Public Employees Contributory Retirement Scheme (PECRS): Pre-1987 Debt: Delay in accelerated payment and return of allocated funding to Consolidated Fund

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A decision made 26 May 2015:

Decision Reference: MD-TR-2015-0061
Decision Summary Title:	PECRS delay in repayments of Pre-1987 Debt – return of allocated funding to the Consolidated Fund		Date of Decision Summary:	15th May 2015
Decision Summary Author:	Finance Manager - Corporate Group		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	PECRS delay in repayments of Pre-1987 Debt – return of allocated funding to the Consolidated Fund		Date of Written Report:	15th May 2015
Written Report Author:	Finance Manager - Corporate Group		Written Report : Public or Exempt?	Public
Subject: Delay in the accelerated payment of the PECRS Pre-1987 debt and return of allocated funding to the Consolidated Fund.
Decision(s): The Treasury and Resources Minister approved a non-recurring return of allocated funding of £2 million from the Treasury and Resources (T&R) revenue head of expenditure to the Consolidated Fund as part of the measures balancing the Consolidated Fund in 2015.
Reason(s) for Decision: During the States debate of the 2015 Budget (P.129/2014) the States approved proposed measures to manage the balancing of the Consolidated Fund which included a delay in the accelerated payment of the PECRS Pre-1987 debt.
Resource Implications: Upon approval by the Treasury and Resources Minister, the T&R revenue head of expenditure to decrease by £2 million and the Consolidated Fund to increase by an identical amount in 2015.
Action required: Head of Decision Support to notify the Finance Manager - Corporate Group, Head of Financial Planning and Head of Financial Performance that this decision has been approved.
Signature:		Position: Senator A J H Maclean Minister for Treasury and Resources
Date Signed:		Date of Decision:

Public Employees Contributory Retirement Scheme (PECRS): Pre-1987 Debt: Delay in accelerated payment and return of allocated funding to Consolidated Fund

Treasury and Resources

Ministerial Decision Report

PECRS delay in repayments of Pre-1987 Debt – return of allocated funding to Consolidated Fund

Purpose of Report

To request the Treasury Minister to approve a non-recurring return of allocated funding of £2 million from the Treasury and Resources Department (T&R) allocated revenue head of expenditure to the Consolidated Fund as part of the measures balancing the Consolidated Fund in 2015.

Background

Article 10(8) of the Public Finances (Jersey) Law 2005 requires the Minister for Treasury and Resources to lodge a Budget where the Consolidated Fund is balanced. The forecast of States income in 2014 and 2015 necessitated measures to be proposed to maintain a positive balance on the Consolidated Fund, should actual income tax revenues fall to the levels now forecast.

The proposed measures are detailed within Appendix 1 (as attached) of the 2015 Budget Statement (P.129/2014) and approved during the States’ debate of 22 – 24 September 2014.

Proposed and approved measures included a delay in the accelerated payment of the PECRS Pre-1987debt. The original T&R MTFP 2013 – 2015 budget was increased by £1 million for 2013, £2 million for 2014 and £3 million for 2015 to provide additional funding for the early repayment of the Pre-1987 debt.

£1 million of additional funding was returned in 2014 as a part of the Department’s underspends to support this balancing the Consolidated Fund and in addition, the States approved £2 million of the Department’s PECRS Pre-1987 debt budget to be returned to the Consolidated Fund in 2015.

Recommendation

The Treasury Minister is recommended to approve a non-recurring return of allocated funding of £2 million from the T&R revenue head of expenditure to the Consolidated Fund as part of the measures balancing the Consolidated Fund in 2015.

Reasons for Decision

During the States debate of the 2015 Budget (P.129/2014) the States approved a number of proposed measures to manage the Consolidated Fund including the delay in the accelerated payment of the PECRS Pre-1987 debt and a transfer of accelerated amount back to the Consolidated Fund.

Resource Implications

Upon approval by the Treasury and Resources Minister, the Treasury revenue budget to decrease by £2 million, and the Consolidated Fund to increase by an identical amount in 2015.

Report author : Finance Manager - Corporate Group	Document date :
Quality Assurance /	File name and path :
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Appendix 1 – Proposed measures to balance the Consolidated Fund (from Addendum and Budget Statement 2015)