New Forest District Council Pay Policy Statement - Financial year 2024-25

Background

1. The purpose of this Pay Policy Statement ("Pay Statement") is to set out New Forest District Council's pay policies relating to its workforce for the financial year 2024-25, including the remuneration of its Chief Officers and that of its lowest paid employees. Once the Pay Award for 2024-25 has been agreed the Pay levels in this document will be amended accordingly.

2. The functions of appointment, dismissal and related matters for all employees below Chief Officer Level shall be dealt with by the Chief Executive and Strategic Directors, or such other employees as may be authorised. Standing Orders for General Procedures deal with procedures for appointing and dismissing employees at Chief Officer Level.

3. With the exception of apprentices on the National Minimum Wage, pay for all staff, including Chief Officers, is formally discussed and consulted upon at the Employee Side Liaison Panel before recommendations are taken forward to the HR Committee who will make recommendations to Council.

4. For the purposes of this Pay Statement and in accordance with the Localism Act 2011 ("Localism Act"), staff employed by the Council have been separated into two groups: (a) Chief Officers as defined by the Localism Act (b) Employees who are not Chief Officers as defined by the Localism Act

5. An "employee who is not a Chief Officer" refers to all staff that are not covered within the "Chief Officer" group as outlined below. This includes the "lowest paid employees". In the context of the Council, the "lowest paid employees" are those employed at Band 1 on the District Council's pay structure (this is appended as Appendix 2 to the report).

6. Section 43(2) of the Localism Act defines Chief Officers for the purposes of the Localism Act.

The following roles within the Council fall within the definition "Chief Officers": -

(a) Head of Paid Service (Chief Executive)

(b) Monitoring Officer

(c) Section 151 (Chief Finance) Officer

(d) Non-Statutory Chief Officers (Strategic Directors)

(e) Officers reporting directly to those officers falling within (a), (b), (c) and (d) above (Deputy Monitoring Officer and Deputy S151 Chief Finance Officer)

Chief Officers as defined by the Localism Act 2011 

7. The Chief Executive's pay is set in comparison with other district councils. The Chief Officers below the Chief Executive are paid on Band 13 of the Council's pay structure (the Band for each role is determined by a consistent job evaluation process), Chief Officer current salaries are outlined as follows:

8. The Head of Paid Service salary range is detailed below;

CX4 and CX5 are available for exceptional performance. 

9.    The Council has a duty to appoint a Returning Officer responsible for local government elections and has decided that this role be carried out by the Chief Executive. The Returning Officer fees are regarded as a special responsibility payment in relation to independent duties carried out

10.    The fees and charges for European, UK Parliamentary and Police Commissioner elections and National Referendums are set by external bodies. The scale of fees and expenses for County, District, Parish and Town Council elections will be set in partnership with the County Council and other Hampshire local authorities to ensure uniformity and will be submitted to General Purposes and Licensing Committee.

11.    The Strategic Directors 1 salary range (Band 13) is detailed below:

77 and 78 are available for exceptional performance.

12. The Assistant Directors salary range (Band 12) is detailed below:

69 and 70 are available for exceptional performance. 

This band currently contains the Section 151 Officer and Monitoring Officer. The Council retains the right to amend the placement of these posts in line with structural changes, as required from time to time.

13. The Service Managers salary range (Band 11) is detailed below.

14.  The salary range for officers in Band 10 is detailed below; 

Note: 56 and 57 are available for exceptional performance.

15. The salary range for officers in Band 9 is detailed below. 

Note: 50 and 51 are available for exceptional performance.

16. The salary range for officers on Band 8 is detailed below. 

43 is available for exceptional performance 

This band currently contains the Deputy Section 151 Officer and Deputy Monitoring Officer. The Council retains the right to amend the placement of these posts in line with structural changes, as required from time to time.

