Gold plated Council pensions only for Chief Officers

Working with the GMB trades union, Labour‘s London Assembly candidate Andrew Dismore has used the Freedom of Information Act to find out the true figures for Barnet’s pension fund, which has revealed that the highest pension payment is £75,000 pa and the lowest only £12.72. Moreover, there is no need either to cut benefits or increase contributions: the Council is even paying off deficit faster than necessary. (FoI responses attached)
Andrew Dismore said:
“The Conservatives have spouted a lot of rubbish about the public sector pension funds in their efforts to justify increased contributions and reduced benefits. My Fol request has shown that this is not necessary, certainly as far as Barnet is concerned.
What is needed is greater equity within the system. It is not fair that there is such a huge disparity between those at the top and those who work hard to keep the Borough moving. It is not fair that one pensioner alone, a former chief officer, can pocket £75,000 in pension, when a refuse collector’s basic salary when still at work is less than 1/5th of that, never mind how low their pensions are after retirement , at an average of only 1/25th of that figure, just over £3,000.
Leading Barnet Councillors like Brian Coleman should now come clean and tell the truth about public pensions and not demand ever more from those at the bottom of the tree in their efforts to provoke industrial action and destroy relations with the workforce”.
Keith Williams GMB regional officer added:
“Even the average figures show former chief officers received £25,000 pa, whilst a road sweeper gets only 1/8th of that. If anyone is milking the system it is the senior officers, not those who do the unsung day to day work that council tax payers need to keep the borough moving and on which the borough prides itself – the refuse collectors, gardeners and road sweepers”.

Notes to editors:

For further information contact Keith Williams: 07710 631 339
Andrew Dismore: 07957 625 813
Responses to Fol requests set out below:
FOI – Pension Fund Payments
Could I please have the following information concerning payments from the Council’s staff pension fund:

1 what is the current annual average pension paid per annum
The current annual average pension paid per annum is £ £4,799.91

2 what is the current lowest pension paid per annum
The current lowest pension paid per annum is £12.72

3 what is the highest pension paid per annum
The highest pension paid per annum is £74,969.16

4 what is the average pension paid to those who were formerly in chief officer grades prior to retirement
The average pension paid to those who were formerly in chief officer grades prior to retirement is £24,984.
5 what is the average pension paid to those who were formerly i) refuse collectors ii) gardeners iii) road sweepers iv) teachers prior to retirement
The average pension paid to those who were formerly refuse collectors prior to retirement is £3,431.54
The average pension paid to those who were formerly gardeners prior to retirement is £6,986
The average pension paid to those who were formerly road sweepers prior to retirement is £3,392

The average pension paid to those who were formerly teachers prior to retirement is £3,933, however, this is only the portion that the authority is liable for and teachers may also receive pension payment from the Teachers Pension Agency.
NB the calculation of the average pension in question 4 and 5 is based on information held since 2005.

FOI – Council’s staff pension fund
Could I please have the following information concerning the Council’s staff pension fund:

1. What has been the recommended employer contribution rate for LB Barnet set by the fund actuary for each year since 1988
NB: I am sorry we are only able to provide information from 2008/09.
2008 – 23.3%,
2009 – 24%,
2010 – 24.8%,
2011 – 24.8%.
2. The contribution (expressed as % of pensionable paybill) the council has made to the Fund in each of those years.
2008 – We do not hold this information
2009 – 23.3%
2010 – 24.0%
2011 – 24.8%
3. The steps the London Borough of Barnet is taking to maximise employee participation in the Local Government Pension Scheme.
We admit to the LGPS all those employees that are eligible and provide pension information with their contract details. Those that wish to opt out are required to complete an opt out form which gives them information on what benefits they are giving up.

4. The reasons the London Borough of Barnet agreed a deficit repayment period that is considerably shorter than the national average and below that of other employers in the Barnet Pension Fund.
It is important that the Council recovers the deficit as quickly as possible – this is a key objective of good governance of the Fund.

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