Councilors to get severance pay!!!

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  • #54593

    99DylanJones
    Participant

    You may think this is a joke thread but it is reality — if the Council mergers go through in about 2017 and there are less seats it appears that legislation passed for the recent Northern Ireland elections by the appropriate Department in Westminster will see many Councilors collect a severance package. http://www.doeni.gov.uk/apr_2013_consultation_document_on_severance.pdf

    Depending on how long they have served they could get up to 67,000 Euros all from ratepayers funding..

    Councillors get pay-offs of up to

    This has just happened in Northern Ireland so could happen here in Wales unless ratepayers make sure when the time comes for a consultation the people speak out against these payments.

    This will be an almighty disgrace if it goes through unchallenged– anyone heard about this discussion in Wales yet.

    #68232

    wrexview
    Participant

    Some have over 40 years service!

    #68233

    wrexview
    Participant

    If you include the Borough Council before it became Wrexham County Borough.

    #68235

    Alunh
    Participant

    These things are the so-called black holes that both Councils and Companies have on their books. When Woolworths was liquidated it was the Pension liability levels that took it under and Pension arrangements within all Public Sector environments are notoriously generous. I have no gripe with anyone having their justifiable rewards but the Woolworths style scenario could easily become a reality for local government if old ways aren’t ditched.

    #68239

    99DylanJones
    Participant

    Councillors will however tel you that they are not employed and they claim an allowance so why is there a severance package. They are all in position at the whim of the electorate through the ballot box– looks like if we vote for a change the vote will cost us all money – totally illogical.

    #68238

    BenjaminM
    Participant

    Oh, I do love a good fairy tale where facts aren’t allowed to interfere with fantasy.
    I agree totally with the initial post by Dylan but I must dispute some of the assertions made subsequent to that.
    The reason that pension funds in general found themselves in a somewhat precarious position was a downturn in the global investment market, not as stated on a thread running concurrent to this one, high wage rises under the Brown/ Blair era.

    As from April of this year, the LG scheme has been amended so now that instead of working on 1/40ths, pensions will be calculated on 1/49th of pensionable pay. It will still cost the employee, on average, 6.5% of their pay but reduce the employers cost by 2%.
    In other words, more contributions for less return. And that is notoriously generous ?
    At let us not forget the Workplace Pension Scheme that will, by 2018, cost employees up to 4%.
    Very enlightening reading some of the posts on this forum. I really think that some wish that we were back in Dickensian times rather than the 21st Century.

    #68240

    99DylanJones
    Participant

    Thanks Benjamin for highlighting the future changes. Unfortunately we are all however paying for historical work and the economic downturn. My real issue is as a ratepayer I would hope that what I pay would be used for services being delivered either now or in the future. There is clearly no easy answer to this and something for all the Public Sector to deal with.

    #68236

    Alunh
    Participant

    The Blair years saw an increase in public sector employment from some 5,221,000 public sector employees around the millennium time to some 6,070,000 in 2009 – an increase of 849,000.

    A large part of these carried pension commitments (which is quite right). This is combined with the fact of the baby boomer generation coming to retirement.

    This week a fresh warning by Investec’s head of value Alastair Mundy was made about public sector commitments. Mundy said: ‘This level of debt is extraordinarily high and leads me to the conclusion that something really extreme has got to happen to normalise these conditions. “I think that government debt is going to be the next story in town”

    Despite austerity measures to reverse some of the effects of the Blair years, as well as the various measures that have NOW been taken to reduce pension commitments (as Dylan mentions), the pent up cost of public sector pensions, as nurses and teachers begin to retire, is quite frightening.

    The liability for public sector pensions, covering nurses, doctors, the Armed Forces and civil servants, is around £1.7 trillion

    No one Benjamin is trying to introduce some sort of Dickensian agenda to this problem and it is to be presumed that all reasonable commentators would want people coming to retirement to enjoy excellent pensions.

    Equally the cake is only so big and all these costs to get people off the books in one way or another mount up

    #68234

    Mike Davies
    Participant

    I don’t think we should confuse pensions with councillor’s pay/allowances.

    #68237

    Alunh
    Participant

    Agreed Mike

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