Agenda item

(To receive a report from Fiona Thompson (Service Manager – People) which provides detail of the administrative changes to the Council's Flexible Retirement Policy as a result of the new arrangements established between West Yorkshire Pension Fund as the main pensions administrator and Serco as the HR and payroll provider.  The report also reflects the changes in Pensions regulations)

The Pay Policy Sub-Committee received a report which advised that the Council's Flexible Retirement Policy had been updated.  It was reported that the changes had been made in light of financial challenges to ensure that policy was more flexible for the Council to use as a cost effective option to enable the retention of key skills in the short/medium term to meet operational needs e.g. as a transition arrangement as part of a service restructure.

It was also noted that there was a need to reflect administrative changes to the Policy as a result of the new arrangements established between West Yorkshire Pension Fund as the main pensions administrator and Serco as the HR and payroll provider.

Members were advised that this policy enables an employee to draw down their pension at the same time as remaining an employee of the Council, provided there was a reduction in their grade or hours or both.  When an employee was 55 years or older, and had at least 2 years pensionable service, s/he may be eligible for flexible retirement, subject to the Council's consent and specific criteria.

Members were provided with an opportunity to ask questions to the officer present and some of the points raised during discussion included the following:

·         It was clarified that the release of a pension was not classed and exit payment, but a change in contract as the person would still be employed without a break in their employment.

·         It was suggested that there should be some sort of member oversight, and they should be made aware of these requests.  It was acknowledged that members were aware that this was not a member decision, but it was felt that they should be kept up to date with the situation.

·         It was reported that if an assistant director or above wished to take flexible retirement, this request would need to be considered by the Appointments Committee.

·         It was commented that this was an excellent scheme.  However, concerns were raised regarding what would happen if this became too popular, as it could end up costing the authority more money. 

·         It was emphasised that this was a voluntary scheme, and requests would have to be authorised by a manager.

·         This scheme allowed people to proceed more smoothly into retirement.

·         It was commented that this scheme was positive as the council still had to function, but assurance was needed that different areas of the council would continue to perform and that there will not be any gaps.

·         It was noted that reasons would need to be provided for any requests which were turned down.

·         It was requested that wording be added to the policy to include the need for member oversight/monitoring of the trends in requests for flexible retirement and also that where requests come from people holding key posts (grade G12 and above), that the portfolio holder for HR should be made aware.

RESOLVED

That the changes to the Council's Flexible Retirement Policy be noted and approved, subject to the following:

1.    That the procedure for requests for flexible retirement that come from assistant director level or above be included within the policy;

2.    That the Portfolio Holder for HR be made aware of any requests from employees at Grade G12 or above.

3.    That general monitoring of trends be undertaken and reported to members.