Issue - meetings

Report number CEX353 by the Chief Executive.                        (Enclosure)

DECISION:

 That Council approve the following changes to the Council’s pension and compensation policies to take effect subject to the relevant statutory instruments being approved and subject to the statutory notice period of thirty days having expired:

1)   That compensation payments for redundancy are calculated using the statutory scheme with a multiplier of 2.2 to actual salary, thereby limiting the maximum eligibility to 66 weeks. Consideration of any enhancement beyond the current 66 weeks up to the maximum discretionary allowable of 104 weeks would be considered on the grounds of compassion which is defined as “Situations of severe personal distress resulting from non-financial circumstances affecting the individual or close relative leading to unavoidable financial hardship”.

2)   That the compensation payments for redundancy continue at the statutory level, as at present, for those employees aged 50 and above whose redundancy effects a release of their pension.

3)   That the Chief Executive is given delegated authority to determine whether the provisions relating to compassion should be applied.

4)   That any retirements under the rule of 85 and regulation 31 that require the employer’s consent are only acceded to where that particular application can be shown to the satisfaction of the Chief Executive to be in the interest of the efficiency of the service.

5)   That any applications under section 26 of the regulations for early retirements on the grounds of efficiency are decided by the Chief Executive, with advice from the Monitoring Officer, Section 151 officer, and HR Manager on a case by case basis to ascertain whether they are in the interest of the efficiency of the service, with any appeal coming to a member panel.

6)   In paragraphs 4) and 5) above, efficiency shall include (but not be limited to) both financial savings and/or quantifiable quality improvements judged on a case by case basis.

Council had before them report CEX353 of the Chief Executive which advised that on the 1^st October 2006 new regulations had come into force aimed at tackling age discrimination in employment.  One of the main effects of these regulations was to require a change in the way the Council calculated compensation payments to employees when posts were declared redundant.

Councillor Craft referred to the differences between the private sector and local government, in the private sector redundancy was usually brought on by a shortage of cash and companies used the statutory capping rate per week.  In his view this should be used in local government.  He also observed that there was no reference to the main stakeholder in the initial equality impact assessments, namely the tax payers. 

After discussion, the motion was duly moved, seconded and carried.

(At 5.03pm the Chairman of the Council (Councillor Gerald Taylor) vacated the chair during this item as he had a prior engagement in Lincoln. The Vice Chairman (Councillor M Taylor) took the chair for the remainder of the meeting).