Budget Transfer: Settlement of Housing pre-1987 Public Employees Contributory Retirement Scheme Debt

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A decision made on 26 June 2014:

Decision Reference: MD-TR-2014-0056
Decision Summary Title:	Budget transfer between Housing’s heads of expenditure to settle pre1987 PECRS debt		Date of Decision Summary:	17 June 2014
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget transfer between Housing’s heads of expenditure to settle pre1987 PECRS debt		Date of Written Report:	17 June 2014
Written Report Author:	Treasurer of the States		Written Report : Public or Exempt?	Public
Subject: Budget transfer between Housing’s heads of expenditure to enable the department to settle the pre1987 Public Employees Contributory Retirement Scheme’s (PECRS) debt.
Decision(s): The Minister approved the budget transfer of £1,908,619 from the Housing capital rolling vote to the Housing revenue head of expenditure in order to settle the Pre1987 PECRS debt.
Reason(s) for Decision: Article 18(1)(c) of the Public Finances (Jersey) 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
Resource Implications: The Housing capital rolling vote to decrease by £1,908,619 and the Housing revenue head of expenditure to increase by an identical amount in 2014. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2013 to 2015.
Action required: Business Manager to notify the Financial Performance Reporting Manager and the Finance Manager at Housing that this decision has been approved
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Transfer: Settlement of Housing pre-1987 Public Employees Contributory Retirement Scheme Debt

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Treasury and Resources

Ministerial Decision Report

Budget transfer between Housing’s heads of expenditure to settle pre1987 PECRS debt

Purpose of Report

To enable the Minister for Treasury and Resources to approve a budget transfer between Housing’s heads of expenditure to enable the department to settle the pre1987 Public Employees Contributory Retirement Scheme’s (PECRS) debt.

Background

Following the approval of P.33/2013 the Reform of Social Housing on 16th May 2013, the States approved P.63/2013 the Draft Social Housing (Transfer) (Jersey) Law 201- (the Law) on 17th July 2013.

The Law was subsequently approved by the Privy Council on 9th October 2013 and registered in the Royal Court on 18th October 2013.

Article 8 of the Law relates to the transfer of the employees of the Housing Department to Andium Homes Limited on 1st July 2014. Employees will transfer on their existing terms and conditions, including pension rights and obligations. In order for Andium Homes Limited to be accepted as an admitted body to the PECRS Pension scheme the “Pre-1987 debt” which relates to the Housing’s Department must be settled on or before the 30th June 2014. The amount required to settle the debt is £1,908,619.

A copy of the valuation report from AON Hewitt is attached for reference.

The Housing department does not have a revenue budget for this purpose. However an unallocated amount in the Housing Rolling Vote has been identified which can be used for this purpose.

Under article 18(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

Recommendation

It is recommended that the Minister for Treasury and Resources approves the budget transfer of £1,908,619 from the Housing capital rolling vote to the Housing revenue head of expenditure in order to settle the Pre1987 PECRS debt.

Reason for Decision

Article 18(1)(c) of the Public Finances (Jersey) 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

Resource Implications

The Housing capital rolling vote to decrease by £1,908,619 and the Housing revenue head of expenditure to increase by an identical amount in 2014.

This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2013 to 2015.

Report author : Treasurer of the States	Document date : 17/06/2014
Quality Assurance / Review : Business Manager	File name and path L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2014-0056 - Housing budget tfr from cap to rev for the Pre1987 PECRS debt\WR - Housing budget tfr from Cap to Rev re Pre1987 PECRS debt.docx

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