Page 115 - Pharmacy Appeals 1/4/04 to 31/3/05

NHS Resolution Annual report and accounts 2021/22 91

Cash equivalent transfer values Fair pay disclosure
A cash equivalent transfer value (CETV) is the actuarially Reporting bodies are required to disclose the
assessed capital value of the pension scheme benefits relationship between the remuneration of the highest-
accrued by a member at a particular point in time. paid director in their organisation and the median
The benefits valued are the member's accrued benefits remuneration of the organisation's workforce,
and any contingent spouse's pension payable from the both for total remuneration and for basic pay.
scheme. A CETV is a payment made by a pension scheme
Total remuneration includes salary, non­
or arrangement to secure pension benefits in another
consolidated performance-related pay and
pension scheme or arrangement when the member leaves
benefits-in-kind. It does not include severance
a scheme and chooses to transfer the benefits accrued
payments, employer pension contributions and
in their former scheme. The pension figures shown
the cash equivalent transfer value of pensions.
relate to the benefits that the individual has accrued as
a consequence of their total membership of the pension The total banded remuneration of the highest-paid
scheme, not just their service in a senior capacity to director in NHS Resolution in the financial year 2021/22
which disclosure applies. The CETV figures and the other was £165,000-£170,000 (2020/21, £165,000-
pension details include the value of any pension benefits £170,000). This was 3.55 times (2020/21, 3.40) the
in another scheme or arrangement that the individual median remuneration of the workforce, which was
has transferred to the NHS pension scheme. They also £47,716 (2020/21, £49,198). The 25th percentile
include any additional pension benefit accrued to the remuneration of 4.31 (2020/21,4.30) was £39,374
member as a result of their purchasing additional years of (2020/21, £39,464), which represents the lowest
pension service in the scheme at their own cost. CETVs quartile of remuneration in the organisation, and the
are calculated within the guidelines and framework 75th percentile remuneration of 2.81 (2020/21, 2.82)
prescribed by the Institute and Faculty of Actuaries. was £60,316(2020/21, £60,058), which represents the
upper quartile of remuneration in the organisation.
Real increase in CETV
The basic pay remuneration of the highest-paid director
This reflects the increase in CETV effectively funded
in NHS Resolution in the financial year 2021/22 was
by the employer. It takes account of the increase
£160,000-£165,000 (2020/21, £160,000-£165,000).
in accrued pension due to inflation, contributions
This was 3.55 times (2020/21, 3.87) the median
paid by the employee (including the value of
remuneration of the workforce, which was £45,524
any benefits transferred from another scheme or
(2020/21, £41,723). The 25th percentile remuneration
arrangement) and uses common market valuation
of 4.73 (2020/21, 5.15) was £34,172 (2020/21
factors for the start and end of the period.
£31,365), which represents the lowest quartile of
Compensation on early retirement remuneration in the organisation, and the 75th
or for loss of office percentile remuneration of 3.04 (2020/21,3.13) was
£53,219 (2020/21, £51,268), which represents the
There were no early retirements or other
upper quartile of remuneration in the organisation.
exit arrangements for directors during the
reporting period. This is subject to audit. In 2021/22, no employee received remuneration in
excess of the highest-paid director (2020/21, was zero).
Payments to past directors
Remuneration bands ranged from £20,000-£25,000
There were no payments made to past to £165,000-£170,000 (2020/21, £20,000-£25,000
directors. This is subject to audit. to £165,000-£170,000). There has been no year-
on-year change in the remuneration banding of
the highest paid director. The percentage change in
salary and allowances is 3.89%. This reflects both
the pay award of 3% and the increase in average
workforce by 100 FTE at an average remuneration
lying between the median and the upper quartile.

The fair pay disclosures are subject to audit.