NEM Quick Reference Guide

Transcription

1 Armed Forces Reform Explained NEM Quick Reference Guide For those in command Your Service, Your Career, Your Life-Style. January 06

2 Foreword It is important that the offer we make to our Service men and women is sufficiently attractive to recruit and retain the right people to deliver our operational capability. While that offer is very broad, it is no surprise that pay is a key element, and an important consideration for Service personnel, their families, and for Defence as a whole. Over the years, Service personnel have highlighted concerns with the current pay model to the Armed Forces Review Body (AFPRB). The New Employment Model (NEM) has therefore reformed the core pay model for Other Ranks and for Officers up to and including Star (Commodore / Brigadier / Air Commodore). It will go live on Apr 6. What will the NEM pay model look like? Defence staff have worked with the Service Chiefs to establish a new pay model that addresses Service personnel s concerns whilst continuing to meet the needs of the Armed Forces. The new pay model was also discussed during the recent Strategic Defence and Security Review; it was agreed that the military pay model would be protected, that existing pay resources would be rebalanced and that it would not become a savings exercise. Rank continues to be the primary determinant of pay; incremental progression has been maintained. In addition Other Ranks will receive a trade-related supplement to pay, with placement in supplements based on extensive Job Evaluation evidence. This will provide a pay model that is simpler and more transparent than 000, is able better to target pay, and is more efficient. It also addresses key areas of Other Ranks dissatisfaction with the 000, including elements known as flip flop, pay overtaking, and overlap, the details of which are described in this booklet. Retargeting resources within the pay structure has required some difficult decisions. Defence has recognised the need to protect those whose pay might otherwise decrease immediately on transition to the new model; additional investment has therefore been allocated to provide pay protection for at least years. In the long term, the through-career pay for approximately two thirds of Other Ranks will either increase or remain broadly the same relative to 000. This booklet provides detail on the new model and, using pay rates based on the 0/6 pay budget, provides indicative rates to allow Service personnel to understand how the new pay model is likely to affect them. The actual 06/ pay rates will be published separately, once the Government has considered the AFPRB s recommendations in the Spring. This booklet is concise, informative, and is designed to be read by every Service man and woman. It is not just for the HR specialist. I commend it to you. n General Sir Nicholas Houghton Chief of the Defence Staff

3 Contents Foreword What is this booklet for? Who is affected? What is changing? Why are we changing your pay? 6 The New Model 6 Transition Arrangements 8 Phase On Implementation 8 Phase Beyond Implementation 8 Calculating your new pay 0 Will I still receive Annual Awards? Where can I get further information? Glossary of terms Annex A. Trade Supplement Placement Tables Annex B. Incremental Progression Steps Other Ranks 0 Annex C. Incremental Progression Steps Officers 8 Annex D. The Job Evaluation Process Explained 0 Annex E. Other Ranks Indicative Rates 0/6 Annex F. Officers Indicative Rates 0/6 Annex G. New Calculation Template What Is This Booklet For? This booklet is intended to fulfil key purposes: To provide information about the new pay structure and changes to core pay that will be introduced as part of the NEM on April 06. To explain transition i.e. how you will be transferred from the current pay model (000) to the NEM pay structure. To be used as a reference guide to explain how the new pay structure works, and how you will move through the new pay structure. Who Is Affected? The new pay model will apply to all Regular and Reserve personnel on the Main Spines up to and including the rank of OF6 (Commodore / Brigadier / Air Commodore). Special Forces, Nurses, Royal Navy Clearance Divers, and the Military Provost Guard Service will continue to have bespoke pay spines but the incremental structures of the ranges have been adjusted to mirror those of the main pay tables. It will not apply to personnel paid from the Professional Aviators, Medical and Dental Officers, Chaplains and Veterinary Officers Bespoke Spines. Some specialist groups have separate pay structures, known as Bespoke Spines. What Is Changing? NEM Reform applies to basic pay. The table below shows how pay is the basis of the military salary onto which other layers of non-pensionable remuneration are added. is principally determined by rank. It provides the majority of salary and is the basis for calculating pension entitlement. Allowances, and Recruitment and Retention ments are unaffected by NEM Reform. n Service Personnel Remuneration Package Allowances (Enduring or temporary) (Non Pensionable) Targeted Additional Reward (One off: Financial Retention Incentives (FRIs), Golden Hellos (GHs) (Non Pensionable) Targeted Additional Reward (Enduring recruitment and retention payments) (Non Pensionable) Rank Based (All ranks) + Trade Supplement (Other Ranks only) + X-Factor (Pensionable)

