Department of Premier and Cabinet
Category
Premier's Memorandum
Identifier
M2002-19
Status
Archived

M2002-19 2002 Annual Determination of Remuneration for Chief Executive and Senior Executive Service

Description:

Supersedes M2001-13. Superseded by M2003-12

2002 Annual Determination of Remuneration for Chief Executive and Senior Executive Service

The Statutory and Other Offices Remuneration Tribunal has made its annual determination in relation to the Chief Executive Service and Senior Executive Service.

In summary the Tribunal has determined a general increase of 4.3% to SES remuneration packages. All increases are subject to satisfactory assessment of performance.

In recent years, an overlap has developed between the maximum of each remuneration level and the minimum of the next. To eliminate this overlap, the Tribunal has determined new minimum rates for SES levels 2-8. While these new minimum rates have been increased by more than 4.3%, officers whose current (2001) remuneration package falls below the new minimum for their SES level will not benefit from an automatic adjustment to the new minimum rate. Subject to satisfactory performance, their remuneration should be increased by 4.3%. Where a Minister (in the case of a CEO) or CEO considers that such an SES officer's performance merits an increase higher than 4.3%, the approval of the Director General of Premier's Department needs to be obtained.

Recruitment and Retention Allowances and the opportunity to progress along the remuneration range, in certain circumstances, will continue under the arrangements provided for in the 2001 Determination.

The Determination was published in the Government Gazette of 13 September 2002 and takes effect from 1 October 2002. It is available on the internet at http://www.remtribunals.nsw.gov.au

Attached for your information is a copy of the administrative guidelines that advise how the Determination should be implemented. It should be noted that State Owned Corporations are not covered by this Determination.

Enquiries concerning the implementation of the Determination should be made to the Premier's Department contact officers as specified in the attached guidelines.

(signed)

Bob Carr Premier

Superseded by M2003-12

_______________________________________________________

IMPLEMENTING THE 2002 SOORT DETERMINATION OF REMUNERATION FOR THE CHIEF EXECUTIVE AND SENIOR EXECUTIVE SERVICE

Administrative Guidelines

The Statutory and Other Offices Remuneration Tribunal (SOORT) has made its annual determination in relation to the Chief Executive and Senior Executive Service. In these Guidelines the Chief Executive and Senior Executive Service are referred to as the “SES”.

These Guidelines describe the administrative and remuneration arrangements that are to apply to the SES on and from 1 October 2002. They should be read in conjunction with the 2002 SOORT Determination for the Chief Executive and Senior Executive Service that is available at www.remtribunals.nsw.gov.au

The 2002 Determination continues to carry forward a number of arrangements provided for under previous SOORT Determinations. Section 2 of these Guidelines, which outlines these arrangements, should be read in conjunction with previous Determinations.

Premier's Department Circular 2000-50 should also be referred to when implementing the SOORT Determination. The Circular advises that all CES and SES officers are required to have a Performance Agreement in place. The Performance Agreement and annual review form the basis of any remuneration increase in the implementation of any SOORT determination. Performance reviews are to be undertaken at least annually by the officer's employer or some other person nominated by the employer.

SECTION 1: CALCULATING REMUNERATION INCREASES

SOORT has determined a general increase of 4.3% to the remuneration packages of SES officers on and from 1 October 2002.

Any decision to grant an increase determined by SOORT must be based on a formal assessment of the officer's performance as being of a satisfactory standard. 

Table 1. New annual rates effective from 1 October 2002

SES Level Minimum Maximum______________________________________________1 $117,000 $137,0002 $137,000 $147,0003 $147,000 $167,0004 $167,000 $182,0005 $182,000 $210,0006 $210,000 $236,0007 $236,000 $296,0008 $296,000 $342,000______________________________________________ 

In determining the remuneration ranges, the Tribunal has eliminated the overlap between the maximum of each level and the minimum of the next. This has resulted in an upward adjustment of more than 4.3% to the new minimum rates for SES levels 2-8.

