Spotlight on South Lanarkshire

Here's a recent FOI review request to South Lanarkshire Council - following the release of certain information about the early retirement of the council's former Executive Director of Corporate Services - in March 2006.

The first review request asks the council to explain why a senior official had his pension benefits enhanced by almost £300,000 - using public money, of course - simply because his fixed term contract came to an end.

The second review request asks the council to explain why the official's pension package was boosted by 7 years and six days - when regulations (Para 51. 2) require employers to choose the shortest or less costly option - in this case 6 and 243 days.

Another curious aspect of the case is that the post of Executive Director of Corporate Services was replaced - at a further cost of @ £120,000 a year - as opposed to being made redundant.

So, South Lanarkshire Council has some explaining to do - watch this space for further details.

By e-mail to – foi.reviews@southlanarkshire.gov.uk

Dear Colleague

South Lanarkshire Council – FOI Review Request

I refer to the letter from South Lanarkshire Council dated 13 September 2010. I am asking for a review of the Council’s initial decision because it fails to explain properly key aspects of my original FOI request.

Original FOI Request 3
If so, what were the reasons for allowing the Executive Director to retire early, when did the council approve his early retirement and on what date did his retirement take effect?

South Lanarkshire Council’s answer
The principle of fixed terms contracts for Executive Directors was approved by the Executive Committee (of South Lanarkshire Council) on 27 February 2002 and Alan Cuthbertson’s employment was terminated on 31 March 2006.

Review Request (1)
I note that the council terminated the Executive Director’s employment on 31 March 2006, i.e. the day before the pension scheme regulations changed. But the Council’s answer does not explain the actual reasons for allowing this employee to retire so early and instead merely points to the mechanism by which this was facilitated, i.e. by a previous decision of the Executive Committee on 27 February 2002.

The outstanding issue is therefore what this report contained and how it was used to approve and justify the subsequent and much later early retirement of the Executive Director - in the run up to 31 March 2006.

My review request is for the Council to explain the decision making process fully and properly, and to provide me with a copy of the 2002 Executive Committee report along with any later reports that may have had an impact on this decision.

I do not understand how a decision of a Council Executive Committee can override the rules of the local government superannuation scheme which require employees who are less than 55 years of age to be made redundant before early retirement benefits can be accessed. The normal definition of redundancy is that the post in question is not replaced - yet this post was replaced.

Original FOI Request 4
If so, did the council agree to enhance the Executive Director’s early retirement package and what effect did this have on the officer’s pension benefits?

South Lanarkshire Council’s Answer
Mr Cuthbertson was awarded maximum compensatory added years in line with the pensions regulation. This had the effect of increasing Mr Cuthbertson’s pensionable service by 7 years and 6 days

Review Request (2)
I note the Council’s response, but in my view this is not a full or complete answer because it does make sense in terms of the Local Government Pension Scheme (Scotland) Regulations 1998 - the relevant section of which is reproduced below for easy reference:

Power of employing authority to increase total membership of members leaving employment at or after 50


51.—(1) An employing authority may resolve to increase the total membership of a member who leaves his employment on or after his 50th birthday.

(2) The additional period of membership must not exceed–

(a) the member’s total membership on the date he leaves his employment (“the relevant date”);
(b) the period by which that period falls short of 40 years;
(c) the period by which that period would have been increased if he had continued as an active member until he was 65; or
(d) 6 243/365 years,


whichever is the shortest.

My review request is for South Lanarkshire Council to explain why 7 years and 6 days was added in this when the regulations clearly require an employing authority to choose the shortest (and least expensive) number of added years, which in this case would have been option (d) – i.e. six and two thirds added years.


I look forward to your reply would be grateful if you could respond by e-mail please to:
markirvine@compuserve.com


Mark Irvine

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