Thursday, 5 March 2020
Department of Housing, Planning, and Local Government
Local Authority Members' Remuneration
Section 142 of the Local Government Act 2001 and the Local Authority Members (Gratuity) Regulations 2002 to 2006 provide that, subject to certain conditions, a person with at least 2 years qualifying service who ceases to be an elected member of a local authority is entitled to receive a gratuity payment at, or after, the age of 50. This is regardless of whether the retirement is voluntary, as a result of failure to be re-elected or for any other reason.
Where a person ceases to be a member of a local authority before age 50, the gratuity will fall due to be paid when the former member reaches age 50. The Regulations allow the gratuity to be paid before age 50 where retirement is due to permanent infirmity or where the member dies in office.
In the case of a person who was formerly a member of a former town council but had not yet reached age 50 when town councils were abolished in 2014, the gratuity would become due when that person reaches age 50 and would be payable by the relevant local authority which now has responsibility for the functional area of the former town council.
An elected member's gratuity payment may only be claimed on retirement from the local government system. In the case of a person who was formerly a member of a former town council and has now reached age 50 but has been elected or co-opted and currently serves as a member of another local authority, then the gratuity will not be due until he or she ceases to be an elected member of that local authority.