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Fife Council spends over £1m on retirement packages for three people

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Cash-strapped Fife Council has been accused of throwing money away on lavish retirement packages for highly-paid staff.

Figures show that two retiring employees shared £513,000 last year.

In 2014-15 packages for three people retiring early came to just over £1million.

Conservative group leader Councillor Dave Dempsey said it was illogical that departing employees could be awarded such “spectacular top-ups” while the council had considered limiting school dinner menus to save £142,000.

He said: “While it’s both right and important that Fife Council treats its staff well, this goes far beyond well.

“These aren’t low paid staff.

“They’re highly paid individuals who already have the sort of pension provision that most folk can only dream of.”

Exit packages include redundancy payments, compensatory lump sumps and additional pension strain and costs.

Presenting a motion to the council, Mr Dempsey demanded action to limit the “large” figures being paid to a wealthy few in lump sums and pension enhancements.

However, councillors voted to continue the current level of discretionary benefits while a review was conducted at national level.

The UK government has proposed a cap on public sector exit payments of £95,000 and the Scottish Government is to conduct a consultation.

Cllr Dave Dempsey
Cllr Dave Dempsey

Mr Dempsey said the government review was quoted as an excuse for doing nothing and said: “That review could be years away.

“In the meantime, there’s no money to fill potholes, cut grass, trim trees, spruce up playparks and all the other things that the public, who in the end pay for all this, want done.”

The council’s discretionary benefits policy aims to ensure packages are sufficiently attractive to ensure that workforce reductions are consensual as far as possible and cut down on compulsory redundancies.

Executive spokesperson for finance and corporate services, Councillor Altany Craik, said the policy needed consideration but accused Mr Dempsey of presenting a “pointless” motion which offered no solution.

He said: “This is an issue, it’s not a massive issue, but it is an issue and there is legislation in train to deal with it.

“I’m not defending these payments, but they are the exceptions at the far end of the scale.

“Most people leaving the organisation don’t go with pockets full of cash, most are normal folk who have done their job and they have to make this last.

“Cllr Dempsey is the chair of the finance scrutiny committee and it’s irresponsible to paint this picture of profligate waste.”

He suggested Mr Dempsey should scrutinise the policy and come up with a solution instead of presenting motions he likened to “abject rubbish” seen during Brexit campaigning.

He said: “Terms and conditions of employees’ contracts are not something we can just change without talking to stakeholders, employees, unions.

“If he wants us to address this seriously this isn’t the way to do it and he has been in local government long enough to know this.”