Letter to Members – April 2015
The Remuneration Board held its third meeting of 2015 on 24 April. I am writing to keep you abreast of progress.
Determination for the Fifth Assembly
The Board considered responses to the general consultation on the Draft Determination for the Fifth Assembly, which was issued on 6 March and closed on 8 April 2015. We also considered correspondence from the Petitions Committee regarding a petition they had received on Members’ future salary.
We have now reached our final conclusions on all aspects of remuneration and financial support. On 22 May, we will publish our Determination for the Fifth Assembly, as we have committed to do, a year before the Welsh general election.
Alongside the Determination, we will also publish a report, which explains our aims and thinking in coming to our conclusions.
We will also publish responses to the consultation on the draft Determination for the Fifth Assembly.
Group Support
Through the consultation on the draft Determination, the Board consulted on a new model for Group funding. The Board received responses from each of the Groups in the Assembly. The Board also received feedback through the established representative groups of Members and AMSS.
The key issues were the total sum available, funding for parties in coalition government; the size of the core funding; and whether it was justified to support individuals or pairs of Members.
In response to this feedback, the Board has reviewed the proposed formula for determining the funding for Groups and made some adjustments. This revised formula will be published in the final Determination for the Fifth Assembly with an explanation of the Board’s conclusions in the accompanying report.
Pensions
The Board heard a progress update on the new pensions scheme. The Board has taken account of comments from the Board of Pension Trustees on the draft scheme and will write to them separately with its response. Following discussions with HM Treasury we hope to have a new pension scheme approved over the Summer.
In order to give the clearest picture to potential candidates for the Fifth Assembly, we agreed we would nonetheless publish the key features of the proposed scheme as part of the Determination, with the caveat that we are awaiting official Treasury approval as necessary under the Public Services Pensions Act.
The Board also considered the Actuarial Valuation report of the Members’ Pension Scheme and will seek further information on some aspects from the Trustees.
Other issues
We have amended the 2015-16 Determination (section 3.4). This section addressed the small number of Members holding offices that continue beyond dissolution in April 2016 (the Presiding Officer, Commissioners and Cabinet) who would not be Members in the next Assembly. Our initial decision sought to avoid the situation where those Office Holders would go into the new pension scheme for a matter of days at the start of the next Assembly pending the appointment of their replacement (or their resignation from post). Section 3.4 provides for an allowance payment in lieu of salary, avoiding any need to be covered by the new Scheme briefly.
Subsequently, the Board was advised that, if this policy were put into effect, Office Holders would lose their death in service benefits at dissolution (until those offices are filled in the new Assembly). The Board wants to avoid any potentially unfair disadvantages to Members so we have now removed section 3.4. Those Members will therefore enter the new Pension Scheme for a brief period and will also retain their right to life assurance (death in service benefit) until they cease to hold office.
Next steps
As usual, I intend to make this letter publicly available through our website once Members have had a chance to read it.
I am happy to meet with individual AMs or party. If you would like to meet, please contact the Board’s clerk Gareth Price remuneration@assembly.wales to make arrangements.
Yours sincerely
Sandy Blair CBE DL
Cadeirydd / Chair
Bwrdd Taliadau/Remuneration Board