013 the establishment of a Local Pension Board and to rename the Council’s existing Pension Board as the Pension Policy and Investment Committee.

2.         Under the Members Allowances Scheme (Part 6 of the Constitution - Paragraph 6.3 (c)) the chair of the previous titled Pension Board received a Special Responsibility Allowance (SRA) of £2,000 per year but given the change in governance arrangements and role of the newly established Board, Council was now being asked to consider dividing the allowance between the chairs of the Pension Policy and Investment Committee and Local Pension Board.

AGREED to approve the following amendments to Schedule 1 of the Members Allowance Scheme in order to reflect the change in governance arrangements relating to administration of the Pension Fund:

(1)     To replace reference to Chair of Pensions Board with Chair of Pension Policy & Investment Committee and amend the level of Special Responsibility Allowance for that post to £1,000.

(2)     To add the Chair of the Local Pension Board as a post to receive a Special Responsibility Allowance (if filled by a councillor) – with an allocation of £1,000

The Members’ Allowances Scheme forms Part 6 of the Constitution.  Paragraph 6.3 (c) states that “Annual Increases in allowances will be linked to average earnings, for the period ending the previous March of each year.  New rates will be effective from the new Municipal year.”

When considering the Scheme for the 2014/2015 financial year, Council resolved:  “That the current Members Allowances Scheme is re-approved and that the automatic increase in allowances by the average earnings as at March not be implemented for the 2014/15 financial year.  At the same time it be acknowledged that following the elections in May 2014, the Administration may wish to review allowances within the overall budgetary figure and in accordance with the recommendations of the Independent Remuneration Panel.”

There is a need to consider the level of allowances payable under the scheme for 2015/16, with Council asked to consider the following recommendation.

Recommendation

Council is invited to re-approve the current Members’ Allowances Scheme for the 2015/2016 financial year, as set out in Part 6 of the Constitution, and to confirm that the automatic increase in allowances by the average earnings as at March be not implemented again.

Members were asked to consider an update from the Director of Finance, Resources & Customer Services, listed on the agenda as Item 11 relating to the Members Allowance Scheme for 2015/16.

NOTED

1.         The Members Allowances Scheme (Part 6 of the Constitution - Paragraph 6.3 (c)) stated that “Annual Increases in allowances will be linked to average earnings, for the period ending the previous March of each year.  New rates will be effective from the new municipal year.”

2.         When considering the scheme for the 2014/15 financial year, Council had resolved “That the current Members Allowance Scheme is re-approved and that the automatic increase in allowances by the average earnings as at March not be implemented for the 2014/15 financial year.  At the same time it be acknowledged that following the elections in May 2014, the administration may wish to review allowances within the overall budgetary figure and in accordance with the recommendations of the Independent Remuneration Panel”.

3.         The need, following on from 2.above, to now consider the level of allowances payable under the scheme for 2015/16.

AGREED to re-approve the current Member’s Allowances Scheme for the 2015/16 financial year, as set out in Part 6 of the Constitution, and to confirm that the automatic increase in allowances by the average earnings as at March be not implemented again.