Gold-plated pensions for Exeter councillors

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Tuesday, March 03, 2009
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This is Exeter

COUNCILLORS have voted in favour of being able to join a gold-plated pension scheme.

Members of Exeter City Council, which has just cut £1.5m from its budget and made more than a dozen staff redundant to balance its books, were split evenly over whether to take part in the Local Government Pension Scheme which previously had been only open to staff.

Lord Mayor Councillor Paul Smith cast the deciding vote in favour of the measure.

Councillors can choose whether or not to opt into the scheme, which one expert told the Echo was one of the best available.

Taxpayers' money will be used by the authority each month to match contributions made by councillors, based on their allowances. If all councillors decided to join, it would cost the taxpayer around £50,000 in the first year.

The move has been criticised by the Taxpayers' Alliance and a group representing Devon pensioners.

But leading councillors have defended the decision.

Councillor Pete Edwards, a former leader of the council, who represents Whipton Barton, said: "To do your job as a councillor properly you need time off from work.

"If over 20 years you have a day off a week, it adds up to a sizeable portion of your pension.

"You shouldn't have to do council work and lose money off your pension. I am 63 so I won't be opting in — but my view is that for the young people they should be able to opt in."

Council leader Adrian Fullam voted against the measure and said he would not opt into the scheme.

But he said the move could encourage younger people to stand as councillors.

"It will be up to individual councillors if they choose to opt into the scheme," he said. "I am 36, I voted against it, have voted against it for the last five years and will not be opting in.

"My feeling is that I knew what I was getting involved in when I got elected.

"However, a number of younger councillors have recently stood down and not sought re-election in order to concentrate on their careers."

Cllr Fullam said the Independent Remuneration Panel has consistently recommended that councillors should be able to opt into the scheme.

Councillors can elect to join it, provided they are under 75 and are able to draw their pension from age 65.

They can elect to take the pension from age 60 but it would be at a reduced rate.

But Rob Hannaford, councillor for St Thomas, spoke out against the move.

He said: "I don't think that pensions for councillors is the right way forward.

"Indeed, during these difficult economic times, I think this sends out entirely the wrong message to our electors, many of whom are struggling to pay their bills and could even be facing unemployment."

Mark Wallace, campaign director for the Taxpayers' Alliance, said: "I think this is utterly wrong for councillors to jump on the gravy train.

"Local government pensions are a huge financial burden for taxpayers when it is just staff that is involved, without any extra for councillors.

"This is a pension that is so generous that it would be unavailable to most of their constituents."

Colin Hadley, chairman of the Devon Pensioners' Action Forum, said: "This decision is extremely unfortunate because the city council is in a parlous state.

"I am sure our members will be very angry over this decision."

Exeter is the first district council in the region to allow councillors access to pensions. Both Mid Devon and East Devon district councils have rejected the proposal.

Karen Williams, of the Exeter City Unison branch, said: "I think that Unison would support their right to have access to the scheme. The work they do is of benefit to the council and the work that the council does."

A spokesman for the Local Government Association said around 40 per cent of councils offered access to the pension scheme.

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25 Comments

  • Profile image for This is Exeter

    by anon, exeter

    Wednesday, March 04 2009, 2:37PM

    “absolutely disgusted. This is unbelievable.”

  • Profile image for This is Exeter

    by Anon, Exeter

    Wednesday, March 04 2009, 12:07AM

    “Perhaps the whingers would like to take the instance of Rob Hannaford on board. A full-time Councillor serving both Devon and Exeter. Clearly he's not getting much fiscal reward from his duties so why does he do it? Maybe he cares - maybe they all care - maybe the tens of thousands who work in serving the public ALL CARE. Some people - carefully selected by the Echo I have no doubt, have way too much time on their hands to sit at their pooters and rant.”

  • Profile image for This is Exeter

    by free wessex, on the border

    Tuesday, March 03 2009, 8:07PM

    “who is Mark Wallace, campaign director for the Taxpayers' Alliance?
    Does he and his organisation have a democratic mandate?”

  • Profile image for This is Exeter

    by Ted Hearn, Cowley

    Tuesday, March 03 2009, 7:49PM

    “I'm glad I live in East Devon and that it stays that way.Councillors should work purely on a voluntary basis,for the good of the community.Pensions should be self-funded.Just another piece of hypocrisy.Are we so suprised ?”

  • Profile image for This is Exeter

    by Nigel M, Cullompton

    Tuesday, March 03 2009, 7:40PM

    “"The percentage of my money the currently goes towards someone else's pension should be put towards..."
    Well Tony - don't forget that a percentage of pretty much every pound you spend goes to an employer's contribution to someone else's pension pot - but in the private sector where no-one hears about it (AND you suppliment it with tax breaks)
    By the way - don't believe the recently touted "26% of council tax" recently spread by the Taxpayers Alliance - that is one of their better distortions.”

  • Profile image for This is Exeter

    by John, Dawlish Warren

    Tuesday, March 03 2009, 7:39PM

    “I've got an idea. if they can retrieve all the cash they have lost in those dodgy Icelandic banks. Then spend that on all things we need from the council, why don't we allow them what's left for their pensions!!!!
    Please please is there anyone out there in council land who understands what is going on in the real world?”

  • Profile image for This is Exeter

    by nigel, exeter

    Tuesday, March 03 2009, 7:38PM

    “if we voted them out, would they still get their golden payments??”

  • Profile image for This is Exeter

    by Russell, Exeter

    Tuesday, March 03 2009, 7:33PM

    “I would just like to add my bit about OUR councillors. The fact is that they should be answerable to the tax payers of this City. We keep getting it pumped into us that we have to have rises in our Council tax to pay for services and then low and behold they lose 5 million pounds of our money because they have invested in high interest, high risk banking systems. We get told that this was done under the advice of the goverment but if the goverment said to the Councillors take cuts in your wages as most of us are being told we have to do to keep our jobs would they then take notice of the goverment? I don't think so. They are Our representatives so if they want Our votes next time i ask them to take notice of THEIR voters when we speak.”

  • Profile image for This is Exeter

    by Alex, Exeter

    Tuesday, March 03 2009, 5:57PM

    “The fact that this even comes up for discussion is incredible, in times of recession, redundancies and business closures, some grandiose scheme like this should not even be made available to them.

    It's utterly disgusting , I hope it gets stopped and soon, before the council loses any credibility it has left.”

  • Profile image for This is Exeter

    by Tony Marshall, Whipton

    Tuesday, March 03 2009, 5:39PM

    “I am quite disgusted, it is time the lax payer stopped paying anything towards local government pensions. The percentage of my money the currently goes towards someone else's pension should be put towards social services and the elderly. If they want a pension then save up for it like the rest of us. If you dont want to be a public servant get out.”

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