Issue - meetings

Report number CEX383 by the Chief Executive.                         (Enclosure)

[Appendix A to report CEX383 contains exempt information

as defined in paragraph 2 of Schedule 12a of the Local

Government Act 1972 (as amended).  This information is

confidential because is likely to reveal the identity of individuals.

Appendix B(1)-(3) to report CEX383 contains exempt

information as defined in paragraph 5 of Schedule 12a of

The Local Government Act 1972 (as amended).  This

information is confidential because legal privilege exists.]

DECISION: To note and accept the outcome of the investigations into the adoption by the authority of a local pension scheme in 1996 and to endorse both the actions taken to resolve this matter and the action plan that has been prepared.

In his report number CEX383, for the benefit of new members to the Council the Chief Executive referred to his previous advice to Council on 7^th September 2006 about the receipt of and Opinion from Queen’s Counsel on a specific aspect of the Council’s pension scheme that had been known as the “rule of 70”.  This had been a discretionary element which allowed an employee (or ex-employee) to retire on a full pension if their age and length of service totalled 70 or more.  In the opinion of Counsel, this provision was unlawful.  Due to the legal complexities surrounding the implications of the view, further Opinion and investigations were necessary before any recommendations could be made to the Council regarding potential action.

A further report had been made to the Council on 26^th October 2006 following careful analysis of all those cases that had been dealt with under this rule of 70, together with additional advice received from Counsel on the authority’s options for dealing with these cases.  Due to the complexity of this advice, it had been reproduced in full as an exempt appendix to report CEX383.  The Monitoring Officer was satisfied that the legal opinion received was robust and unequivocal.  The contents of this appendix were confidential because legal privilege existed.

The outcome of the investigations into the individual cases had led to a number of recommendations and learning points which the Chief Executive had assembled into an action plan.  This action plan had now been implemented in consultation with the Resources & Assets portfolio holder.  A copy of this action plan was also appended to the report as an exempt document.  The action plan was confidential as it contained information likely to reveal the identity of particular individuals.

The Chief Executive went on to highlight some of the key lesson learnt, particularly the importance of having strong corporate governance arrangements.  The new structure introduced last year had strengthened the importance of these proper procedures as well as securing the right outcomes and this had been reinforced by specific training for all service managers.

The Chief Financial Officer confirmed that the Council’s external auditors had been kept fully informed of developments in this matter.  Pending the outcome, they had not formally concluded their audit or issued an audit certificate for last year.  It was now anticipated that following the conclusion of this matter, they would consider issuing the audit certificate in due course.

Members’ attention was drawn to two amendments to the report; on page 3, paragraph 7 should read “At that meeting the Council resolved the following”; and

Page 4, paragraph 10 should read “This analysis identified a total of 23 cases which did not meet with a separate provision of the national scheme  ...  view the full minutes text for item 64