4 Why Are We Changing Your? It is important that we have an employment model which meets the expectations of the new generation of Service personnel and allows Defence to recruit the right mix of capable people whilst meeting its operational commitments. The NEM programme was established as a vehicle to develop this modernised offer, by reviewing the current Terms and Conditions of Service for Service personnel. The new pay model provides a system of pay that is simpler and more transparent, making it far easier for an individual to understand their likely pay journey through their career. It is able to target specific trades, and is therefore an aid to retention. It will address key areas of Other Ranks dissatisfaction with the current pay model. n Issues With 000 Flip-Flop - where individuals move between pay bands when promoting, resulting in them often having to be placed on a Stand Still Rate of or on an incremental level that does not match their seniority, reducing the number of increments available to them. Overtaking - whereby individuals overtake other Service personnel within the same trade and rank who were promoted earlier, and who have more experience within that rank. Overlap - where an individual on the upper Increment Level for their rank might have the same, or a greater level of pay, than a colleague in the same trade in the next higher rank. The New Model The new pay model applies to both Officers and Other Ranks. X-Factor remains unchanged at the Government approved rates recommended by the AFPRB. Incremental Progression will be retained, though the number of Increment Levels is reduced across all ranks. The proportion of pay allocated to each rank range in 000 has been maintained within the new pay model. This ensures that one rank range is not advantaged at the expense of another: i.e. the proportion of pay allocated to junior rates/ ranks remains the same in both models. Trade Supplement Placement For Other Ranks, whilst rank remains the key determinant of pay, the High & Low pay bands will be removed and replaced with supplements to which trades will be allocated. This allocation has been informed by Job Evaluation (JE). Trade Supplements will apply on a through career basis and, like pay, are pensionable. The Supplement will apply at all ranks within a trade. This will provide greater transparency of the pay structure and enable people to better predict, and understand, their through career pay journey. From April 6, pay statements will change to show how pay is calculated: Rank Based + Supplement + X-Factor = How are trades allocated to a supplement? Trade Supplement Placement (TSP) is based on JE evidence. The JE process used by the Armed Forces is one which examines representative posts from the various trades, and assesses each one against a set of 6 criteria or factors, ranging from Knowledge, Skills and Experience (Factor ) to Working Conditions (Factor 6). The first factors used to determine JE scores are widely used and recognised by industry; Factor 6 is slightly different in that it is designed to reflect the often unique environments within which Service personnel operate. Under the new pay system, a Whole Trade Score is applied on a through career basis. This means that all ranks within a Trade are in the same Supplement. This delivers the key benefit of removing situations when flip-flop or overtaking can occur. Details of the allocation of trades to supplements for each of the Services can be found in the Trade Supplement Placement tables at Annex A. As part of the simplification of pay, the Services have also simplified trade structures; full listings of trades including legacy trade titles are being published by each Service. Incremental Progression Due to the special requirements of the Services to work through the ranks, Incremental Progression will remain a feature of the Services pay structures. The total number of increments will reduce compared to 000, and personnel will remain on Increment Level for the first years in rank. This is in recognition of the time it takes to gain experience in each rank. In accordance with the design principle that the proportion of pay within each rank range is maintained, the savings have been reinvested within each rank. For Other Ranks, the end of Flip Flop and the removal of Overlap from pay rates will actually give many personnel access to more Increment Levels, because the vast majority will now move to Increment Level of their new pay range on each promotion. Tables showing the construction and Incremental Progression steps of the new pay model can be found at Annex B (Other Ranks) and Annex C (Officers). An expanded explanation of JE can be found at Annex D. n Rates The exact Rates for April 06 will not be available until the Government has considered the recommendations of the AFPRB. Normally, this process concludes in March of each year, with the rates being published for the Financial Year at the end of March. Therefore Indicative Rates have been constructed that show what the pay rates would be if the new pay model 6

