Search

Redbridge Council employees will not be automatically enrolled into pension scheme until 2017

14:03 14 February 2013

The borough will delay enrolling council employees into an automatic pension scheme for another four years, in a move that has been branded as showing “a lack of leadership”.

The decision to delay automatic enrolment into a workplace pension for council workers until October 2017 was made by cabinet at Redbridge Town Hall, High Road, Ilford on Tuesday.

The council was due to enrol existing eligible job holders on to the scheme by March 1, as part of national pension reforms.

Labour Cllr Wes Streeting said: “I have considered this scheme carefully and I think the council have shown a distinct lack of leadership in putting off automatic enrolment.

“The intention behind the Pensions Act 2008, was to reinforce the importance of pensions and paying into the plan by employees. I think the council have set a worrying precedence and have shown a lack of care for staff.”

It is difficult to predict how many employees would stay on the scheme if automatically enrolled, but if 10 per cent of the eligible 1,401 employees stayed on it, it would cost the council almost £600,000 a year.

Cllr Streeting added: “The cabinet appears to be ducking the decision and leaving the problem to others. I would like them to delay the matter until next year instead.”

Employees would be able to “opt out” of paying into the plan, but the council would then be required to enrol them again every three years.

Cllr Ian Bond said: “There is a big difference between us and the private sector; pensions are very expensive. I think the deferral of the decision will be mirrored by the majority across London.

“It’s always been the case that new employees joining Redbridge are automatically joined to the pension scheme, and then if they wish to opt out they have to leave. The people who might be affected by auto-enrolment are almost all people who will have actively decided to leave the scheme at some point in the past, and they can rejoin at any time.”

The auto enrolment would also require “significant additional work” for the human resources, including systems changes, making the payroll deductions and administering joiners and leavers to the scheme.

Cllr Keith Prince suggested that Cllr Streeting’s remarks showed “a lack of understanding” of the scheme and for the state of local council’s finances.

All concil employees, including teachers, would be affected.

0 comments

Latest Ilford News Stories

14:45
Chigwell Road, South Woodford. Picture: Google Street View

Police are appealing for witnesses after a woman died following a car crash this morning.

12:00
Hugh Noble, left, plants tree at South West Essex and Settlement Reform Synagogue

A synagogue has been celebrating its 60th anniversary with one of its founders planting a tree at its grounds.

A therapeutic garden is one of three environmental projects in the borough set to benefit from Tesco’s Bags of Help scheme.

Yesterday, 17:31
Cranbrook School in Mansfield Road, Ilford could close by July.

Parents were left shaking in anger after they received an email informing them their children’s school could close by July.

Most read news

HOT JOBS

Show Job Lists

Competitions

Champagne experience

This Valentine’s Day, the Coca-Cola London Eye is the perfect destination for lovebirds, offering a range of romantic experiences from Friday 12th February - Sunday 14th February 2016.

Sony Smart Ultra HD 55'' LED TV

Enjoy the ultimate entertainment experience in your living room with the Sony Smart Ultra 55’’ LED TV. Be the envy of all your friends with this huge TV- you can change your living room into your own cinema! Get the boys around to watch the football or get the girls around to watch the DVD of 50 Shades.. this is a prize that everyone would enjoy! Stand a chance to upgrade your current entertainment system by wining this fantastic prize.

Digital Edition

cover

Enjoy the
Ilford Recorder
e-edition today

Subscribe