Pay Award 2013: 1% Non-Consolidated and 1% Consolidated: Contingency Funding: Transfer

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A decision made 23 January 2013:

Decision Reference: MD-S-2013-0008
Decision Summary Title:	Contingency Funding for 2013 1% Non Consolidated Pay Award and 1% Consolidated Pay Award		Date of Decision Summary:	21st January 2013
Decision Summary Author:	Director of Finance & Governance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Contingency Funding to Departments for the 1% Consolidated and 1% Non Consolidated Pay Award for 2013		Date of Written Report:	21st January 2013
Written Report Author:	Director of Finance & Governance		Written Report : Public or Exempt?	N/A
Subject: Pay award 2013 - Transfer of contingency funding .
Decision(s): The Minister accepted a budget transfer for non-recurring contingency funding totalling £100,695 from the Central Contingency (Pay Provision) for costs associated with the 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorized to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The SEB have offered a 1% non-consolidated pay award and 1% Consolidated Pay Award for 2013 for which contingency funding is held in the States of Jersey Central Contingency (Pay Provision). In order to make the payments associated with this award it is necessary to have the budget transferred to the Social Security Department’s head of expenditure.
Resource Implications: The Social Security Department’s revenue head of expenditure will increase in total by £100,695. This decision does not change the total amount of expenditure approved by the States for 2013.
Action required: Director of Finance & Governance to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position: Senator F Le Gresley, Social Security Minister
Date Signed:		Date of Decision:

Pay Award 2013: 1% Non-Consolidated and 1% Consolidated: Contingency Funding: Transfer

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Social Security Department

Ministerial Decision Report

Contingency Funding to DEPARTMENTS for THE 1% CONSOLIDATED AND 1% NON CONSOLIDATED PAY AWARD FOR 2013

Purpose of Report

To enable the Social Security Minister to approve a 2013 request for contingency funding from the Central Contingency (Pay Provision) to the Social Security Department as per the schedule at Appendix 1 for costs associated with the 1% Consolidated and 1% Non Consolidated Pay Awards for 2013.

Background

On 4th December 2012, the Chief Minister announced in the States that the employer would be implementing the final pay offer made initially on 12th July 2012.

The final offer provides for;-

2012, 1% non consolidated pay award paid as a one off lump sum, with effect 1st January 2012;
2013, 1% consolidated pay award plus 1% non consolidated pay award paid as a one off lump sum, with effect 1st January 2013;
2014, 4% consolidated pay award with effect 1st January 2014 in return for a modernisation agreement;
A guarantee of no compulsory redundancies until the end of 2014.

In 2013, the Council of Ministers has made provision in the Medium Term Financial Plan (MTFP) for a Central Contingency (Pay Provision) for the 1% Consolidated and 1% Non Consolidated Pay Award for 2013. The implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.

The cost of the 2013 1% Non Consolidated pay award for the Social Security Department is £68,902 but the amount requiring transfer from Treasury is £38,658 as the Social Security Fund and Health Insurance Fund element of the pay award amounts to £30,244.

The cost of the 2013 1% Consolidated pay award for the Social Security Department is £99,515 but the amount requiring transfer from Treasury is £62,037 as the Social Security Fund and Health Insurance Fund element of the pay award amounts to £37,478.

This gives a total of £100,695 from the Treasury in total for 2013.

3. Recommendation

The Social Security Minister is recommended to approve a 2013 request for £100,695 from the Central Contingency (Pay Provision) to the Social Security Department as set out in Appendix 1 for costs associated with the 1% Consolidated and 1% Non Consolidated Pay Award for 2013.

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

5. Resource Implications

The Social Security Department’s revenue head of expenditure to increase by £100,695 as set out in Appendix 1 and the Treasury and Resources Central Contingency (Pay Provision) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013.

APPENDIX 1: SCHEDULE OF COSTS TO DEPARTMENTS OF THE 1% NON CONSOLIDATED PAY AWARD AND 1% CONSOLIDATED PAY AWARD FOR 2013 TO BE FUNDED BY A TRANSFER FROM THE CENTRAL CONTINGENCY (PAY PROVISION) FOR 2013