17. Not all employees placed in bands 8 and 9 meet the definition of a 'Chief Officer' as defined by the Localism Act 2011, but a small number of officers in these bands do report directly to a Chief Officer according to definitions a, b, c and d in paragraph 6, hence these bands being included above.

18.    The Council reviews its terms and conditions and pay levels regularly. The Strategic Director pay was reviewed in 2022.
19.    Other changes to pay were implemented in October 2022. This included the raised adjustment of Band 1 pay, the removal of bottom points from bands 2,5, 6, 7 and 8 and the increase by one Spinal Column points to Band 4 and 5. Band 12 was also repositioned within the salary structure. Performance points were introduced into Bands 7 and 8 for exceptional performance.
20.    Pay awards are considered annually for all staff including Chief Officers. At the Council, Chief Officers for the purpose of pay award implementation are regarded as the Strategic Directors. The outcome of the national consultations by the Local Government Employers in negotiation with the Trade Unions is applied unless this distorts the councils local pay structure.
21.    The Chief Executive, Chief Officers' and Service Managers' performance and pay progression is reviewed annually on the achievement of clear organisational objectives. Incremental progression does not apply to these roles. The Chief Executives' annual review is undertaken by a member panel (comprising of the Leader of the Council, plus three other Portfolio Holders to be determined by the Leader).
22.    The Council recognises that Chief Officers sometimes incur necessary expenditure in carrying out their responsibilities e.g. travel costs. Chief Officers will be reimbursed for reasonable expenses incurred on council business in accordance with local Terms and Conditions
23.    Chief Officers as a result of their employment are eligible to join the Local Government Pension Scheme in the same way as other employees. The pension's policy statement is appended as item 2 to this statement applies to all employees including chief officers.
24.    All employees including Chief Officers with more than 2 years continuous service will be entitled to a redundancy payment. If employees are aged at least 55 they are also automatically entitled to the immediate payment of pension benefits if they are retired on the grounds of redundancy. The redundancy payments are based on actual weekly pay. The number of weeks individuals are entitled to is based on the statutory redundancy grid which provides for a maximum of 30 weeks. A multiplier of 1.5 is used to support efficient organisational change. The Council scheme therefore provides for an entitlement of up to a maximum of 45 weeks based on length of service and age. The Council operates one redundancy scheme for both voluntary and compulsory redundancies. All redundancies are subject to a full Business case which requires a maximum financial payback of 3 years.
25.    The Council practice is not to re-employ Chief Officers who have received a redundancy or severance package on leaving the council. any request to do so would require specific approval from the Chief Executive and Leader of the Council. If it relates to the appointment of a Chief Executive then this needs to have approval through full council.
26.    In accordance with the Code of Recommended Practice for Local Authorities on Data Transparency, pay and benefits information for staff paid over £58,200 are published. This information is contained on 'Transparency and Open Government' pages on the Council's external website.

