Crown Prosecution Service Resource Accounts 2009 - 2010

Departmental Remuneration Report

Remuneration Policy

The Remuneration Committee comprises:

• Keir Starmer QC (DPP)
• Peter Lewis (Chief Executive)
• Ros McCool (Director, Human Resources)
• Mark Summerfield (Deputy Director, Pay and Reward)

There are no independent members of the Committee.

The remuneration of senior civil servants is set according to guidance provided by the Cabinet Office, following the recommendations made by the independent Senior Salary Review Body (SSRB) to the Prime Minister.

The Review Body also advises the Prime Minister from time to time on the pay and pensions of Members of Parliament and their allowances; on Peers' allowances; and on the pay, pensions and allowances of Ministers and others whose pay is determined by the Ministerial and Other Salaries Act 1975.

In reaching its recommendations, the Review Body is required to have regard to the following considerations:

• the need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities;
• regional/local variations in labour markets and their effects on the recruitment and retention of staff;
• Government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services;
• the funds available to departments as set out in the Government's departmental expenditure limits; and
• the Government's inflation target.

The Review Body takes account of the evidence it receives about wider economic considerations and the affordability of its recommendations.

Further information about the work of the Review Body can be found at www.ome.uk.com.

In addition, the Remuneration Committee is tasked with considering the relative contributions of the Department's senior employees within each pay band. Paying due regard to completed performance reports, consistency and scope of objectives and the effects of external factors, the Committee will then consider individual awards in line with Cabinet Office guidance. The average increase for 2009-10 was 2.3 per cent. An additional performance related payment averaging 8.6 per cent was available for Senior Civil Service staff during 2009-10, following Cabinet Office guidance, with the top performing 25 per cent receiving a bonus of 10 to 15 per cent, the next 40 per cent receiving between 5 and 10 per cent.

Service Contracts

Civil Service appointments are made in accordance with the Civil Service Commissioners' Recruitment Code, which requires appointment to be on merit on the basis of fair and open competition but also includes the circumstances when appointments may otherwise be made.

The DPP, Keir Starmer QC, was appointed by the AGO for a period of three years from 1 November 2008 to 31 October 2011.

The Director of the Revenue and Customs Division, David Green QC, is on a fixed term contract until 31 March 2011. He was awarded a new CPS fixed term contract which runs from 1 January 2010.

All other officials covered by this report hold appointments which are open-ended and allow for retirement at the age of 60 or 65.

Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the CSCS.

Further information about the work of the Civil Service Commissioners can be found at www.civilservicecommissioners.gov.uk.

With the exception of the car and chauffeur provided for the official use of the Director of Public Prosecutions, the remuneration of all Directors, non-executive Directors and staff employed in the CPS is paid entirely in cash.

Salary and Pension Entitlements

The following sections provide details of the remuneration and pension interests of the most senior officials of the Department.

Remuneration (audited)

fye = full year equivalent salary

a) The Director of Public Prosecutions is provided with a car and chauffeur for official use. This is assessed by H M Revenue & Customs as constituting a benefit in kind. The estimated value of the benefit in kind received by Keir Starmer QC during the 2009-10 financial year was £11,015. Tax and National Insurance contributions on this sum, amounting to £9,693 are due to be paid on the Director's behalf by the CPS. The remaining Board members did not receive any benefits in kind.

b) Expenses are paid for all Non-executive Directors.

Salary

'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 taxable allowance to the extent that it is subject to UK taxation.

This report is based on payments made by the Department and thus recorded in these accounts.

Benefits in kind

The monetary value of benefits in kind covers any benefits provided by the Department and treated by HM Revenue & Customs as a taxable emolument.

Pension Benefits

Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements. From 30 July 2007, civil servants may be in one of four defined benefit schemes; either a final salary scheme (classic, premium or classic plus); or a whole career scheme (nuvos). These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus and nuvos are increased annually in line with changes in the Retail Prices Index (RPI). Members who joined from October 2002 could opt for either the appropriate defined benefit arrangement or a good quality 'money purchase' stakeholder pension with a significant employer contribution (partnership pension account).

Employee contributions are set at the rate of 1.5% of pensionable earnings for classic and 3.5% for premium, classic plus and nuvos. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings 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. Classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member's earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and, the accrued pension is uprated in line with RPI. In all cases members may opt to give up (commute) pension for lump sum up to the limits set by the Finance Act 2004.

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

The accrued pension quoted, is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus and 65 for members of nuvos.

Pension benefits (audited):

(a) Where an official ceased to act as a Board member during the year, the CETV shown is that at their date of departing the Board.

(b) Where an official has joined the Board during the year, the comparative CETV shown is that at their date of joining the Board.

Further details about the Civil Service pension 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 figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out within the guidelines and framework prescribed by the Institute and Faculty of Actuaries and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include 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.

Compensation for loss of office

John Graham left under Compulsory Early Retirement Terms on 31 December 2009. He received immediate payment of his pension and an associated lump sum plus a compensation payment of £37,493. When the compensation payment was made an element of "tapering" in line with CSCS rules was applied to the payment, reducing the amount payable. Following an amendment to those rules, a further payment of £21,226 was made through the CPS payroll. Additionally, Mr Graham received payments in lieu of notice totalling £59,745.

The cost of compensation to the CPS, as employer, may not be exactly the same as that paid out to the individual.

Pension for the Director of Public Prosecutions

Keir Starmer QC

Pension benefits are provided through a pension scheme which has the DPP as its only member. It has not yet been laid before Parliament. The Scheme is unfunded and the cost of benefits will be met by monies voted by Parliament each year. The pensions will be increased annually in line with changes in the Retail Prices Index or will remain the same as the previous year should the Retail Price Index be a negative figure.

The pension scheme provides benefits which broadly match the benefits provided under the Judicial Pension Scheme.