Issue - meetings

Cabinet considered a report, introduced by the Leader of the Council, which set out the current legislation and how it applied to the Council and the options to defer auto-enrolment.

RESOLVED:

1. That approval be given to the delay of the auto-enrolment for existing job holders, until October 2017.

2. That the postponement of auto-enrolment for all newly appointed eligible job holders with a short term contract of less than three months for a period of three months or until the expiration of the contract if sooner, be approved.

3. That it be noted that auto-enrolment would apply to all other newly appointed eligible job holders with effect from 1 March 2013.

Alternative Options Considered

Consideration was initially given to postponing the date on which auto-enrolment obligations would otherwise apply from 1 March 2013 to 1 June 2013 to bed-in a SAP Payroll upgrade for auto-enrolment.

The early application of auto-enrolment across the whole workforce was initially considered on the basis that operationally it would be less administratively complex and simpler for employees to understand. It also underlined the Council’s commitment to the benefits of membership of the Local Government Pension Scheme and the benefits which both the Council as an employer and the employees enjoy from participation in the scheme. However, the budgetary implications outweighed these considerations.

Reasons for Decision

The decision to delay auto-enrolment to 1 October 2017 will alleviate an estimated increase in employer contributions amounting to £3m in 2013/14 and each subsequent year thereafter until 2017/18.

Postponing the auto-enrolment of casual employees will remove the requirement for an alternative scheme to be provided for them.