Employees who are not Chief Officers as defined by the Localism Act

27.    These employees are all paid on the Council's pay structure on Bands 1-9. Each employee will be on one of the 9 Bands based on the job evaluation of their role. Each Band consists of between 1 and 6 spinal points. Pay progression within the Band is subject always to good performance.
28.    Each "lowest paid employee" is paid within the salary range for Band 1. All other employees are paid within the salary range for the Band of their role i.e. (2-9). In very exceptional cases individuals are paid a pay supplement. Bands 7 to 9 include Performance Points which can be used for exceptional performance.
29.    Employees new to the Council will normally be appointed to the first spinal point of the salary range for their Band. Where the candidate's current employment package would make the first spinal point of the salary range unattractive (and this can be demonstrated by the applicant in relation to current earnings) or where the employee already operates at a level commensurate with a higher salary, a different spinal point in starting salary may be considered by the recruiting manager. This will be within the salary range for the Band. The candidate's level of skill and experience should be consistent with that of other employees in a similar position on the salary range.
30.    Employees' performance during the year is reviewed within the Council's performance management arrangements and pay progression within the Band is subject always to good performance.
31.    Pay awards are considered annually for staff. For all staff up to and including the Chief Executive the outcome of the national consultations by the Local Government Employers in negotiation with the Trades Unions is applied.
32.    The Council believes in rewarding outstanding performance. It operates this through a system of bonus payments which are designed to reward outstanding performance at the time it occurs. The size of the award paid to an employee will be commensurate with the work being rewarded. All bonuses are subject to approval of the relevant Executive Head.
33.    The Council recognises that employees sometimes incur necessary expenditure in carrying out their responsibilities, for example travel costs. Employees will be reimbursed for reasonable expenses incurred on Council business in accordance with the Council's local Terms and Conditions
34.    The Essential User allowance only applies to jobs that are visiting officers or jobs that manage across more than one site (average of 2,500 miles per annum) and agreed by the Service Manager. This should be reviewed regularly to ensure the criteria is still met.
35.    All employees as a result of their employment are eligible to join the Local Government Pension Scheme. Details of the Council's pension policy are appended as item 2 of this Pay Statement
36.    The Council's redundancy scheme is detailed in paragraphs 21 and this applies to all employees
37.   The Council practice is not to re-employ staff who have received a redundancy or severance package on leaving the Council; any request to do so would require specific approval from the appropriate Executive Head.
38.    In accordance with The Local Government Association guidance on the Government's requirement for reporting remuneration relationships (the ratio between the highest paid employee and the median average earnings across the organisation as a multiple). Based on current salaries for 1 st April 2023 this has been calculated as follows:

Pension Policy Statement

Under the Local Government Pension Scheme, the Council is required to publish a written statement of policy in relation to pensions.

Any decision that has a financial impact will be subject to a Business Case, where a payback period of no more than three years, is achievable. The statutory provisions governing exit payments to local government workers are in the process of reform including the Local Government Pension Scheme Regulations.

1. Regulation 16 (2e)(4d) Shared cost additional pension contributions Discretion not exercised. (Decision at Council July 2014)

2. Regulation 30(6) Power to allow flexible retirement Discretion exercised in line with Policy agreed from 1 May 2015 (Decision at Council April 2015)

3. Regulation 30 (8) Waiving of actuarial reductions on compassionate grounds Discretion exercised provided there is no cost to the Council (Decision at Council July 2014)

4. Regulation 31 Power to award additional pension Discretion not exercised. (Decision at Council July 2014)

5. (LGPS Regulations 2014 (Transitional provisions, savings and amendments - paragraph 2 (2) of schedule 2)) - Switching on the 85 year rule Discretion not exercised (Decision at Council July 2014)

6. Regulation B30(2)(5)B30A(3)(5) Post - 31 March 2008 /pre - 1 April 2014 leavers early payment of pension Discretion not exercised (Decision at Council July 2014)

7. Membership aggregation Regulation 22 (7)(b), (8)(b) Discretion not exercised (Decision at Council July 2014)

8. Transfers of Pension Rights (Administration Regulation 100 (6) Discretion not exercised (Decision at Council July 2014) 73

9. Pension Contribution Bands (Regulations 9 and 10 of LGPS Regulations 2013) Discretion is exercised (Decision at Council July 2014) - The Council's policy is to review an employee's contributions band when there is a contractual change to the member's salary or hours at some point during the year, when the change is permanent. Any changes in variable pay (i.e. overtime) will only be reviewed once on 1st April each year.

10. Assumed Pensionable Pay and 'regular lump sum' (regulations 21(4)(a), 21(4)(b) and 21(5) of the LGPS Regulations 2013) Discretion not exercised (Decision at Council July 2014)

11. Election of Early Payment of Benefits The Council's Early Retirement Policy came into effect from 1 July 2009 and applies to all employees at least 55 and over. Early Retirement can only occur in the following circumstances:

REDUNDANCY - for employees where employment is terminated for reasons of redundancy.

EFFICIENCY - for employees where early retirement is in the interests of the efficiency of the service.