At a meeting of the EMPLOYMENT in HAMPSHIRE COUNTY COUNCIL COMMITTEE HELD at THE CASTLE, WINCHESTER on MONDAY

20 FEBRUARY 2006

Present:

Councillors:

24 APOLOGIES FOR ABSENCE

Apologies for absence were received from Councillors Baulk, Collett and Gill.

25 DECLARATIONS OF INTEREST

Members were mindful that, where they believed they had a personal or personal prejudicial interest in any matter to be considered at the meeting, they should normally, at the time of the debate, declare their interest and, having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the County Council's Code of Conduct, consider whether to leave the meeting whilst the matter was discussed.

26 CHAIRMAN'S COMMUNICATIONS

There were no communications from the Chairman.

27 DEPUTATIONS

There were no deputations.

28 EXCLUSION OF THE PRESS AND PUBLIC

RESOLVED:

That, by virtue of paragraph 9 of Part 1 of Schedule 12a of the Local Government Act 1972 the press and public be excluded from the remainder of the meeting.

18 PENSIONS ISSUES

The Committee considered further a range of confidential issues identified at the previous meeting. The Committee received a presentation by the Actuary to the Pension Fund and a confidential report prepared independently by Burgess Salmon LLP about issues to be taken into account when the Government's single new pensions regime based on a lifetime allowance comes into existence.

The key issue was the impact of the new lifetime allowance limits on the benefits of senior staff. In this context the Committee emphasised that, whatever option senior staff might elect to follow, no costs would fall to be met by council taxpayers.

The options considered by the Committee were, in outline, to bring forward service enhancement or to make alternative compensation arrangements should senior officers opt out of the Local Government Pension Scheme - either taking into account or not taking into account past service. Independent legal advice was that each of the options was lawful having regard both to statute and case law.

The Committee was mindful that, at this stage, only draft Regulations had been published by the Government and that these were still the subject of consultation. There were also age discrimination issues which the Committee asked Burgess Salmon LLP to pursue. Accordingly the Committee agreed to information about each of the options being made available to senior staff on that provisional basis, the Committee to meet again in late March to consider the latest position.

RESOLVED:

a) That a further meeting of the Committee be held in late March 2006 to consider the issues further in the light of the information then available;

b) That, in the meantime, the options presented to the Committee be shared with senior staff directly affected at this time on the basis that the Committee, whilst minded to agree the options, wishes to review the matter at the meeting referred to in (a) above; and

c) That the Committee reaffirms that the final arrangements will not impact on council taxpayers and that the Committee welcomes the independent legal advice that there are no legal issues arising from adoption of the options referred to in (b) above.