Issue - meetings

To consider a report of the Executive Councillor (Governance & Corporate Services).

The Deputy Leader of the Council (Governance and Corporate Services) (Councillor Martin Candler) submitted a report (copies of which had been circulated) outlining the implications of the Pensions Acts 2008 and specifically the requirement for employees to be automatically enrolled onto pension schemes.

RESOLVED – That approval be given to the use of Transitional Delay and Postponement in combination to provide the most cost effective means for the Council to secure compliance with auto enrolment.

To consider a report of the Executive Councillor (Governance & Corporate Services)

Officer contact: Laureen Donnan, 0161 474 3180, Laureen.donnan@stockport.gov.uk

The Executive Councillor (Governance & Corporate Service) submitted a report (copies of which had been circulated) inviting the Executive Meeting to consider the implications of the Pensions Acts 2008 and specifically the requirement for employees to be automatically enrolled onto pension schemes. The report proposed to use the ‘postponement’ and ‘transition’ facilities, as provided for in the Act and Regulation to defer the implementation from April 2013 until September 2017 due to the financial costs associated with the implementation and the impact on the Human Resources and Payroll functions at a time of transition to new ways of working.

The Leader of the Council reported that the matter had been considered by the Corporate, Resource Management & Governance Scrutiny Committee and would be considered by the Council Meeting on 14 February 2013.

It was also emphasised that the Council encouraged all employees to join the appropriate Pension Scheme and deferring implementation of auto-enrolment would not change any employee’s right to join the scheme at any time.

RESOLVED – That the Council Meeting be recommended to agree to apply the Transitional Delay and Postponement provisions of the Pensions Act 2008 and February 2012 Regulations as the most cost effective means for the Council to secure compliance with pension auto-enrolment.

To consider a report of the Corporate Director for Corporate and Support Services.

The report outlines the requirement for all employers to comply with new pension duties which have been introduced in stages from October 2012.  If no deferment decision is taken, the Council’s significant staging date will be 1 April 2013.  Whilst the new regulations are mandatory, employers have some flexibility regarding their implementation.  This report outlines the principles of the regulations and the key decisions to be made. It recommends the options to use Transitional Delay and Postponement of Auto Enrolment to defer its implementation for the majority of the Council’s workforce.

The Scrutiny Committee is recommended to comment on the proposed use of Transitional Delay and Postponement in combination to provide the most cost effective means for the Council to secure compliance with auto enrolment and recommend approval of this approach to the Council.

Officer contact: Laureen Donnan on 474 3180 or email: laureen.donnan@stockport.gov.uk

(NOTE: The Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 in order that this Scrutiny Committee could consider the proposals prior to the Council Meeting on 14 February 2013.)

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) setting out the requirement for all employers to comply with new pension duties which had been introduced in stages from October 2012.  If no deferment decision was taken, the Council’s significant staging date would be 1 April 2013.  Whilst the new regulations were mandatory, employers had some flexibility regarding their implementation.  The report outlined the principles of the regulations and the key decisions to be made. It recommended the options to use Transitional Delay and Postponement of Auto Enrolment to defer its implementation for the majority of the Council’s workforce.

The following comments were made/ issues raised:-

·         The Scrutiny Committee noted that, once risk assessed, provision would need to be made within the 2013/14 budget proposals in relation to the costs associated with Pension Auto-Enrolment.

·         The potential financial implications in relation to schools as shown within the table in the report would be met from the Dedicated Schools Grant.

·         Clarification was sought as to why Stockport Academy was not shown within Appendix 1 of the report.

RESOLVED - (1) That the proposed use of Transitional Delay and Postponement in combination to provide the most cost effective means for the Council to secure compliance with auto enrolment be noted.

(2) That the Corporate Director for Corporate and Support Services be requested to provide members of this Scrutiny Committee with clarification as to why Stockport Academy was not shown within Appendix 1 of the report.