Swansea Council’s Chief Executive is to take early retirement as part of the Council’s reductions in management costs.
Paul Smith will leave the authority at the end of March after more than four years in the post.
The decision forms part of the on-going review of the Council’s senior management structure being carried out by the Welsh Local Government Association (WLGA).
The savings generated by Mr Smith’s retirement will contribute to the Council’s four-year plan to reduce management, supervision and administrative costs by £10 million.
The WLGA report, which was approved by Full Council today (March 7), recommended that Mr Smith should retire on the grounds of efficiency, but with no enhancements or redundancy payments.
It said one of the current Corporate Directors should be appointed through an internal process as a fixed-term Chief Executive until four months after the local government elections in May, 2012, when the position will be reviewed.
A fixed-term Chief Executive is expected to be appointed by Full Council on March 17.
The WLGA report stated the proposed reduction from six to five in the Council’s Corporate Management Team (CMT) is “perfectly workable” and there are many examples of an authority of Swansea’s size with that number of CMT members.
The decision is an early outcome of the on-going senior management review, aimed at streamlining the number of posts and reducing costs and further recommendations are expected in the coming months.
The report stated that under the Local Government Pension Scheme Mr Smith is entitled to receive his pension with no actuarial reduction, which also applies to other staff retiring early. The cost to the Council will be £237,693 in order to cover the pension costs.
The report states that due to the reduction in CMT members from six to five, approximately £130,000 annual savings will be achieved, resulting in a pay back period of two years, which is well within the normal requirement of three years.
