Public Employees Contributory Retirement Scheme payment holidays or reduced payments (FOI)
Public Employees Contributory Retirement Scheme payment holidays or reduced payments (FOI)Produced by the Freedom of Information office
Authored by States of Jersey and published on 17 January 2017.
Further to my previous request:
Public Employees Contributory Retirement Scheme payment holidays (FOI)
I would like to rephrase my requests A through F to make them clearer and more accurate.
The original request A was:
Following the debacle of the BHS pension scheme not having enough funds for the pensioners following repeated pension holidays. I would like to know if over the last 10 years the managers of the States and incorporated companies have taken any payment holidays.
Specifically by departments or States owned company such JT and Jersey Post for each of the last 10 years.
Revised request A
Following the debacle of the BHS pension scheme not having enough funds for the pensioners following repeated 'pension holidays' I would like to know if over the last 10 years the managers of the Public Employees Contributory Retirement Scheme (PECRS) and incorporated companies have taken any payment holidays or have reduced payments into the scheme without notifying the scheme members (the employees).
My definition of a payment holiday would be taking as a starting point the declared percentage payments agreed in the employment contract of states employees that defines a percentage of annual wages of the employee and employer to be paid into the PECRS scheme. So to make this really clear say for example within the employment contract, the employer agrees to pay in eight percent and the employee four percent to the PECRS scheme has at any time this percentage rate of payment by the employer been reduced with notification, consultation or any communication with all the scheme members, by members I include the individual members of the scheme ie employees not just scheme administrators.
Hopefully this make request A crystal clear. The requests B to F still remain and I would appreciate an answer to these requests in full.
The employer contribution rate is not defined in the employment contracts of states employees. No payment holiday has been taken by the States of Jersey or the Admitted Bodies in the last 10 years.
The Public Employees Contributory Retirement Scheme (PECRS) is governed by Regulations which specify the employer contributions which must be made by the States of Jersey. Admitted Bodies with ring-fenced funds have been required to pay employer contributions specified by the Scheme Actuary.
Throughout the last 10 years Admitted Bodies have paid the employer contributions deemed appropriate and required of them by the Scheme Actuary.
The PECRS Committee of Management is required to administer the scheme in accordance with the Regulations and this includes ensuring that employer and employee contributions are received at the levels defined in the Regulations and / or required by the Scheme Actuary.
The Scheme Actuary undertakes an actuarial valuation every three years. This outlines the funding level of the scheme, the relationship between estimated future pension payments and the funds held to pay for those pensions. This document is presented to the States, published on the States website and provides details of how any scheme surplus is used.
The Public Employees (Pension Scheme) (Funding & Valuation) (Jersey) Regulations 2015 define the employer contributions payable and the process for setting employer and employee contribution rates for the future. Any amendments to the Regulations would need to be approved by the States Assembly.