Councillors enjoy big pension perk

South Wales Evening Post - 3 March 2009

Dozens of councillors have joined a subsidised pension scheme, as well as receiving their allowances.

In total, 27 Swansea, 50 Carmarthenshire and nine Neath Port Talbot councillors are currently participating in the publicly-funded local government pension scheme.

The scheme's website describes it as "heavily subsidised" by the employer, and a valuable financial reward.

Councillors who sign up pay at least six per cent of their allowance, guaranteeing them a secure pension which keeps pace with the cost of living, plus a lump sum payment on their retirement.

Participants can choose to retire aged 60 and receive benefits immediately, although they may be reduced.

They can also, with the council's consent, retire at the age of 50 and receive benefits immediately.

Councillors contacted by the Post have defended the pension provision. However, some people feel public sector pensions are enough of a drain on taxpayers' money as it is.

Leader of Swansea Council Chris Holley said the pension scheme was recommended by an independent Welsh remuneration panel, with councils adopting it after 2004.

Councillor Holley, who is participating in the scheme, said his colleagues worked harder than ever.

"I feel that councillors are grossly undervalued compared to MPs and AMs," he said.

"Some councillors I know represent quite difficult wards, and are available to the public 24 hours a day."

Another long-serving councillor, Ioan Richard, explained that he had lost out on pension entitlements from previous jobs over the years, because of his public service.

"Why can't we have a pension? Everyone else can," he said.

A spokesman for the authority said councillors did not receive a "final salary" pension scheme — offered to its officers — but a more modest "career average pay" benefit instead.

Carmarthenshire has the fifth highest number of councillors participating in the pension scheme out of all the councils in England and Wales who responded to questions from campaign group The TaxPayers' Alliance. Carmarthenshire's director of resources, Roger Jones, echoed Councillor Holley by citing the recommendations of the independent remuneration panel.

"It is a matter for individual councillors to decide whether they wish to join the scheme," he said.
The TaxPayers' Alliance was critical of pension schemes for serving councillors, claiming their pay should be a reimbursement rather than a conventional, pensionable wage.

The Welsh Local Government Association hit back, saying it was vital to reward councillors appropriately to encourage good candidates to step forward.

Councillor Holley added: "I think groups like the TaxPayers' Alliance believe we just sit around and drink coffee all day."





(Editorial)


THE number of councillors joining their own council pension schemes is a surprise: 50 in Carmarthenshire, 27 in Swansea, and nine in Neath Port Talbot.

Councillors’ pensions are not final salary — where the size of the pension is decided by the salary received when someone finishes work — but on an alternative scheme that works out a person’s average earnings over the length of time employed. Councillors do contribute to their pensions, but there is also a contribution from taxpayers’ cash.

It is all too much for the Taxpayers’ Alliance pressure group, but perhaps it is an inevitable consequence of the changing role of our councillors. There are fewer doing it as well as a full-time nine-to-five job.

With concerns about whether many councillors have the necessary skill and competence to do the job must come an acceptance that, to attract the right calibre of candidate for election, we need to offer the right level of financial security.

If we want professional politicians to run our county halls, we have to pay for it — including pensions.