Public Service Commission

Type:
Public Service Commissioner Direction
Identifier:
PSCC 2017 04
Status:
Archived

PSCC-2017-04 Increase in Executive Remuneration Determinations of the Statutory and Other Offices Remuneration Tribunal

Description

  • The Statutory and Other Offices Remuneration Tribunal (SOORT) has determined an increase of 2.5 per cent to remuneration packages provided to Public Service senior executives and to former senior executives who are subject to the Chief and Senior Executive Service determination effective 1 July 2017.
  • The determinations were published in the Government Gazette of 1 September 2017 and are also published on the NSW Remuneration Tribunals’ website.
  • The NSW Public Service Senior Executive Remuneration Management Framework has been updated to reflect the SOORT increase.

Detailed Outline

2017 Annual Determinations  

SOORT’s 2017 annual determinations for Public Service senior executives (PSSE) and the Chief and Senior Executive Service (SES) made under the Statutory and Other Offices Remuneration Act 1975 (SOOR Act) provide for an increase of 2.5 per cent effective on and from 1 July 2017.   The determinations are available on the NSW Remuneration Tribunals website.

Public Service senior executives

SOORT’s annual determination for PSSEs is made under Part 3B, section 24O of the SOOR Act and applies to the Secretary of a Department and any other PSSE to whom Division 4 of Part 4 of the GSE Act applies (other than those subject to the transitional arrangements in Schedule 4 to the Act).

PSSEs are employed in one of four bands specified in the Government Sector Employment (Senior Executive Bands) Determination 2014. Under section 40(1) of the Government Sector Employment Act 2013 (GSE Act), the remuneration package of a PSSE must be within the range determined under the SOOR Act for the band in which the executive is employed.

The determination includes a number of different remuneration packages that apply to particular senior executives named, some of which receive a discretionary remuneration range of up to 12 per cent in addition to the specified base remuneration package.

The discretionary payment of up to 12 per cent is a one-off payment relating to performance and does not alter the base remuneration package for future determinations.  The payment of the discretionary amount (if any) is based on the base total remuneration package for the period to which the performance assessment relates. For example, payment of up to 12 per cent for performance in the 2016/17 year should be calculated on the base remuneration package specified in the SOORT determination effective on 1 July 2016, or a later relevant determination. For reporting purposes the total amount (base remuneration package plus one-off discretionary payment) should be reported in the year corresponding to the date of payment with an explanatory note.      

Chief and Senior Executive Service

SOORT’s annual determination for the SES is made under Part 3A, section 24C of the SOOR Act, and applies to executives to whom transitional arrangements under the GSE Act continue to apply.

Schedule 4 to the GSE Act includes transitional arrangements relating to the remuneration of former SES executives.  These transitional arrangements provide, amongst other things, for the following executives to have their remuneration packages increased as a result of a determination of the SOORT under Part 3A of the SOOR Act:

  • persons continuing in office as Secretaries of Departments (clause 6(2))
  • persons continuing in office as heads of Public Service agencies that correspond with pre-GSE Act Government Service Divisions (clause 7(2))
  • persons holding office as heads of other Public Service agencies (clause 7(5))
  • statutory officers (clause 8A(1)).

The SOORT determination does not affect existing Recruitment or Retention Allowances.  Employees in receipt of these allowances continue to receive them in accordance with Schedule 4, clause 8B of the GSE Act, at the quantum for which they were originally approved. Other than as provided for in these transitional arrangements, Recruitment and Retention Allowances are no longer available.

2017-18 NSW Public Service Senior Executive Remuneration Management Framework

The NSW Public Service Senior Executive Remuneration Management Framework (Framework) applies to PSSE bands 1, 2 and 3. The discretionary ranges and the formulas for each job evaluation methodology have been updated to reflect the 2.5 per cent increase in the 2017 SOORT determination (Refer to part 4.3 and Appendix 1). The information in respect to transitional arrangements that continue to apply to some individuals has also been updated (Refer part 4.8). As the Framework has been operational for several years the contents have been consolidated and a business process included.

Further information

Employees should contact their agency’s HR contacts in the first instance for further information about the application of the SOORT’s annual determinations. Agency HR contacts can contact the Public Service Commission with any enquiries using the contact details at the end of this Circular.

 

Graeme Head
Public Service Commissioner

Act

Government Sector Employment Act 2013

Government Sector Employment (Senior Executive Bands) Determination 2014

Statutory and Other Offices Remuneration Act 1975

Overview

Who needs to know and/or comply with this?

Departments
Executive agencies related to Departments
Separate agencies

Compliance

Not Mandatory

Contacts

Contact
Phone
Publishing Entity
Public Service Commission
Issuing Entity
Public Service Commissioner