Social Security (General Benefit) (Amendment No. 4) (Jersey) Order 2012

Information about the publication of Ministerial Decisions

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.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 22 February 2012:

Decision Reference: MD-S-2012-0013
Decision Summary Title :	DS – Make Order to amend Gen Benefit Order		Date of Decision Summary:	9 February 2012
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - Make Order to amend Gen Benefit Order		Date of Written Report:	9 February 2012
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Social Security (General Benefit) (Amendment No. 4) (Jersey) Order 2012.
Decision(s): The Minister made the Social Security (General Benefit) (Amendment No. 4) (Jersey) Order 2012.
Reason(s) for Decision: Legislative changes are required to fully implement the policy to introduce a new Social Security contribution rate above the earnings ceiling, in line with the Fiscal Strategy Review. As part of those changes, the rule for the calculation of the life average of a person’s annual contribution factor is relocated to the Social Security (Jersey) Law, 1974, via the Draft Social Security (Amendment of Law No.2) (Jersey) Regulations, 201-, and so the existing rule is removed from the Social Security (General Benefit) Order, 1975.
Resource Implications: There are no specific financial or manpower implications in respect of this Order. The overall impact of the increased contributions will be a reduction in the States Grant of approximately £7 million in 2012. The Social Security Fund will meet the cost of the required increase in staffing of up to 5FTE for the administration of class 2 contributors and other administration costs.
Action required: Policy Principal to notify the Greffier of the States and the Law Draftsman that the Order has been made so that it may be notified to the States, and forward the signed and sealed Order immediately to the States Greffe for publication and archiving.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Social Security (General Benefit) (Amendment No. 4) (Jersey) Order 2012

On 20 July 2011, the States Assembly approved the Draft Social Security (Amendment of Law No. 1) (Jersey) Regulations, 201-, (P.110/2011) that introduced a new Social Security contribution rate above the earnings ceiling, in line with the Fiscal Strategy Review. The new contribution rate of 2% is payable by employers and Class 2 individuals from 1 January 2012.

As noted in the report accompanying P.110/2011, additional legislative changes are required to fully implement the agreed policy. Since July, the Minister for Social Security has made a number of Ministerial Orders under the Social Security (Jersey) Law, 1974, to achieve this.

The Draft Social Security (Amendment of Law No.2) (Jersey) Regulations 201- address various minor issues within the existing legislation to finalize the legislative framework for 2012 and the new contribution liability. The Regulations create a new article in the Social Security Law that sets out the existing rules to define contribution factors. These factors are derived from the number of contributions made by an individual and are used to calculate entitlement to benefits and pensions.

The existing rule for the calculation of the life average of a person’s annual contribution factor is therefore removed from the General Benefit Order because it has been relocated to the Social Security Law via the Regulations.

Resource Implications

There are no specific financial or manpower implications in respect of this Order. The overall impact of the increased contributions will be a reduction in the States Grant of approximately £7 million in 2012. The Social Security Fund will meet the cost of the required increase in staffing of up to 5 FTE for the administration of class 2 contributors and other administration costs.

The existing rule for the calculation of the life average of a person’s annual contribution factor is removed from the General Benefit Order because it has been relocated to the Social Security Law via the Draft Social Security (Amendment of Law No.2) (Jersey) Regulations 201-