Spending Public Money
Here's a letter of complaint regarding the use of public money in South Lanarkshire Council.
I've also submitted a separate FOI request on this subject - because South Lanarkshire Council - in my experience - is seldom willing to disclose such information - readily and willingly.
Archie Strang
Chief Executive
South Lanarkshire Council
BY E-MAIL
Dear Mr Strang
Executive Director of Corporate Services – Early Access to Pension Benefits
I would like to raise a complaint with South Lanarkshire Council over the circumstances surrounding the departure of its former Executive Director of Corporate Services, Alan Cuthbertson, who was allowed to access his pension early from 31 March 2006.
As you know, I have uncovered the following facts from the council following a FOISA request in August 2010:
1 The employment of the Executive Director, Corporate Resources, Mr Alan Cuthbertson was terminated on conclusion of his fixed term contract with access to pension benefits in line with the Local Government Pension Scheme (Scotland) Regulations 1998 as amended.
2 Mr Cuthbertson was 51 years of age on the date his employment terminated.
3 The principle of fixed term contracts for Executive Directors was approved by the Executive Committee on 27 February 2002 and Alan Cuthbertson's employment was terminated on 31 March 2006.
4 Mr Cuthbertson was awarded maximum compensatory added years in line with the pension regulations. This had the effect of increasing Mr Cuthbertson's pensionable service by 7 years and 6 days.
5 The additional payment to the Local Government Pension Scheme was £291,990 and was the result of South Lanarkshire Council allowing such a senior official to retire so early.
As far as I can tell, South Lanarkshire Council has spent over £1 million of public money in allowing this official to effectively retire at the age of 51 – i.e. £291,990 in additional pension benefits plus the extra cost of replacing the post for 7 years and 6 days which must have come to hundreds of thousands of pounds (@£120,000 a year = £840,000+).
I cannot see how South Lanarkshire Council can justify using public money in this way and, as you know, I invited you, as Chief Executive and Head of the Paid Service, to clarify the position before submitting a FOISA appeal to the Scottish Information Commissioner – in an effort to get to the bottom of what has been going on.
My concern is that some of these matters go beyond the scope of the Scottish Information Commissioner to take corrective action. I am, therefore, considering a formal complaint to the Accounts Commission for Scotland as well as the Pensions Regulator. In summary I have the following concerns about South Lanarkshire Council’s use of public funds:
a) The end of a fixed-term contract is not a valid reason to allow a senior official to retire early, so how does the council justify spending £291,990 of taxpayers’ money on this particular individual?
b) The Local Government Pension Scheme Regulations appear to have been breached in relation to the award of an additional 7 years and 6 days service – when the regulations read as follows:
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.
c) The Local Government Pension Scheme Regulations also require that a person under 55 years of age can access their pension benefits early – only if their post is being made redundant. In this case the Executive Director’s post was replaced, so how can South Lanarkshire Council justify its actions?
d) In replacing the post, South Lanarkshire Council incurred the additional cost of an extra salary for 7 years and 6 days which must have come to hundreds of thousands of pounds, i.e. an extra salary of @ £120,000 for 7 years and 6 days. How does South Lanarkshire Council justify this use of public money?
Mark Irvine
I've also submitted a separate FOI request on this subject - because South Lanarkshire Council - in my experience - is seldom willing to disclose such information - readily and willingly.
Archie Strang
Chief Executive
South Lanarkshire Council
BY E-MAIL
Dear Mr Strang
Executive Director of Corporate Services – Early Access to Pension Benefits
I would like to raise a complaint with South Lanarkshire Council over the circumstances surrounding the departure of its former Executive Director of Corporate Services, Alan Cuthbertson, who was allowed to access his pension early from 31 March 2006.
As you know, I have uncovered the following facts from the council following a FOISA request in August 2010:
1 The employment of the Executive Director, Corporate Resources, Mr Alan Cuthbertson was terminated on conclusion of his fixed term contract with access to pension benefits in line with the Local Government Pension Scheme (Scotland) Regulations 1998 as amended.
2 Mr Cuthbertson was 51 years of age on the date his employment terminated.
3 The principle of fixed term contracts for Executive Directors was approved by the Executive Committee on 27 February 2002 and Alan Cuthbertson's employment was terminated on 31 March 2006.
4 Mr Cuthbertson was awarded maximum compensatory added years in line with the pension regulations. This had the effect of increasing Mr Cuthbertson's pensionable service by 7 years and 6 days.
5 The additional payment to the Local Government Pension Scheme was £291,990 and was the result of South Lanarkshire Council allowing such a senior official to retire so early.
As far as I can tell, South Lanarkshire Council has spent over £1 million of public money in allowing this official to effectively retire at the age of 51 – i.e. £291,990 in additional pension benefits plus the extra cost of replacing the post for 7 years and 6 days which must have come to hundreds of thousands of pounds (@£120,000 a year = £840,000+).
I cannot see how South Lanarkshire Council can justify using public money in this way and, as you know, I invited you, as Chief Executive and Head of the Paid Service, to clarify the position before submitting a FOISA appeal to the Scottish Information Commissioner – in an effort to get to the bottom of what has been going on.
My concern is that some of these matters go beyond the scope of the Scottish Information Commissioner to take corrective action. I am, therefore, considering a formal complaint to the Accounts Commission for Scotland as well as the Pensions Regulator. In summary I have the following concerns about South Lanarkshire Council’s use of public funds:
a) The end of a fixed-term contract is not a valid reason to allow a senior official to retire early, so how does the council justify spending £291,990 of taxpayers’ money on this particular individual?
b) The Local Government Pension Scheme Regulations appear to have been breached in relation to the award of an additional 7 years and 6 days service – when the regulations read as follows:
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.
c) The Local Government Pension Scheme Regulations also require that a person under 55 years of age can access their pension benefits early – only if their post is being made redundant. In this case the Executive Director’s post was replaced, so how can South Lanarkshire Council justify its actions?
d) In replacing the post, South Lanarkshire Council incurred the additional cost of an extra salary for 7 years and 6 days which must have come to hundreds of thousands of pounds, i.e. an extra salary of @ £120,000 for 7 years and 6 days. How does South Lanarkshire Council justify this use of public money?
Mark Irvine