5 were applied using representative 0 figures. These are indicative pay rates only April 06 pay rates will be published in late March 06. The Indicative Rates for Other Ranks and Officers paid from the Main spine are at Annexes E and F. For Other Ranks, these Rates show that rank will remain the key determinant of pay. Indicative pay rates for those other pay spines that have been amended to reflect the increment level changes of the new pay model are available on the Defence Intranet. n Transition Arrangements No one will take a pay cut on transition to the new pay model. Transition will have parts: firstly what happens on day one of the new model, and secondly what happens to pay in future years under the new pay model. The transition arrangements are the most complex elements of introducing pay reform and require the transfer of more than 0,000 Service Personnel, regular and reserves, from one pay structure to another. The section below examines each of the parts in turn, explaining what will happen in terms of pay. Transition (Part ) On Implementation On implementation, personnel will be placed on the first Increment Level within the new pay model appropriate to their rank (and, if noncommissioned, Trade Supplement) that has a value equal to or higher than their level of pay under 000 pay arrangements. This means that on transition, seniority in rank may not match with the Increment Level. In some cases individuals may find that their current (000) rates of pay are higher than the top new increment for their particular rank/trade. In such cases, on transition to the new pay model, the rate of pay for these individuals will remain the same as 000 values. Transition (Part ) Beyond Implementation Once transitioned into the new pay model at a pay level greater or equal to existing pay rate, personnel will find themselves in one of two broad groupings: the new pay rate for their seniority (and supplement if noncommissioned) will either be higher or, lower than in 000. As shown in the diagram, in simple terms, personnel with a current 000 rate below the new pay model rate for their seniority will be raised to the first new pay model rate above their current pay, and those personnel with a 000 rate above the Increment Level for their seniority in the new model will be pay protected at their current pay value. New Model Increment Value is above 000 Value. Some Service personnel will have transitioned to a new pay increment Overview of Transition 000 pay level 000 pay level 000 GO-LIVE Apr 6 that is higher than under 000 arrangements. Part of transition will have placed them on the first increment that is equal to or higher than their 000 rate. If they have sufficient seniority in that rank, then they will move to the next new model increment at their next Incremental Base Date (the date upon which an individual s incremental pay started within a rank). These rules are the same rules as used in 000. If they do not have sufficient seniority, they will remain on the same new model increment until they do have sufficient seniority. Past seniority in rank will be counted when determining if an individual is placed on Year or Year of the two increments with the same value within each rank. } Protection on transition NEM Increment } 000 greater than NEM - Rate Sustained Gain on transition NEM Increment 000 less than NEM - Rise to NEM Rate NEM NEM Increment Time New Model Increment Value is below 000 Value. For some personnel the new pay increment value will be lower than their 000 value. Part of transition will have placed them on the first increment that is equal to or higher than 000. These personnel will remain on this pay level until the new pay model pay rates for their seniority catch up to a point where Incremental ments should recommence. The year (but not the day and month) of the Incremental Base Date of these personnel will be automatically amended to reflect the period that they will stand still. These personnel will be entitled to any Government approved pay award. 8 9