To ensure that no affected SES officer receives a windfall benefit as a result of the new minimum rates, special conditions have been determined by the Tribunal:

  • Officers whose current (2001) remuneration package falls below the new minimum for their SES level will not be adjusted automatically to the new minimum rate. Their remuneration should, subject to satisfactory performance, be increased by 4.3 per cent.
  • Where a Minister (in the case of a CEO) or CEO considers that such an SES officer's performance merits an increase totalling more than 4.3 percent during the twelve months to 30 September 2003, the approval of the Director-General of Premier's Department will need to be obtained. Such requests should provide clear justification for the movement, based on a rigorous assessment of the officer's performance, and meet one of the criteria currently applied to movement within the remuneration range (see Section 2b of these Guidelines for further details).

The new minimum rates apply to both new appointments and reappointments made after 1 October 2002.

With the adjustment and rounding necessary for setting the new remuneration ranges, some of the new maximums fall slightly below the 4.3% increase granted. This issue will be raised with the Tribunal for consideration during the course of the 2003 Annual Review.

SECTION 2: CONTINUING PROVISIONS

a. Recruitment and Retention

Two separate Allowances are provided to manage issues of attracting and retaining suitably qualified officers within the public sector. These are the Recruitment Allowance and the Retention Allowance.

The payment of the Recruitment or the Retention Allowance can be made only following approval by the Director-General of Premier's Department based on a recommendation of the Minister (in the case of CEOs) and the CEO (in the case of SES).

Subject to approval of an Allowance, Ministers and CEOs may determine the quantum of the Allowance up to the maximum for the level of the position as shown in Tables 2 and 3 below. These rates remain unchanged from the 2000 Determination.

SES officers in receipt of specialist market rates or a Recruitment and Retention Allowance prior to the 2000 Determination continue to receive their allowances for the remainder of their current appointment.

If an officer's appointment is renewed approval for the payment of an Allowance must be sought again before it is paid.

i) Recruitment Allowance: from the commencement of a term of appointment

A Recruitment Allowance may apply for newly appointed SES officers and for current SES officers if they are re-appointed at the expiration of their current term. It will apply where it has been certified that specific capabilities are necessary for recruitment purposes and the performance of the duties of the position. The Tribunal has not specified which capabilities should be recognised by the Allowance.

The changing working environment and labour market continues to see the need for new capabilities additional to those previously identified. The changing labour market also may make it difficult to attract suitably qualified candidates to a position. Accordingly Ministers (in the case of CEOs) and CEOs (in the case of SES) may, where appropriate, seek approval to offer a Recruitment Allowance. Table 2 below provides the annual rates of the Recruitment Allowance at different SES levels.

Table 2. Recruitment Allowance annual rates available from 1 October 2002 

SES Level Maximum Allowance______________________________________ 1 and 2 Up to $12,5003 and 4 Up to $15,5005 and 6 Up to $26,0007 and 8 Up to $30,000_______________________________________ 

Issues to be addressed when seeking approval from the Premier's

Department:Current difficulties in recruiting and retaining SES officers

  • Patterns of responses to advertising/recruitment for particular positions
  • Limitations in the number of potentially qualified applicants

Impact on project/programs (eg. turnover costs, delays) through non selection

  • Recruitment practices
  • Variety of recruitment options that have been canvassed

Current state of labour market

  • Current state of labour market and the need to increase the agency's competitiveness through offering market related remuneration
  • Current market remuneration for comparable skills and experience

Requirement to achieve results

  • Specific specialist, professional qualifications and/or experience in the nominated area that is considered an essential requirement for achievement of the position's objectives.

The criteria outlined above should not be varied. However, where exceptional circumstances warrant special consideration, it is appropriate to liaise with the Director-General, Premier's Department with a view to resolving particular difficulties.

Once the quantum has been determined it cannot be altered during the term of the officer's current appointment unless the Director-General, Premier's Department gives approval.

Where approval is given to increase the Allowance during the term of the appointment, the increased portion of the Allowance is payable from the date of approval to increase

ii) Retention Allowance: during the term of the appointment

A Retention Allowance may be approved to officers during the term of their current appointment.

The Retention Allowance accrues on an annual basis (and prorata for incomplete years) and is not payable until the completion of the officer's appointment.

