Social Security Department
Reserve Fund Cash Transfers
1. Purpose of Report
To acknowledge and approve the Social Security Department’s cash transfers into the Reserve Fund for 2004 to 2007, to date and the delegation of the responsibility for any future transfers to the Department’s Chief Officer.
2. Summary
From time to time the Department will transfer available cash from short term investment into the Reserve fund for onward investment by the Fund managers. In the past it has been necessary to obtain Committee and latterly Ministerial approval whenever this action is taken in order to comply with the Social Security Law, article 31(1). A copy of the relevant article is attached
Approval is now required for funds that have been transferred between September 2005 and January 2007, totalling £45 Million. A spreadsheet is attached detailing the dates and amounts of these transfers.
A Ministerial Decision made now delegating the responsibility for any future transfers to the Department’s Controller and CEO, will avoid the need for a Ministerial Decision to be sought for each and every occasion such transfers are deemed appropriate.
3. Recommendation
It is recommended that the Social Security Minister acknowledges and approves the Reserve Fund transfers, totalling £45 Million, that have occurred between September 2005 and January 2007. Also that the Minister delegate the authority and responsibility for making similar transfers of funds in the future to the Department’s Chief Officer.
GP
26/03/2007
Social Security Law, Article 31
FINANCE, ADMINISTRATION AND LEGAL PROCEEDINGS
31 Social Security (Reserve) Fund
(1) The Insular Insurance (Reserve) Fund established in pursuance of the Law of 1950 shall be renamed the Social Security (Reserve) Fund and shall be under the control and management of the Minister, and such assets as the Minister may determine may be transferred from the Social Security Fund into the Social Security (Reserve) Fund which shall be maintained as a reserve for the Social Security Fund.
(2) Article 30(4), (5), (5A), (5B), (5C), (5D), (6), (7), (8) and (9) shall apply to the Social Security (Reserve) Fund as they apply to the Social Security Fund.
(3) Any sums determined by the Minister to be income of the Social Security (Reserve) Fund shall be paid into the Social Security Fund.
(4) Subject to the foregoing provisions of this Article and any other provision of this Law expressly directing payments to be made out of the Social Security (Reserve) Fund, a payment out of that Fund shall not be made otherwise than under the authority of a resolution of the States and shall be made subject to such conditions as to repayment or otherwise as may be specified in the resolution.