6 If the new pay model increment pay value (with Trade Supplement) is of greater value than their 000 value then such personnel will be kept on their current pay value (though they will receive any Government approved pay award) until the new pay rates for their seniority is such that Incremental ments should recommence. This Protection does not mean these personnel retain 000 increments. Instead, it means that these personnel will not suffer a pay cut. This Protection will remain in force for at least years, when almost all of these personnel will have recommenced incremental pay, been promoted or left the Services. Changes to Incremental Base Dates. During the transition to the new pay model, some Service personnel will see that their Incremental Base Date has been adjusted. The Day and Month data will remain unchanged so when these individuals become eligible for an annual increment, they will still receive an award on their IBD Day and Month (i.e. Jan). Why are we adjusting the year on the IBD? On transition, there will be a number of personnel who will have an historical IBD from 000 that greatly exceeds what the year should be for their new Increment Level in the new pay model. The IBD will therefore be adjusted for all cases where the new Increment Level is lower than the time spent in the rank. The day and month of the IBD will remain unchanged, and only the year will be amended. n Calculating Your New To calculate your new pay from the April 06 you will need to know your Rank, current gross pay and, for Other Ranks, the Supplement for your Trade as shown in Annex A. There is a template at Annex G to this booklet which should help you to identify how your pay will be affected based on the 0 indicative pay rates. For Officers Identify your rank and salary, and then look up the Indicative Scales at Annex F. You will move to the increment which either matches or exceeds your current pay. For Other Ranks Identify your rank and salary range for the supplement for your Trade. Then look up the table at Annex A. If your current salary is below the pay scales listed you will move to the first increment for your rank on the pay scale. If your salary sits within the pay scales listed you will move to the increment which either matches your current pay or if no increment matches then the first increment above your current pay value. If your current pay rate is above the new pay scales for your seniority then you will move to a Stand Still Rate of, until you are promoted or the maximum pay rate for your rank, seniority and Supplement is increased to above your current pay. Will I still receive Annual Awards? The role of AFPRB in recommending pay rates for Service personnel will continue and any agreed annual pay award will continue to be payable to all Service personnel. n What will happen to my pension? The Armed Forces Pension Scheme rules will not change as a result of the new pay model. Pensions will continue to accrue and will be awarded based on the rules of each scheme. In summary these are calculated as: AFPS : the total value of the individual s pension pot, which is /th of each year s salary while in AFPS ; AFPS 0: a SP s length of service and final salary on leaving; AFPS : a SP s length of reckonable service and their final rank on leaving. For those with service in both AFPS and an earlier scheme, their accrued rights are as previously described in the relevant AFPS DINs. n Can I use the pensions calculator to forecast the impact of pay on my pension? Not yet, the calculator will not reflect the new pay rates until it is updated. We are working with DBS to update the calculator, but this may not be available before July 06. n Where can I get further information? If you have any questions or require any further help please discuss with your NEM Champion or Unit HR in the first instance. n 0

7 Glossary of Terms Armed Forces Review Body (AFPRB) Financial Retention Incentive (FRI) Job Evaluation (JE) Incremental Base Date (IBD) Management Discretion (MD) Protection An independent Body which provides advice to the Prime Minister and the Secretary of State for Defence on the remuneration and charges for Service Personnel. pay is the element of remuneration that is determined by rank and experience. It includes X-Factor and is pensionable. A taxable, non-pensionable, lump sum payment that may be used to address critical personnel shortages. Such payments are conditional on an individual commitment to a specified period of further service. Job Evaluation: a method of assessing the roles, skills and responsibilities of different trades. The JE process results in a numerical Whole Trade Score (WTS) which enables relative valuing of different trades. An Incremental Base Date is the date upon which, in normal circumstances, the yearly incremental progression is awarded. This date is calculated initially from the date of enlistment and thereafter normally changes on the effective date of promotion to a subsequent higher paid rank. A mechanism which, in exceptional circumstances, can over-rule JE WTS to determine which Supplement a Trade is placed within for pay purposes. protection is a mechanism to ensure that no individual will take a cut in pay on transition. This will either be through Stand Still Rate of or Specially Determined Rate of. Recruitment & Retention ment (RRP) Specially Determined Rate of (SDRP) Standstill Rate of (SSRP) Trade Supplement(s) JE Through-Career Whole Trade Score (TC WTS) A taxable, non-pensionable, monthly payment that is made to certain groups such as pilots and divers to mitigate particular retention issues. It may be paid on a continuous or non-continuous basis. This is a rate of pay that does not exist on the main pay tables. It usually applies to those people who for whatever reason are being paid at a rate that is higher than the normal entitlement for their rank and Trade. SDRP attracts any Government approved annual pay award. This is a rate of pay that exists on the main pay table but that is higher than that to which the individual is entitled. The individual would remain on this rate of pay until their time in rank catches up or until they are promoted. SSRP attracts any Government approved annual pay award. For Other Ranks a trade will be allocated to a pay supplement according to its throughcareer Whole Trade Score. All Other Rank personnel will be placed in one of the supplements which will be paid in addition to core pay. The supplements are pensionable and attract X Factor. A trades through-career Whole Trade Score is derived from the scores of each rank within the trade. Defence Statistics devised a methodology, that was approved by the Service Chiefs, whereby a score could be produced for each trade that allowed a relative comparison to be made between them.

