THE bungled retirement of the county’s outgoing chief fire officer will cost the taxpayer about £320,000.

Following 18 months of legal battles and meetings behind closed doors, a report into the debacle of Paul Hayden’s retirement has finally been released.

Hereford and Worcester Fire and Rescue Service Authority has been slammed by auditors for incorrectly advising Mr Hayden he could take a bumper tax-free pension on his 50th birthday.

Mr Hayden gave written notice to the fire authority in August 2009 stating his desire to retire on May 12, 2010.

He was told Firefighter Pension Scheme (FPS) rules meant he had an “unqualified” right to retire and could access a tax-free lump sum and index-linked pension.

Mark Yates was appointed as the new chief fire officer in April 2010.

However, it was later realised Mr Hayden could not legally retire without formal permission from the fire authority.

Mr Hayden then launched a claim against the fire authority for £1.2 million.

Lawyers for the authority, Worcestershire county and Herefordshire councils were drafted in to negotiate an out-of-court settlement, which resulted in £100,000 compensation and allowed Mr Hayden to retire at the end of October 2010.

The fire authority will also be required to pay a tax penalty charge of £54,955 over the next four years and has incurred £62,903 in legal costs.

Mr Hayden was also paid a salary amounting to £75,639 between April and October last year, while new chief Mark Yates was also being paid his £122,000-a-year salary.

It is believed Mr Hayden has still received a very substantial pension.

Of the total £319,500, the fire authority will bear £74,500 with the two cash-strapped constituent councils paying out £122,500 each.

The councils were deemed liable as advice was given to Mr Hayden and the fire authority by council employees.

Grant Paterson, district auditor for the Audit Commission, who prepared the report, said the main problem was treasurer Mike Weaver and deputy monitoring officer Kevin O’Keefe’s failure to examine the pension scheme rules or seek further advice.

They then wrongly advised the fire authority that Mr Hayden did not require their permission to retire.

Mr Paterson said: “In my view, the treasurer and deputy monitoring officer should have better recognised the full potential complexity of the issue in 2009.

“By concluding that there was no requirement to seek specialist legal views, to discuss the matter with employment experts, or seek the views of the clerk, it put in train the series of events that led to the authority needing to settle the matter.

“The conclusion that the former chief fire officer had an ‘unqualified’ right to retire was not subject to a more rigorous challenge because of weaknesses that have now come to light in the way the authority’s governance arrangements operated in practice between its statutory officers.”

However, Mr Paterson said there was an over reliance on Mr Weaver’s interpretation of the FPS rules.

Mr Weaver publicly apologised for his part in the matter shortly before leaving his position as finance director at Worc-estershire County Council in August 2010.

Kevin O’Keefe no longer works for the fire authority, but still works in the legal services department at Herefordshire Council.

Timeline

• March 31, 2010
The Fire Brigades Union criticises Hereford and Worcester Fire and Rescue Service for effectively employing two chief fire officers at the same time with a 42-day overlap between Mark Yates starting and Paul Hayden’s official retirement date.

• April 1, 2010
Mark Yates officially starts as chief fire officer. Paul Hayden goes on annual leave until his official retirement date of May 12, 2010 – his 50th birthday.

• April 8, 2010
The FBU make an official challenge to Paul Hayden’s early retirement claiming he failed to obtain the necessary permission from the fire authority. The service refuses to comment.

• May 12, 2010
Paul Hayden’s contract is extended and he is placed on paid leave while the authority seeks legal advice.

• May 28, 2010
Information comes to light indicating Paul Hayden’s retirement could cost the taxpayer hundreds of thousands of pounds. It is alleged Mr Hayden retired early after being given incorrect advice. FBU say he could claim compensation from the fire service on grounds he was wrongly advised.

• June 29, 2010
A fire authority meeting hears how the retirement could cost the taxpayer £538,000 if the authority tries torecoup its losses from both Herefordshire and Worcestershire County Council. Fire authority treasurer Mike Weaver, an employee of Worcestershire County Council, said: “We now realise the advice was incorrect and I apologise unreservedly for my part in this affair.”

• July 9, 2010
Your Worcester News is excluded from a meeting of the fire authority’s appointments committee despite arguing the matter was in the public interest. Members voted unanimously to keep the meeting private. Councillor Tom Bean said he felt the disclosure of information at this stage would “impede” the authority in resolving the matter.

• August 11, 2010
Mike Weaver leaves his position as finance director at Worcestershire County Council after asking for early retirement. He also steps down as treasurer of Hereford and Worcester Fire and Rescue Service. Mr Weaver said: “My decision to retire is a personal and private matter.”

• January 27, 2011
Grant Paterson, from the Audit Commission, tells the fire authority he needs more time to fully complete his annual audit at an extra cost of £2,235.

• April 28, 2011
Investigations into Mr Hayden’s retirement have been completed but the financial ramifications remain unclear.

• May-October, 2011
A number of fire authority and audit committee meetings are held but the matter is not mentioned.

• October 28, 2011
A full report into the retirement is issued by the fire authority and the Audit Commission.