The Forum considered a report of the Director of Education and Directorate Finance Lead - Children’s and Schools which discussed the Local Authority’s (LA) intention to implement a single monthly payday for all maintained schools staff that purchase the Local Authority’s Payroll Service.  There had been a historic discrepancy amongst school staff with non-teaching staff being paid on the 15^th of the month and teaching staff being paid on the last working day of the month.  The move would therefore mean that all staff would be paid on the 15^th of the month with the salary paid on a basis of two weeks’ pay in advance and two weeks’ pay in arrears.  It was explained that this was in order to streamline processes, improve the quality of data and provide one deadline to work towards for the Shared Service Centre and for schools. 

Additionally, the Local Authority would also impose a charge to maintained schools on an annual basis in relation to pension administration as well as charging schools in relation to pension fines that are incurred as a result of non-compliance with the Pension scheme.

The report highlighted the number of advantages that the transition to a single payday or all staff would bring to the school:

• This change will affect teaching staff as their payday will be brought forward by moving to mid-month.
• It is a seamless transition for teaching staff as there is no change to personnel numbers, NI, Tax, Pension or their contractual terms and conditions. 
• That is an effective way to streamline financial processes, Shared Service Centre providing school with one costing report and one set of payroll data to reconcile (which can be reconciled earlier).
• One deadline date to submit information to the SSC for additional hours, new starters, movers, leavers etc.
• Monthly payroll summary provided to school prior to BACs which can be checked before salaries are paid, supporting a more efficient way to work. 
• Following the early paydays in July and December, teaching staff do not have to wait six weeks for a payday in August and January. 
• Easier for overall administration, provides schools’ business managers and administration staff capacity to complete other tasks during the month.
• Benefits at the end of the financial year as the school can reconcile payroll before the end of March and have more time to focus on year end tasks. 
• Better quality data and support for statutory compliance.
• Everyone in the organisation will be paid at the same time.

The Forum was invited to note and comment on the changes.  A number of members of the Forum explained that their schools that had implemented the change to a fixed pay day and had found the transition easy to accomplish and recognised the benefits for teachers in being paid their salary on a fixed day (which effectively fell two weeks earlier than in previous arrangements).  Particular emphasis was given to the benefit for teachers no longer having earlier pay days in the months of July and December and the impact of having a longer gap than usual between pay days.  A member also commented that the implementation of a fixed pay day would greatly benefit new qualified teachers who would no longer have to wait until the end of their first month of employment for their first salary instalment.  None of the members that had implemented the fixed pay day reported any difficulties.

Discussions then turned to the introduction of fees for maintained schools in relation to pension administration both on fines relating to non-compliance with the Teachers Pensions Scheme.  The Directorate Finance Lead – Children and Schools advised the Forum that the LA was now under a duty to provide data and information about contributions to the Teachers Pension Scheme on a monthly basis instead of on an annual basis irrespective of whether the school had purchased the Local Authorities Payroll and Pensions Service Level Agreement.  As a result of this increased workload, the Local Authority had decided to impose an annual fee to schools who use payroll providers other than the Local Authority in respect of those statutory reporting arrangements.  She added that other Local Authorities had taken a similar approach.  The Directorate Finance Lead – Children and Schools also asked the Forum to note that the fee that was set out in the report was to be amended to one that was proportionate to the size of the school and the Authority intended to confirm the amended fee as soon as possible.

A member commented that the notice of the intention to implement fees could have been longer to allow schools to the opportunity to purchase the LA’s payroll services.

The Directorate Finance Lead – Children and Schools also explained with regard to pensions administration, that where an error is made about pension calculations a charge is made to the LA in respect of the employers’ contribution.  She explained that in future that fee will be passed on the relevant school however where a school is has become an Academy the process remained yet to be clarified with Education Skills and Funding Agency in terms of how those fees may be appropriately passed on.

For Academies

Decision

To note the intention to implement a

• Single payday implementation for schools.
• Annual charge for pension administrative fee to maintained schools.
• Costs or fines as a result of non-compliance to the Pension scheme requirements will be passed on to the school or successor academy.