Agenda item

Pay Policy - New Pay Spine

The Director for Corporate Services to submit a report to:

 

To gain approval for the 2019/20 Annual Pay Policy Statement so that it can be published in line with the requirements of the Localism Act 2011.

 

To highlight and gain approval for the introduction of the new national pay spine effective from 1 April 2019. 

 

To review the Council discretions in relation to the Local Government Pensions Scheme. (LGPS) to ensure they are fit for purpose.

 

 

 

Minutes:

The Director for Corporate Services submitted a report (copies of which had previously been circulated to Members)

 

(a)  seeking the Committee’s approval for the 2019/20 Annual Pay Policy Statement to be published, in line with the requirements of the Localism Act 2011

(b)  highlighting and seeking approval for the introduction of the new national pay spine, effective from 1 April 2019

(c)  reviewing the Council discretions in relation to the Local Government Pensions Scheme (LGPS), to ensure they were fit for purpose.

 

The Human Resources and Communications Manager

 

(a)  highlighted the following key issues

                      i.        Pay Spine: The National Joint Council (NJC) pay agreement for 2018 to 2020 included the introduction of a new pay spine from 1 April 2019, as detailed at Appendix A of the report.  The new spine incorporated changes, as detailed at paragraph 3.1 of the report,  which had been discussed with Unison and had been subject to an Equalities Impact Assessment (no impact had been identified).

                    ii.        Pay Policy Statement: The Localism Act 2011 required the Council to prepare a Pay Policy Statement, as detailed at Appendix B of the report each year.  It states the Council’s approach to matters relating to the pay of its workforce.  There were no issues to highlight and following consideration at this meeting, it would be submitted to Council on 13 February for approval.

                   iii.        Pension Discretions: The pension regulations required the Council to formulate, publish and keep under review its policies concerning areas of the Pension Scheme, where it may exercise its discretion.  The five discretions were detailed at paragraph 3.7 of the report and at Appendix C of the report.  Following the introduction of the Local Government Pension Scheme (LGPS) (Amendment) Regulations 2018, two new discretions were proposed, as detailed at paragraph 3.9 of the report and at Appendix C of the report.  In addition, minor amendments were proposed, concerning delegations of altered roles and structures and there were an additional five discretions, as detailed at Appendix C of the report and it was advisable to have a written policy on these, in order that members could be clear on the matters.

 

A Member  raised the reference to ‘members’ at paragraph 3.9 of the report, stating that the Council did not and had never paid a pension to Councillors.  The Human Resources and Communications Manager clarified that the term ‘member’ here referred to members of the pension scheme not Councillors.

 

There was a discussion on the new national pay spine, as detailed at Appendix A of the report.  A Member observed that this Committee and Council had approved the implementation of the National Living Wage (at a meetings held on 13 April 2016 and 8 February 2017) and queried why the new pay spine was submitted for consideration.

 

The Director for Corporate Services and the Human Resources and Communications Manager explained that Members had previously approved the amendment of the Pay Policy from 2017/18, to pay the National Living Wage, as a replacement to the Living Wage Foundation rate.  In 2018, the National Joint Council had confirmed a nationally agreed pay deal (this had been incorporated into the new pay spine, submitted at this meeting), which superseded the proposals agreed by Members previously.

 

A Member referred to paragraph 3.9(ii) of the report, asking what arrangements were in place to protect those suffering illness.  The Human Resources and Communications Manager confirmed that a process was in place, enabling members of the pension scheme to apply for the release of pensions on the grounds of ill health.  Members were referred to the Council’s Occupational Health Service, who decided fitness and Leicestershire County Council were advised to release pensions if applicable.  The current process would continue.

 

There being no further comments or questions from Members, Councillor Orson moved the recommendations and Councillor Glancy seconded.

 

RESOLVED that

 

(1)  the local arrangements for implementing new national pay spine be effective from 1 April 2019;

 

(2)  employees receive any increment due on 1 April 2019, in advance of the new pay spine being applied;

 

(3)  comments provided by Members on the Pay Policy Statement be submitted to Council;

 

(4)  comments provided by Members on the proposed revisions to the pensions discretions be submitted to Council;

Supporting documents: