Pension complexities put strain on labour relations in Doncaster
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The GMB union has accused Doncaster City Council of a “pension rip-off", launching a campaign for refunds. The council has denied that workers are paying more than necessary into the Local Government Pension Scheme and said it is committed to clear communication and engagement.
The union claimed “hundreds of workers” including street cleaners, gritters and social carers are contributing more than necessary into their pension fund through having their pensionable overtime payments calculated monthly rather than annually.
GMB organiser Sarah Barnes said: "This is another example of Doncaster Council being out of step with the national picture. GMB members have had enough of [having] their pensions contributions being ripped off. It’s time the leadership [stepped] in to correct this injustice."
However, the council said it has worked with unions and South Yorkshire Pensions Authority to bring in an end-of-year reconciliation process to ensure contributions match annual earnings, with adjustment or refunds made where needed.
“We recognise these payroll adjustments can be complex and remain committed to clear communication with staff and constructive engagement with trade unions,” said Debbie Hogg, executive director of corporate resources.
Hogg explained that employers are required to reassess the appropriate band and rate each April, in the pay period in which 1 April falls but may also review the band where there is a change in employment, or a material change which affects the member’s pensionable pay in the course of a financial year.
“The City of Doncaster Council pension contributions are assessed in line with these rules based on pay in each period, meaning they can vary where earnings fluctuate and this is deemed a material change. This is an established approach in line with pension regulations,” she said.
“Contributions reflect actual earnings at the time they are paid and are intended to align with total pensionable pay over the year. All contributions are paid into the LGPS in line with national arrangements, from which individual pension benefits are calculated, which is no different to the rest of the employers who pay the contributions to SYPA.”
