Agenda item

The Board has requested an update on pensionable pay relating to Day Related Flexible Hours Allowance and Variable Crewing Hours Allowance. The Board are asked to note the update.

Witnesses:

Sally Wilson, Scheme Manager

Key points raised during the discussion:

1. The Scheme Manager introduced an update report on pensionable pay and highlighted that following taking of legal advice all those affected had received communication.  Governance processes and financial implications had been reviewed.  Further communications would be sent to members aligned to their individual circumstances and an email box had been set up to deal with concerns raised.
2. A Member stated that the last sentence of paragraph 2.2 was incorrect in that the Fire Brigade Union did consider this to be pensionable pay.  The Scheme Manager, although not involved in historical discussions, explained that legal advice was taken at the time and this was the national picture.
3. A Member stated that the letter sent out regarding overpayment made no mention of entitlement to additional pension benefit and had caused confusion.  He requested that a second letter be sent.  The Scheme Manager explained that the letter was intended to highlight both and that it had been worked with legal colleagues.  She assured the Board that future communications would be clear and undertook to update the ‘Frequently Asked Questions’ page.
4. A Member asked what criteria had been applied in determining which members should or shouldn’t have their entitlement increased because of this or have all those that have either worked on the variable duty crewing system or on the day contracts since their inception in 2004 and 2008 been written to.  The Scheme Manager confirmed that they had all been written to.
5. A Member asked what criteria had been applied to determine who would or wouldn’t have to pay the difference in their pension contributions and how any underpayments on contributions were to be made.  The Scheme Manager explained that this was being looked at and was part of the next steps to be taken and was happy to update outside of the Board meeting as well as to the next Board meeting.  The Chairman requested that both happen.
6. A Member questioned why overpayments could be requested before underpayments had been paid to members.  He also stated that the statute of limitations gives a limit of six years for underpayments and the legislation regarding overpayment is separate and has no limit.  Therefore, payments need to be made quickly to members.  The Scheme Manager explained that this was a complex process and these questions were being discussed at the project board but action was being taken as quickly as possible and not waiting until all the answers were known.
7. A Member stated that, in relation to the risk register, in April 2020 some members pay had been reduced and the variable crewing contract had ceased.  Members that were working that contract until April could now be asked to pay overpayments but receive no pension benefits for that service on a final salary scheme.  He also stated that members were asking why they were being chased for payments when their contracts stated it was not pensionable and this influenced their signing to the contract and that they would receive no benefit for working that system. The Scheme Manager said that conversations were ongoing regarding pension implications and that the Council were obliged to work within the legal landscape which had changed.  The Member was unhappy with this response and said that action should have started in 2011 and wants the Council to take this into consideration when asking for payments as many members were suffering financial hardship.
8. In response to a Member question the Scheme Manager confirmed that there was no timescale yet for when benefit payments would be made but work was being undertaken as quickly as possible.  She also confirmed that the Project Board next meets in December.

Actions/ further information to be provided:

1.    That the Scheme Manager update the Board outside the Board meeting as well as to the next Board meeting.

Resolved:

The Board noted the report.