In this context the “completion of the officer's appointment” is defined as:

  • an officer's term of appointment expires; or
  • the officer retires from office; or
  • the officer is removed and unattached from the position pursuant to s.77 of the Public Sector Employment and Management Act 2002 (PSEMA) and subsequently appointed to another position; or
  • an officer's unattachment is revoked pursuant to s.77 of the PSEMA; or
  • the officer is appointed to another SES position within the NSW public sector. This includes appointments at a higher level and transfers; or
  • an officer dies.

The Allowance will not be available where an officer resigns or is removed from office pursuant to s.51 of the PSEMA. An Allowance should also not be paid if the officer's performance has been less than satisfactory.

Table 3. below provides the annual rates of the Retention Allowance at different SES levels. 

Table 3. Retention Allowance annual rates available from 1 October 2002

SES Level Maximum Allowance_______________________________________ 1 and 2 Up to $12,500 3 and 4 Up to $15,5005 and 6 Up to $26,0007 and 8 Up to $30,000_______________________________________ 

Issues to be addressed when seeking approval from the Premier's Department:

Current difficulties in retaining SES officers

  • Impact on project/programs if the officer leaves the position (eg. delays in achieving outcomes, loss of unique or specific capabilities and experience, turnover costs)
  • Evidence of turnover that has adversely affected the agency's programs, if applicable.

Current state of labour market:

  • Current state of labour market and the need to increase the agency's ability to make a competitive counter offer.
  • Current market remuneration for comparable skills and experience.

Requirement to achieve results:

  • The officer's specific specialist, professional qualifications and/or experience in the nominated area that is considered an essential requirement for achievement of the position's objectives.

The criteria outlined above should not be varied. However, where exceptional circumstances warrant special consideration, it is appropriate to liaise with the Director-General, Premier's Department with a view to resolving particular difficulties.

All submissions are to be made to the Director-General, Premier's Department. Once the quantum has been determined it cannot be altered during the term of the appointment without further approval from the Director-General, Premier's Department. Where approval is given to increase the Allowance, the increased portion of the Allowance accrues from the date of approval to increase.

iii) Determining the remuneration increases for officers currently in receipt of a Recruitment and Retention Allowance

The total remuneration package of these officers consists of two components - the base remuneration and an Allowance. Increases granted as a result of the annual determination (increases up to 4.3% from 1 October 2002 or progression along the range) apply to the base remuneration only).

iv) Financial advice

Where approval is given to pay a Recruitment or a Retention Allowance the SES officer is advised to seek independent financial advice regarding their financial arrangements including superannuation arrangements and future taxation obligations.

v) Payment of allowances to Chief Executive Officers

Requests for the payment of allowances to Chief Executive Officers should continue to be made to the Director-General of the Premier's Department.

b. Discretion to alter remuneration within the range

Ministers (in the case of CEOs) and the CEOs (in the case of SES) have the authority to determine any progression along the range for SES officers whose current (2001) remuneration package is at or above the new minimum for their SES level.

Ministers and the CEOs may determine the rate of remuneration for officers within the new range on appointment. SES officers can progress along the range within each remuneration level during the term of their appointment.

Any decision to progress an officer's remuneration along the range should be based on a rigorous assessment or evaluation. Such a decision may only be made at the time of a performance review. Performance reviews must be undertaken at least annually.

In making these decisions the matters to be considered must include either:

  • An officer's performance which over time has significantly contributed to the agency meeting its corporate objectives and outcomes as outlined in the agency's business plan; or
  • An officer's increased competence and effectiveness as assessed in the performance review process; or
  • Any expanding job requirements (where a position's work value has increased but not sufficiently to result in the position being evaluated at a higher level).

SECTION 3: FURTHER ENQUIRIES

SES officers should contact their agency SES Administrator if they have any enquiries.

SES Administrators may direct their enquiries to:

Susan Shaw, 9228 5461 (Tues-Thurs)Francine Cutler, 9228 3586 (Mon-Wed)Judith Withers, 9228 5514Megan Irwin-Moyle, 9229 3023Hayley Eggleston, 9228 4525