Analisis de equilibrio estadístico

2.1. The average number of DMO employees during the year was as follows:

2004-05 2003-04

Maintaining sound public finances 75 3 70 2 83

in accordance with the Code for Fiscal Stability

Staff engaged on capital projects 9 - 3 6 3

TOTAL 84 3 73 8 86

2.2. Aggregate staff payroll costs were:

2004-05 2003-04

Permanent

TOTAL Staff Others

£000 £000 £000 £000

Wages and salaries 4,272 3,652 620 3,602

Social security costs 351 351 - 317

Other pension costs 549 549 - 491

Sub Total 5,172 4,552 620 4,410

Inward secondees 12 12 - 118

Total 5,184 4,564 620 4,528

Less recoveries in respect of outward secondment - - - (21)

Total Net Costs * 5,184 4,564 620 4,507

* Of the total, £766,281 has been charged to capital.

The Principal Civil Service Pension Schemes (PCSPS) to which all of the Agency’s employees are members is an unfunded multi-employer defined benefit scheme, but the DMO is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation was carried out at 31 March 2003 and details can be found in the resource accounts of the Cabinet Office:

Civil Superannuation (www.civilservice-pensions.gov.uk).

For 2004–05, normal employer contributions of £500,891 were payable to the PCSPS (2003–04 £467,563) at rates in the range 12 to 18.5 per cent (2003-04: 12 to 18.5 per cent) of pensionable pay, based on salary bands. The scheme’s Actuary reviews employer contributions every four years following a full scheme valuation. Rates will remain the same next year, subject to revalorisation of the salary bands, but will increase from 2005-06. The contribution rates reflect benefits as they are accrued, not when the costs are actually incurred; and they reflect past experience of the scheme.

Employees joining after 1 October 2002 could opt to open a partnership pension account, a stakeholder pension with an employer contribution. Employer's contributions of £20,411 (2003-04: £11,368) were paid to one or more of the panel of four appointed stakeholder pension providers. Employer contributions are age-related and range from 8 to 10 per cent (2003-04: 8 to 10 per cent) of pensionable pay. Employers also match employee contributions up to 3 per cent of pensionable pay. In addition, employer contributions of £1,370, 0.8 per cent (2003-04: £715, 0.8 per cent) of pensionable pay, were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service and ill health retirement of these employees. Contributions due to the partnership pension providers at the balance sheet date were nil.

Contributions prepaid at that date were nil.

2.3 Salary and pension entitlements

2.3.1 Renumeration

2004-05 2003-04 Salary Salary

£000 £000

Robert Stheeman - Chief Executive 120 - 125 110 - 115

Jo Whelan - Deputy Chief Executive * 90 - 95 65 - 70

Jim Juffs - Chief Operating Officer 110 - 115 95 - 100

* The salary disclosed reflects part time hours and are calculated on a pro rata basis from full time equivalent (FTE) of 0.78 in 2004-05 (0.6 in 2003-04).

‘Salary’ includes gross salary; performance pay or bonuses; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances; private office allowances and any other allowances to the extent that it is subject to UK taxation.

The other members of the Managing Board are the non-Executive Directors. Salaries and allowances payable to both Colin Price and James Barclay in the reporting period were £15,000 each, while the amount payable to Brian Larkman from 1 January was £3,750. Sue Owen, who is an employee of HM Treasury is not remunerated by the DMO.

2.3.2 Pension benefits

The Cash Equivalent Transfer Value (CETV)

This is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme.

It is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the pension benefits they have accrued in their former scheme.The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total service, not just their current appointment. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries.

The real increases in the value of the CETV

This takes account of the increase in accrued pension due to inflation and contributions paid by the individual and is calculated using common market valuation factors for the start and end of the period.

Real Total

increase in accrued

pension pension at Real

entitlement age 60 at 31 CETV at 31 CETV at 31 increase in at age 60 March 2005 March 2004 March 2005 CETV

£000 £000 £000 £000 £000

Robert Stheeman - Chief Executive 0 - 2.5 0 - 5 24 41 15

Jim Juffs - Chief Operating Officer 5 - 7.5 25 - 27.5 55 82 19

Jo Whelan has withheld consent for disclosure of her pension benefits.

Civil Service pensions

Pension benefits are provided through the Civil Service Pension arrangements. From 1 October 2002, civil servants may be in one of three statutory based “final salary” defined benefit schemes (classic, premium and classic plus). The Schemes are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under the classic, premium, and classic plus are increased annually in line with changes in the Retail Prices Index. New entrants after 1 October 2002 may choose between membership of premium or joining a good quality “money purchase” stakeholder based arrangement with a significant employer contribution (partnership pension account).

Employee contributions are set at the rate of 1.5 per cent of pensionable earnings for classic and 3.5 per cent for premium and classic plus. Benefits in classic accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump sum equivalent to three years’ pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum (but members may give up (commute) some of their pension to provide a lump sum). Classic plus is essentially a variation of premium, but with benefits in respect of service before 1 October 2002, calculated broadly as per classic.

The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 3 per cent and 12.5 per cent (depending on the age of the member) into a stakeholder pension product chosen by the employee. The employee does not have to contribute but where they do make contributions, the employer will match these up to a limit of 3 per cent of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.8 per cent of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill-health retirement).

Further details about the CSP arrangements can be found at the website www.civilservice-pensions.gov.uk

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member's accrued benefits and any contingent spouse's pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The CETV figures, and from 2003–04 the other pension details, include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the CSP arrangements and for which the CS Vote has received a transfer payment commensurate to the additional pension liabilities being assumed. They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their own cost.

CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries.

Real increase in CETV

This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.