L.G.S.S. Consultation Document Proposal for Pension Services Staffing changes at Shire Hall & John Dryden House (LGSS Finance Directorate) This consultation covers employees in LGSS from CCC only. Background and context LGSS is now in its third year of operation and continues to support its founding councils and partners in responding to the increasing number of challenges faced including significant budget pressures, and the need to work more efficiently. The LGSS Management team also has a responsibility to ensure its structure going forward is fit for purpose and supports the LGSS design principles and strategic outcomes. LGSS has a target to achieve efficiencies and reduce its budget by £3.0m for 2014/15 The LGSS business case agreed by Northamptonshire and Cambridgeshire County Councils clearly identifies efficiencies that are required on a year by year basis as well as sets out additional income targets to be met. The funding for LGSS reduces each financial year as part of this business case. The reduction in funding will be met through the on boarding of additional clients and therefore increased income, and importantly efficiencies in working practices and posts within the existing workforce and structures Pension Services undertook a significant restructuring in 2013/14 to redesign its service to meet the key design principles set out below, deliver efficiencies and co-locate onto one site at Northampton. However, after consultation it was decided to leave a satellite team at the Cambridgeshire office. The reason being the retention of experienced staff and providing support to employers and members on a ‘pop-in’ basis. Unfortunately, the principle of retaining key staff has failed and it is also proving difficult to manage an administration team at Cambridge when the remaining 4 teams are located in Northampton. In attracting new customers it is evident that we need to develop centres of excellence, which is also a design principle of LGSS. Therefore the time is now right to centre all the administration processes in one place and transfer the remaining team to Northampton. Following the consultation issued by DWP regarding record keeping which requires a greater level of accuracy with our data, having teams in two places makes this task more difficult and complex. The consultation is therefore going to address the issue of the remaining staff based at Cambridgeshire relocating to Northamptonshire and the provision of hot-desk facilities remaining at Cambridge for the Employers Team and Senior Management. Design Principles Integration of services, policies, practices and process across its teams and offices through the development of centres of excellence and shared resources. Reviewing transactional functions to establish a single location to enable integration and efficiencies, and developing a plan to realise a single location. Reviewing its technologies to enable a single point of systems support and I.T. Modernising and harmonising the professional services approaches in all LGSS offices to ensure a consistent and high level of professional support is provided. Establishing resources to ensure LGSS is supported in its business development and internal professional advice. Proposal Rationale The proposal addresses the inefficiencies of the split site and provides a future proofing for growth of LGSS Pension Services. The 2014 Public Sector pension change agenda will see the Pensions Regulator having a direct responsibility for Local Government Pensions for the first time supported by new compliance and information requirements. It is vital therefore that the service is structured and focused not only for LGSS requirements, but also to accommodate the 2014 Public Sector Pensions changes. LGSS is well placed in the Local Government Pensions community, as the national agenda is for collaboration between funds to drive out efficiencies and improve service standards, directly and specifically addressing the new Public Sector Pensions agenda, thus meeting the design principles of LGSS. The National agenda, led by Brandon Lewis, Minister for Local Government is attracting much media coverage. LGSS Pension Services has a strong positive reputation within the Local Government arena, with its shared service culture; indeed Brandon Lewis has referenced LGSS as a model of good practice at national pension conferences. L.G.S.S. Pension Services Review January 2014 Page 1 of 3 LGSS Pension Services has to ensure its costs are as efficient as possible as scheme collaboration becomes higher on the national agenda, this has accelerated since the last reconfiguration. In order to drive down our costs/increase productivity the one site philosophy which was accepted in the last consultation has become more essential. Currently we are in discussion with other Pension Funds to deliver joint services which if successful will be based in Northampton. Numbers and descriptions of employees affected Team Leader 1 Pension Officer 6 Pension Clerk 1 By transferring the above roles to Northampton it is estimated that savings totalling £65,000 will accrue. For example this could be secured by the non filling of those posts where staff do not wish to transfer to Northampton the effect of which will be subject to review after 6 months. However, should this prove not to be practical equivalent savings can be found elsewhere. All staff affected will be offered the opportunity to transfer to Northampton as a number already have following the last reconfiguration. This is not a TUPE transfer and is a straight lift of staff from CCC to NCC. Voluntary redundancy/ retirement When considering potential redundancies it is both Council’s policies to use voluntary means wherever possible to reduce the size of the workforce rather than compulsory redundancy. The LGSS Board will consider expressions of interest in voluntary redundancy and retirement further details regarding this process will be issued during the consultation process. Any employee wishing to apply for Voluntary Redundancy should understand that there is no guarantee that this will be agreed or any automatic entitlement to release this will be made on the basis of business continuity / skill retention and affordability grounds. Management reserve the right to decline applications and as such employees have no right to appeal. Trade Union consultation Formal Trade Union consultation on these proposals started on 7th April 2014 The union representatives are being consulted on the proposed structures and will be available to support their union members. The detailed proposals will be considered at the LGSS consultation forum. The consultation will last for a minimum of 30 days. All formal proposals will go through the members of the LGSS Consultative Forum only, local representatives are there to discuss issues and inform proposals with employees and managers. If you wish to speak to your Trade Union you should contact your local representative in the first instance. If you do not know the name of your local representative you should contact your local branch official. Details are below: Trade Union Unison Contact Rob Turner Telephone 01223 717075 GMB Cambridge Unite Kevin Roberts 01223 458208 07828 625343 01223 353048 Brian Smith e-mail robert.turner@cambridgeshire.gov.uk gmb@cambridge.gov.uk brian.smith@unitetheunion.org Timescales There will be a minimum of a 30 day consultation process, and it is anticipated that consultation will end no earlier than 14th May 2014. As this is a meaningful consultation process, individuals will need to understand the full impact of the structure proposals, and have time to consider the proposal detail, therefore consultation will not close until such time that this requirement has been satisfied, which in exceptional circumstances may mean that the consultation period is extended beyond the 30 days. Any extension will be agreed as part of the LGSS consultation forum. L.G.S.S. Pension Services Review January 2014 Page 2 of 3 Key Dates: LGSS Joint Consultation: 7th April 2014 Brief Team: w/c 7th April 2014 Commence consultation: 14th April 2014 End of consultation: 14th May 2014 At Risk process: w/c 21st April 2014 Redundancy notice letters issued: w/c 26th May 2014 Implementation of new structures: June 2014 onwards Further information In the first instance if you need further information on these proposals you should contact Akhtar Pepper, LGSS Pension Services Operations & Technical Manager, on 01604 367493 or apepper@northamptonshire.gov.uk Alternatively, you may contact Manjit Sohal, Senior HR & Change Advisor, on 01604 366039 or msohal@northamptonshire.gov.uk L.G.S.S. Pension Services Review January 2014 Page 3 of 3