Superannuation - Carers' Policy

Minutes:

The Committee considered whether it would be appropriate to amend the Carers’ Policy in respect of superannuation payments.

 

In May 2021, the Committee had approved a new Carers’ Policy to support employees who were Carers so that they could more easily combine this role with their employment role. It had also been agreed to consider an amendment to the policy proposed by Councillor Robert King in respect of superannuation payments based on an assessment of costs over a six month period.  During this period no Carers had altered their hours and therefore instead an assessment of potential costs to the Council for employees at Grade 7, Grade 10 and SMA level for a 6 month and for a 12 month period had been considered by the Human Resources Member Working Party (HRMWP) at its meeting in March. It had been agreed at that Working Party meeting to propose an amendment to this policy to the Committee based on this exercise.

 

The purpose of the proposed amendment from the HRMWP was to ensure that an

employee did not lose out on pension benefit as a result of reducing their hours on a

temporary basis due to being a Carer. This protection was proposed for a 6 month period with any further extension being at the discretion of the employee’s line manager.

 

The Committee noted the estimated costs to the Council that had been considered by the HRMWP.  These costs would already be budgeted for on the assumption that the post was operating at full time so there would not be any additional budgetary consequences unless the Council employed a temporary member of staff to cover the reduced hours and they too wished to join the pension scheme.

 

Surrey Pensions who administered the pensions of staff at Runnymede Borough Council had advised that no other authorities had proposed to make this provision for their employees. They had also advised that although it was possible for an employer to pay additional contributions for an employee for a period of time, an Additional Pension contribution contract in respect of that employee would be required and that under the Pension Regulations an employee could only make additional contributions for themselves for a minimum of one year. Therefore if the Committee wished to change the Policy on the basis suggested by the HRMWP, where the employee made matching contributions, then Runnymede would need to support the difference for the employer’s side contribution for one year and not six months.  Accordingly, officers had produced revised wording to reflect supporting the difference for one year.

 

The Committee noted that members of all the political groups on the HRMWP had

supported the change to the Policy and the Committee approved the revised wording to reflect supporting the difference for one year subject to the addition of a sentence stating that any extension of this arrangement would be at the discretion of the Corporate Head of Human Resources and Organisational Development. The HRMWP had recommended that any extension of the arrangement would be at the discretion of the employee’s manager but the Committee agreed that it would be appropriate for any extension to be at the discretion of the Corporate Head of Human Resources and Organisational Development to provide a consistent approach across the organisation.        

 

Resolved that –

 

paragraph 7 of the Carers’ Policy be amended to read as follows:-

 

“Where an employee reduces their hours as a consequence of being a Carer on either a temporary or a permanent basis, the difference between the employers’ superannuation contribution on a full-time salary and on the reduced hours will be paid by the Council for the first year subject to the employee also bearing the difference in employee contribution cost for a minimum of one year (which is required under the provisions of the Local Government Pension Scheme). Any extension of this arrangement for a further year will be at the discretion of the Corporate Head of Human Resources and Organisational Development.”

Supporting documents: