Select Committee on Transport, Local Government and the Regions Appendices to the Minutes of Evidence


Appendix

SEVERANCE SCHEME

WALES

  1.  Section 99 of the Local Government Act 2000 amended section 18 of the Local Government and Housing Act 1989, inserting a new subsection 3(A). This enables the Assembly to introduce regulations which will provide for county or county borough councils to determine which members might be entitled to gratuities.

  2.  The Assembly Government intends to bring such regulations before the Assembly, allowing local authorities to operate a severance scheme in 2004. In addition, regulations will be introduced which will make allowances pensionable and such a scheme would not be available to any councillors who had opted to join a pension scheme operated by the authority.

  3.  The severance scheme would be available for one year only and would be available for councillors, aged 60 or over on the day of the 2004 elections, who declared their intention, by the end of February 2003, not to stand for a further term of office from the 2004 elections onwards. (Any revocation of that decision, at any time, would make the individual liable to repay any gratuity received in this scheme). Payment would be made on completion of the councillor's term of office.

  4.  Members would qualify for payment if they had served as a councillor for more than one complete term, including broken service. The maximum amount payable by an authority would be limited to £750 for each complete year of service, subject to a maximum of £15,000.



 
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