Councillors say pension deal is 'immoral'

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Friday, March 19, 2010
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This is HullandEastRiding

COUNCILLORS questioning a decision to pay £360,000 into the pension fund of a retiring senior director have branded it "immoral".

The move to agree Sue Lockwood's early retirement, together with the payout, was taken by East Riding Council's cabinet in a behind-closed-doors session on Tuesday.

Ms Lockwood is the local authority's corporate resources director.

Councillors Steve Sloan, John Whittle, Keith Moore, Mark Preston and Pat O'Neil, have signed an official request to get the decision reviewed.

It means the issue will now go before a council scrutiny committee.

In a statement, the group outlined the grounds for issuing a so-called "call-in" request.

It states: "We feel very strongly that in this time of approaching austerity, to augment a pension in this way is, at the very least, immoral – and coming so soon after the wage boost to "retain staff" – smacks of hypocrisy.

"In the current economic climate, and having regard to the fiscal restraints being applied across the board in local government, to add to the pressures on the local government pension scheme at this time is considered inappropriate.

"We believe this item would benefit from further scrutiny by the appropriate committee."

It is understood the item will be treated as confidential and will be dealt with in private.

Although scrutiny committees cannot reverse cabinet decisions they can ask cabinet members to reconsider their position.

The Mail understands 55- year-old Ms Lockwood's departure is being classed as a discretionary employer consent early retirement, rather than one involving health issues, although she is currently on sick leave.

Ms Lockwood's post is expected to be advertised shortly with a similar salary package.

She is the third senior East Riding officer to have been granted discretionary early retirement after receiving large salary increases in late 2008.

A council spokesman said: "We can confirm we have received a call-in request and this is under consideration."

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