PECRS: Death in Service Lump Sum.

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A decision made (23/10/2006) regarding Public Employee Contributory Retirement Scheme - Death in Service Lump Sum.

Subject:	Public Employees Contributory Retirement Scheme Death in Service Lump Sum
Decision Reference:	MD-C-2006-0046		Exempt clause(s):	N/A
Type of Report: (oral or written)	Written		Person Giving Report (if oral):	N/A
Telephone or e-mail Meeting?			Report File ref:	MB/P&R/HRD/S52
Written report – Title	Public Employees Contributory Retirement Scheme (PECRS) Death in Service benefits whilst on unpaid leave
Written report – Author (name and job title)	Maureen Byron Senior Human Resources Manager
Decision(s): To agree to a minor change in the PECRS Regulations so that the death in service lump sum benefit could be paid in the event of the death of an employee whilst on unpaid leave.
Reason(s) for decision: The death in service lump sum is based on the annual salary the member was receiving at the date of their death. As employees on unpaid leave would not be in receipt of annual salary at date of death, the Law Officers have advised that the lump sum would not be payable. The amendment to the Regulations will deal with this situation should it arise.
Action required: Mrs Byron is requested to arrange with the States Greffe for the Report and Proposition to be lodged ‘au Greffe’ during the week beginning 23rd October 2006 for consideration on 5th December 2006.
Signature: Chief Minister		Date of Decision: 23 October 2006

PECRS: Death in Service Lump Sum.

REPORT

The Chief Minister is promoting an amendment to the Public Employees (Contributory Retirement Scheme) (Existing Members) (Jersey) Regulations 1989 and the Public Employees (Contributory Retirement Scheme) (New Members) (Jersey) Regulations 1989. Under the Regulations an employee can remain a member of PECRS for up to two years whilst on unpaid leave as agreed by the Employer. However, there is an issue regarding pension benefits and the situation that would occur following the death of an employee during a period of unpaid leave either under the Career Break Policy or the Maternity Leave Policy or indeed any period of unpaid leave the Employer may grant.

The death in service lump sum is based on the annual salary the member was receiving at the date of their death. As employees on unpaid leave would not be in receipt of annual salary at date of death, the Law Officers have advised that the lump sum would not be payable and there is no provision under the Regulations which deals with members who are absent from duty other than by reason of ill health or injury.

This amendment is a minor change in the PECRS Regulations so that the death in service lump sum benefit would be able to~~may~~ be paid in the event of death of an employee whilst on unpaid leave.

There are no financial or manpower implications arising from this draft Law.