Government of Jersey

Information about the publication of Ministerial Decisions

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A decision made 1 March 2010 regarding: Public Employee Contributory Retirement Scheme - six monthly report on actuarial valuation as at 31 December 2007.

Decision Reference: MD-C-2010-0020
Decision Summary Title :	Six monthly Report of the Chief Minister – Public Employees (Contributory Retirement Scheme) (General) (Jersey) Regulations 1989		Date of Decision Summary:	25 February 2010
Decision Summary Author:	Senior Human Resources Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Six Report of the Chief Minister - Actuarial Valuation of the Public Employees Contributory Retirement Scheme as at 31 December 2007		Date of Written Report:	24 February 2010
Written Report Author:	Senior Human Resources Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Six month Report on the Actuarial Valuation of the Public Employees Contributory Retirement Scheme as at 31 December 2007.
Decision(s): To present to the States a six monthly Report regarding the deficiency relating to the PECRS 2007 valuation report.
Reason(s) for Decision: The latest PECRS Valuation as at 31st December 2007 was presented to the States on 11 August 2009 and shows a deficiency of £63.2m. Under the Regulations, proposals for dealing with a deficiency need to be agreed between the Committee of Management of the PECRS and the States Employment Board. If no agreement has been reached on proposals within three months of laying the Valuation before the States, then the Chief Minister submits a progress report noting its own proposals. This report was presented to the States on 25 November 2009. This six month report is to advise States Members that no agreement has been reached on ways to deal with the deficiency. However, in accordance with normal practice, representatives of the States Employment Board are currently in negotiations with the Public Employees Pension Joint Negotiating group (JNG) which represents the interests of all members of the Scheme. Under the Regulations these negotiations can continue until May 2010. The consequence of no agreement being reached is that the statutory fall-back position will apply. This means that the Committee of Management shall reduce or cancel any increase in pensions in payment, deferred pensions and deferred lump sums by a factor annually in perpetuity. The Scheme’s Actuary has confirmed that a reduction of 0.3% in pension increases will address the 2007 Valuation deficiency of £63.2m. The reduction to pension increases would therefore take effect as at January 2011.
Resource Implications: None
Action required: The Human Resources Manager is requested to arrange with the States Greffe for the Interim Report to be presented to the States at the earliest possible date.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):