Contributions to a pension scheme for council employees cost every man, woman and child in North Lincolnshire £104 last year, it has been revealed.
Now the authority has been called on to campaign for a reform of the pension fund and to stop paying extra cash to staff who retire early.Figures released by the Taxpayers' Alliance (TPA) show the cost to North Lincolnshire's 159,000 residents soared last year by 18.4 per cent to almost £16.5-million - or £104 per head of the population.
But council chiefs insisted pensions offset earnings for many employees who would be paid more in the private sector.
In North Lincolnshire, the level of employer contribution in 2006/7 was £16,479,000 compared to £13,920,000 the previous year.
Andrew Allum, TPA chairman, said it was unacceptable so much money was being spent on 'gold-plated council pensions'.
The North Lincolnshire increase last year was almost double that of neighbouring North East Lincolnshire, where taxpayers saw a 9.6 per cent rise to £13,717,000.
Mr Allum said: "The overall terms of the Local Government Pension Scheme are set by national government which is why we are urging a radical reform.
"That doesn't absolve councils from blame however, as each has the opportunity to reign in their payments and to lobby the Government for reform.
"With pension costs jumping 13 per cent in one year, the problem is clearly getting worse and requires urgent attention."
As well as campaigning for reform, the Alliance wants councils like North Lincolnshire to cease the payment of added years' benefit to employees who take early retirement.
The figures also show spending in Hull on pensions increased last year by 19.9 per cent to £35,022,000 and in West Lindsey by 5.6 per cent to £1,185,000.
The data does not include contributions made by employees themselves and employer contributions to the pensions of teachers.
Council leader Mark Kirk was unavailable for comment as was Tory leader Liz Redfern.
A council spokeswoman said the pension scheme was part of a package of pay given to employees who worked hard in the public interest.
She said: "Many earn less than they could if they worked in the private sector and the scheme off-sets this to an extent.
"Local government employees contribute to the cost of their pension. From April 1 the rates will be increased from 5.5 to 7.5 per cent of their pay, depending on their salary level.
"The Government has made changes to the scheme to help limit its cost, with changes being made to the benefits staff are entitled to.
"Overall the council is satisfied the scheme represents a fair and proper part of the remuneration package for its employees."
This chicken will take a long time to come home to roost. With life expectancy on the increase, paying pensions out for significantly longer than was anticipated just 10 years ago, will mean Government will need to take drastic action in terms of public sector pensions.
A 55 year old male, now has nearly a 1-in-4 chance of living to age 95. Yes, 95! And for every day you survive, your life expectancy has increased by 5 hours.
Mike Jones
Director
MyCompanyPension.co.uk
Posted by: Mike Jones | Friday, February 29, 2008 at 03:51 PM