Audit, Fraud and Insurances

Teachers Pensions ContributionsSupplier Insurance Cover

Teachers Pension

Employee and Employer Pension should not be paid on the following items:•Unpaid Leave•Supply Hours if the Person is in Full Time Employment (this will change from April 15)

•Part time teaching employment if the teacher already has full time teaching employment (this will change from April 15)

Teachers Pension• Back Pay– Employers Pension is 14.1%– Issues arising with the calculation of back pay, where

in some cases double the employers Pension has been paid

– Example:• In January 2014 as teacher received a backdated pay award.

There gross pay for the month was £3307.09 and pension contributions paid were:

Employee Contributions – £835.51 (25.26% - over by £544.49 Employer Contributions – £1338.71 (40.48% - over by £872.41)

Teachers Pension

Items to highlight to Teaching Staff•If they are receiving a back dated pay award, pension for the previous months should not be recalculated at the new pension rate•Payslips should be checked carefully when in months back pay is awarded.•Pension should not be paid on Unpaid Leave•If your teachers is on a full time contract they should not pay pension on supply hours or additional part time contracts (this will change from 1/4/2015)

Insurance

• Do you carry out the same checks on suppliers who provide activities with pupils as you do for people hiring the School Premises???

This is why its important• In July 2000, a pupil at a school maintained by Essex County Council, went on a

school swimming trip to a pool in the local area. There she received a swimming lesson through ‘Direct Swimming Services’; on an outsourced contractual basis with the Education Authority.

• During the lesson the pupil got into difficulties and was seen ‘hanging vertically in the water’ and though resuscitated, suffered serious brain injury. The lesson was in school time and was part of the National Curriculum.

• Although the court decided that there was no Vicarious Liability running from Essex CC to the swimming instructor, the child’s solicitors argued for a ‘non-delegable duty of care’ to exist even though the lessons were outsourced. This was turned down at first instance and the Court of Appeal.

• On 23 October 2013, the Supreme Court (SC) decided unanimously (5 – 0) that Essex CC did owe the child, a NON-DELEGABLE DUTY OF CARE (NDDC), even though the swimming lesson in which she was injured was being delivered by a third party outsourced provider.

• As a result the Council ended up with a £3m claim made against them.

What it means for you?• Ensure that a contract is in place which lays out what is

expected of them. • Ensure appropriate insurance is held by the supplier (public

liability, indemnity clause). • Inspect insurance certificates regularly• Ensure that the contract is properly monitored. • Ensure that the contract can be terminated with immediate

effect or by agreement in appropriate circumstances. • Ensure that in the event of a claim being made that staff

are aware of the process to follow for claims processing:– a contractual duty upon the contractor to cooperate fully– details of witnesses– including access to witnesses, documents, assistance in tracing

and same additionally.

HR Updates – Sharon Dickman

• Reference requests• Sickness Request• Updated policies• Social Networking Policy• Flexible Working Policy

• Childcare Disqualification Requirement