Police have confirmed they will investigate the pension payments made to senior officers by Carmarthenshire and Pembrokeshire County Councils.

Spending watchdog, Wales Audit Office, published three reports into the councils allowing senior officers to opt-out of the Local Government Pension Scheme (LGPS).

Both councils have denied the payments to enable officers to make their own pension arrangement were ‘unlawful’ and will be discussing the reports and recommendations in due course.

A police statement said: ‘Dyfed-Powys Police have now fully considered the three Public Interest Reports published on 30th January 2014 by Wales Audit Office, into matters relating to Carmarthenshire and Pembrokeshire County Councils.

‘As a result, the Force has decided that it is a matter which should be investigated in the public interest by the Police, to ascertain whether or not any criminal offences have taken place.

‘Due to the close working relationships and partnership arrangements that exist between Dyfed-Powys Police and both local authorities, it is not appropriate for the Force to carry out the enquiry. As such the matter has been referred to Gloucestershire Constabulary who will undertake the investigation.

‘Dyfed-Powys Police would like to make it absolutely clear that this decision has been taken by the Police alone, and has in no way been influenced by political commentary or media reporting on this issue.’

Pembrokeshire County Council is holding a meeting on 14 February to discuss the report and its recommendations. The council said it is due to hear evidence to show the arrangement had a positive financial benefit to the authority.

Leader of the council, Jamie Adams, said: ‘It is of the utmost importance that members do not allow a perception to arise that they had predetermined their position on these matters before seeing all the evidence that will be presented to council.’