Human Resources Division

Financial matters

5.1 Institutions are expected to meet the full costs of successful Single Contribution Payments from Chest and non-Chest sources available to them, no additional budget will be provided. Heads of Institutions need to identify the funding source before making any proposal for a Single Contribution Payment. The award of Single Contribution Payments will not affect the individual's underlying grade or spine point.

5.2 The budget for UEF/Chest funded Contribution Increments is set each year by the Council and General Board. Each Awarding Authority has been allocated a share of the budget for the period 1 January – 31 July 2012. The budget of £196,000 including on-costs has been allocated in direct proportion to the salary costs of eligible Chest-funded staff currently in grades 1–11 in the Institutions within their remit. Provision needs to be made by institutions for bearing the costs in subsequent years. This budget will cover the award of Contribution Increments only.

5.3 The expectation is that awards made from non-UEF/Chest budgets should not exceed the relative percentage of the UEF/Chest budget allocation. For example, if the School/Faculty's total budget for Contribution Increments to be funded by the Chest is 5% of total eligible UEF staff expenditure, then it is expected that the total budget for Contribution Increments to be funded by non-Chest funds should be no more than 5% of total eligible non-UEF staff expenditure.

5.4 UEF/Chest funded proposals already approved outside the timetable will be a first charge on the relevant awarding authority's allocation for the current exercise.

5.5 The Council and the General Board expect institutions to meet the full costs, including on-costs, of successful proposals from sources available to them (whether UEF/Chest or other). Heads of Institutions need to identify the funding source before making any proposal for a contribution reward. The default assumption will be that funding will follow that of the current post.

5.6 The award of Contribution Increments from 1 January 2012 will not affect the underlying grade but members of staff will move to the appropriate higher point within their current grade. Contribution Increments awarded must not exceed the range of the current grade. Where the resulting salary is within the range of contribution points for that grade, there will be no automatic progression to the next salary point. If, however, the resulting salary is still within the range of the service-related grade points, the individual will continue to progress to the top of the service-related salary as normal. Please note, from 1 January 2010, the first contribution points on grades 2, 3 and 4 became service points i.e. point 25 is now the first contribution point in grade 2, point 30 in grade 3 and point 35 in grade 4.

5.7 The costing of all proposals must include on-costs. For contribution increments, the relevant calculation will be the difference between total basic salary plus on-costs at the proposed new grade point, compared with those of the current grade point as at 1 January 2012, as adjusted for part-time workers (but with no adjustment for atypical pension/NI arrangements). The total is multiplied by 7/12ths to calculate the in-year cost to be funded from the central budget (see 5.2 above). For single contribution payments, this will be 2% or 3% of the current salary as at 1 January 2012 to which should be added an assumed 10% for National insurance costs.

5.8 Grades and salary points, including on-costs, can be viewed online. For consistency it is recommended that the Cost Calculator spreadsheets below are used to calculate the costs of the contribution reward scheme.

5.9 Proposals outside the normal timetable should be costed according to the rate of pay effective at the proposed date of implementation.