Issue - meetings

Report number OD&HR95 by the Corporate Governance & Housing Portfolio Holder.                                                       (Enclosure)

DECISION: That the Council

(1)           adopts the policy statement detailed in appendix 1 of report number HR&OD95;

(2)           adopts the discretions detailed in section 3 of the policy statement and requires that they be formally notified to the pension scheme administrators;

(3)           notes that the policy statement is subject to the outcomes of consultations with the trade unions; and

(4)           notes that the policy statement may be subject to further changes arising from Department of Communities & Local Government (DCLG) and Local Government Employers’ (LGE) guidance.

The portfolio holder for human resourcesand organisational development submitted report number HR&OD95 (as updated) which outlined the changes to the local government pension scheme that would take effect from 1 April 2008.  The scheme however allowed some discretion on the part of the Council and a formal decision on these discretionary elements was required.

Councillor Craft confirmed that this report had been considered by the Resources PDG.

The recommendations contained in the report were moved and seconded, and following a vote, the motion was carried.

Report number OD&HR95 by the Corporate Governance & Housing Portfolio Holder.                                               (Attached)

DECISION:

(1)           To recommend to Council the adoption of  the policy statement detailed in appendix 1 to report HR&OD95 (as amended);

(2)           To recommend to Council the adoption of the discretions detailed in section 3 of the policy statement and the requirement that they be formally notified to the pension scheme administrators;

(3)           To note that the policy statement is subject to the outcomes of the consultation with the unions;

(4)           To note that the policy statement may be subject to further changes arising from guidance issued by the Department for Communities & Local Government and the Local Government Employers.

Considerations/reasons for decision:

(1)            Details of changes to the local government pension scheme resulting from primary legislation passed in April 2007 as outlined in report HR&OD95.  The new legislation changes the basis of the scheme as well as its practical operation;

(2)            Noting the amendments to the original report as circulated with the agenda as outlined at the meeting by the Corporate Governance & Housing portfolio holder (specifically at paras 3.1 of the covering report; paras 2.6, 3.4, 3.5, 5.6, and, 5.12 of the Statement of Pensions Policy at appendix 1);

(3)            The SKDC Statement of Pensions Policy “New Look scheme 2008 will be effective from 1^st April 2008; to enable the effective introduction of the scheme, the Council is required to restate its discretions alongside the scheme changes;

(4)            Definitive guidance is still awaited on some of the details of the scheme and legislation may result in further amendments to the scheme.  The Cabinet notes that, in this event, a further report will be presented to a future meeting;

(5)            Noting advice given at the meeting by the Section 151 officer regarding the minimum employee contribution of 6.3% and the need to formalize the previous arrangements for the early release of pension to include particular safeguards when individual cases are assessed.