Express & Star

Action demanded over Sandwell Council workers not getting pensions due to computer problems

Sandwell unions have warned a six month hold up for retiring local government workers to get their pension is causing "hardship",

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Due to a new computer system being installed which has had several problems there are former council workers who have yet to receive a penny.

The Sandwell Joint Trade and Sandwell Council have written to the West Midlands Pension Fund, which administers the pension, demanding action.

A union spokesman said: "Reflecting the serious delays staff face when accessing their local government pension upon retirement, the Joint Trade Unions and Sandwell Council have sent an unprecedented joint letter to the West Midlands Pension Fund, who administer the local government pension scheme across the region. See letter below.

"Some staff are waiting six months before receiving their pension, which is creating huge hardship issues.These unacceptable delays are due to a new computer system not working. This situation has been ongoing now for 12 months and unfortunately there is no sign that matters will improve soon.

"If you are experiencing such issues, please get in touch so we can forward your details onto our UNISON representatives who sit on the West Midlands Pension Board."

Sandwell Council House

The letter chronicles the problems those waiting for their pensions and reveals workers are delaying retirement due to pensions not being paid.

It states: "We are finding more and more employees are holding off on retirement due to our communication of your delays, or are taking flexible retirement to avoid being without an income, as no one can realistically be without an income for 6-7 months. This then has a corresponding impact on business and workforce planning.

"With delays over a month late for payment of the lump sum, you are paying interest on the sum to the employees of 1% above the Bank of England base rate. Can you confirm how much this has cost the fund so far, as it is the employer that foots the bill for this through our contributions."

The letter added: "We write this letter to express our deepest concerns regarding the need to address these problems quicky, effectively, and will full transparency. We ask for reassurance that the delays will be rectified, communicated to employees and to be provided with a realistic timeline in writing as to when the backlog will be cleared, and normal timescales will be resumed."