WELSHPOOL Town Council is facing a bill of £215,000 to cover a shortfall in pension payments.
The value of the pension fund that pays for town council staff is assessed every three years and in 2010 was found to be too small to cover future payments.
Welshpool Town Council has been told that it must cover the difference from its own funds.
Town Clerk Robert Robinson has protested that the demand came out of the blue and with little explanation – and is concerned that similar demands on smaller town and community councils across Wales may bankrupt them: “We pay a generous 35 per cent of salary into the pension pot,” said Mr Robinson. “That was supposed to cover it, but it hasn’t covered it.”
He said Powys County Council is asking them to double contributions.
“Why have we been presented with a bill when we’ve paid everything we’ve been asked to? We’re a bit aggrieved.
“We feel we need to challenge the county council’s validity in asking for us to pay the shortfall for a fund that they manage.
“We’re taking legal advice on what to do and for now we’re sticking to the current arrangement – I’m not moving away from that.”
A spokesman for Powys County Council stressed that this problem did not affect other town councils in the same way – every council’s position differed: “Actuarial valuation results for the other town councils in the scheme varies.
"Some are in deficit but others are in surplus. All the other town councils have accepted their valuation results.”