Pensions and pay update

An update from Bethan Osborne, BALC HR adviser: 

Pensions
Further to the article published in the September 2014 newsletter we have received some helpful clarification from a County Pensions administrator which helps put in context apparently contradictory advice within the ‘Being a Good Employer’ guide and rules for auto-enrolment of pensions. 

Town and parish councils can provide a scheme before the staging date but (other than where the Scheme is the LGPS) can’t contribute to it. Once Councils reach their staging date they need to make a choice as to what scheme they want to use to fulfil their responsibilities and, whatever scheme is chosen, they will be able to make an employer contribution to it. The administering authority has no responsibility to tell town and parish councils what they can and can’t do. The assumption is that it is the auditor’s role to check whether an employer is doing something they should not be doing."

Please note that ‘Being a Good Employer’ was written in 2010, before the pensions reforms and auto-enrolment were introduced to the statute book, and is to be revised by NALC and SLCC in the coming months. 

The National Pay Agreement.  The Local Government Employers and main unions who are signatories to the “Green Book” have agreed a settlement on council staff salaries to April 2016.  There are 1.5 million employees affected by this settlement.  The agreement is worth an average of 2.35% with some of the lowest paid staff receiving significantly higher pay rises.

The   NALC and SLCC  announcement is here  Councils with staff at scp5 need to take immediate action as the existing pay rate is below the new National Minimum Wage level of £6.50/hour.  There will be payments which will need to be included in the December 2014 payroll and further increases from April 2015.