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Contribution to Public Employees Contributory Retirement Scheme (PECRS) pre 1987 debt repayment

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

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A decision made (29.03.06) to transfer an amount to the Chief Minister's Department in order to ring fence the funds required to enable the repayment and servicing of the PECRS pre 1987 debt.

Subject:

contribution to the Public Employees Contributory Retirement Scheme (PECRS) pre 1987 Debt Repayment

Decision Reference:

MD-ESC-2006-0017

Exempt clause(s):

none

Type of Report (oral or written):

Written

Person Giving Report (if oral):

n/a

Telephone or

e-mail Meeting?

n/a

Report

File ref:

 

Written Report –

Title:

As subject

Written report – Author:

Liz Middleton – Assistant Director, Resources

Decision(s):

To transfer £235,000, equivalent to 2% of the pay of members of the Scheme, to the Chief Minister’s Department in order to ring fence the funds required to enable the repayment and servicing of the PECRS pre 1987 debt.

Reason(s) for decision:

· A valuation of the PECRS at 31 December 2001 placed a value on the States’ share of the pre 1987 debt at £177.5 million.

· On 27 September 2005 the States approved amendments to the PECRS in order to address the pre 1987 deficit (P189/2005 and P190/2005).

· A framework for dealing with the debt, approved by the former Policy and Resources Committee and the Committee of Management, agreed to increase the employers contribution to the scheme to 15.6% of which a repayment equivalent to 2% of members’ pay would be made over 82 years from 1 January 2002.

Action required:

  Provide financial codes for the budget transfer to the Treasury and Resources Department.

Signature:

Date of Decision:

 

 

 

 

 

Hide report
Contribution to Public Employees Contributory Retirement Scheme (PECRS) pre 1987 debt repayment

Department for Education, Sport and Culture

Report for Minister

Subject:

Contribution to the Public Employees Contributory Retirement Scheme (PECRS) pre 1987 Debt Repayment

Exempt Clause:

n/a

Date:

16 March 2006

 

 

Author:

Liz Middleton – Assistant Director, Resources

1. Introduction

The purpose of this report is to ask the Minister to agree to transfer a budget of £235,000, equivalent to 2% of the pay of members of PECRS, to the Chief Minister’s Department in order to ring fence the funds required to enable the repayment and servicing of the PECRS pre 1987 debt.

2. Background

On 27 September 2005 the States approved amendments to the PECRS in order to address the pre 1987 deficit of the Scheme (P189/2005 and P190/2005).

A valuation at 31 December 2001 placed a value on the States’ share of the pre 1987 debt at £177.5 million.

A framework for dealing with the debt, approved by the former Policy and Resources Committee and the Committee of Management, agreed to increase the employers contribution to the scheme to 15.6% of which a repayment equivalent to 2% of members’ pay would be made over 82 years from 1 January 2002.

3. Comments

During the 2006 Budget process Departments’ revenue budgets included a provision to increase their PECRS contribution from 15.16% to the required 15.6%.

It has been proposed that the budget for the 2% element for repayment and servicing of the debt be transferred from all Departments’ budgets to a central Human Resources business unit held within the Chief Minister’s Department. This arrangement will lessen the burden on Departments to make monthly repayments and also insulate Departments should the costs of the repayments increase or staff numbers decrease. Details of the calculation prepared by the Treasury and Resources Department are attached at Appendix A.

Alongside this arrangement the States Payroll has been adjusted such that Departments will be charged the reduced 13.6% PECRS contributions from January 2006.

4. Recommendation

It is recommended that the Minister agrees to transfer £235,000 to the Chief Minister’s Department in order to ring fence the funds required to enable the repayment and servicing of the PECRS pre 1987 debt.

Appendix A

Department for Education, Sport and Culture

Calculation of 2% PECRS contribution for the ongoing repayment of the pre 1987 debt

2006

 

PECRS

 

Budget

 

1

 

2%

 

PECRS

 

Provision

 

2

 

Ministerial Department

 

£'000

 

£'000

 

Chief Minister

 

1,043.3

 

 

 

 

 

133.8

 

 

 

 

 

Economic Development

 

379.0

 

 

 

 

 

48.6

 

 

 

 

 

Education, Sport and Culture

 

1,833.3

 

 

 

 

 

235.0

 

 

 

 

 

Health and Social Services

 

10,226.8

 

 

 

 

 

1,311.1

 

 

 

 

 

Home Affairs

 

3,810.2

 

 

 

 

 

488.5

 

 

 

 

 

Housing

 

3

 

366.0

 

 

 

 

 

46.9

 

 

 

 

 

Planning and Environment

 

784.6

 

 

 

 

 

100.6

 

 

 

 

 

Social Security

 

3

 

231.1

 

 

 

 

 

29.6

 

 

 

 

 

Transport and Technical

 

1,893.6

 

 

 

 

 

242.8

 

 

 

 

 

Treasury and Resources

 

1,321.4

 

 

 

 

 

169.4

 

 

 

 

 

States Assembly

 

196.7

 

 

 

 

 

25.2

 

 

 

 

 

- Overseas Aid

 

6.1

 

 

 

 

 

0.8

 

 

 

 

 

Non Ministerial States Funded Bodies

 

- Bailiff's Chamber

 

129.6

 

 

 

 

 

16.6

 

 

 

 

 

- Law Officers' Dept

 

398.7

 

 

 

 

 

51.1

 

 

 

 

 

- Judicial Greffe

 

256.6

 

 

 

 

 

32.9

 

 

 

 

 

- Viscount's Dept

 

128.4

 

 

 

 

 

16.5

 

 

 

 

 

- Official Analyst

 

45.6

 

 

 

 

 

5.8

 

 

 

 

 

- Lieutenant Governor

 

58.0

 

 

 

 

 

7.4

 

 

 

 

 

- Dean of Jersey

 

-

 

 

 

 

 

-

 

 

 

 

 

- Data Protection

 

27.4

 

 

 

 

 

3.5

 

 

 

 

 

- Probation

 

146.9

 

 

 

 

 

18.8

 

 

 

 

 

Total

 

23,283.3

 

 

 

 

 

2,985.0

 

 

 

 

 

Notes:

 

 

 

 

 

 

original 15.16% provision in base budgets plus the additional 0.44% provided in the 2006 Budget process, i.e. a total

 

of 15.6%.

 

 

 

 

 

 

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