Councillor raises concerns about pension liabilities
A COUNCILLOR has raised concerns about the mounting pension liabilities of the authority on which he sits.
Graham Simmonds, an Independent member of Caerphilly council, says he is worried by figures showing that since 2013-14 the authority’s total pension liability has risen from £280m to £503m in 2017-18.
He said: “The pension liability is now more than half a billion pounds – a staggering amount. Since being re-elected to the council in May last year, I have been trying to get a coherent explanation for the increase without success.
“Obviously the increased liability has to be paid for, and I am worried that it is going to impact on public services. The council’s budget is very tight and further spending cuts are being considered.
“I think people need to understand that the pension liability is as high as it is, and that the council has a duty to be clear about the implications.”
In 2013-14 Caerphilly’s pension liability was £280m, in 2014-15 £387m, in 2015-16 £429m and by 2016-17 it was £501m. In 2017-18 it rose to £503m.
A spokesman for Caerphilly council said: “We have provided Cllr Simmonds with numerous responses on this matter including questions raised by him at meetings of the audit committee and full council.
“Furthermore, Cllr Simmonds has also received a detailed letter from the Greater Gwent (Torfaen) Pension Fund fully addressing the concerns that he has raised.
“The council’s pension liability is typical for an organisation of this size and is in line with other local authorities in Gwent.
“It is important to note that our accounts are thoroughly scrutinised by full council and our external auditors and are published annually in accordance with statutory requirements.”
A note to the council’s accounts states: “The deficit on the [pension] scheme will be made good by increased contributions over the remaining working life of employees, as assessed by the scheme actuary.”
In the year to March 31, 2018, the council’s contributions to the scheme were expected to total £22m.
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