8 Annex A: Trade Supplement Placement Tables Supplement Aerospace Systems Operating and Air Traffic Control including Aerospace Systems Operator/Manager, Flight Operations Assistant/Manager Army Welfare Worker Custodial NCO AHP Dental Nurse RN/RM Family Services Firefighter AHP Health Care Assistant RN/RM Hydrography & MET (including legacy NA(MET)) Logistics (Caterer) including Logistics (Catering Manager) Logistics (Chef) including Logistics (Catering Manager (Chef )) RN/RM Logs (Steward) inc SM RN/RM Logs (Chef) inc SM (including Catering Services) Logistics (Driver) Logistics (Supplier) RN/RM Logs (Writer) inc SM ME Trade Gp Mil Pol (GPD) Mil Pers Admin Musician Musician RN/RM Naval Airman (Phot) Personnel (Support) Photographer RN/RM PTI R Sigs Gp RN/RM RN/RM RA Command Systems RA Logistics RA Strike RAPTC Instr Medic Physical Training Instructor RAVC Dog Trainer RAVC Veterinary Tech Regulator REME Tech Support Spec RLC Chef RLC Driver RLC Dvr Comms Spec RLC Dvr TK Tptr RLC Laundry Op RLC Log Spec (Sup) RLC Pet Op RLC Photographer RLC Pioneer RLC Port Op RLC Postal & Courier Op RLC System Analyst RLC VSS RM Musician

9 Annex A: Trade Supplement Placement Tables (contd) RN/RM Supplement AAC Groundcrew Sldr Air Cartographer Crew man AHP AHP Comms Inf Sys inc SM & WS Dental Hygienist Dental Technician Aircraft Engineering (Weapon) including Engineering Technician Weapon and Weapon Technician General Engineering including General Engineering Technician, General Technician Electrical, General Technician (Mechanical) and General Technician Workshops Gunner Regiment Information and Communications Technology Communications Infrastructure Technician/Manager Information and Communications Technology Technician/Manager Infantry Instructor SASC RN/RM Logs (Supply Chain) inc SM Logistics (Mover) ME GEO & Trade Gp Mil Pol (SIB) RN/RM Mine Warfare RN/RM Naval Airman (AH) RN/RM Naval Airman (SE) AHP Pharm Tech RA GW RA SPEC OP RA Targeting RA TUAS Pilot RA UAS R Sigs Gp B R Sigs Gp Police REME Armourer REME Metalsmith REME Rec Mec REME Shipwright REME VM RLC Air Desp RLC Mariner RLC Mov Con RLC Mov Op RN/RM RM GD SQ RN/RM RM MESM, Mech & Tech RN/RM Seaman Spec Survival Equipment Fitter RN/RM Warfare Spec Non-Commissioned Aircrew - Weapon Systems Operator 6

10 Annex A: Trade Supplement Placement Tables (contd) Supplement Aircraft Engineering (Avionics) including Aircraft Engineering Technician, Aircraft Technician (Avionics) and Aircraft Maintenance Mechanic (Avionics) Air Engineering (Mechanical) including Aircraft Engineering Technician, Aircraft Technician (Mechanical) and Aircraft Maintenance Mechanic (Mechanical) RN/RM Air Engineering Technician RN/RM Aircrewman (RM, ASW, CDO) Air Traffic Controller AHP Biomedical Scientist Combat Med Tech RN/RM Comms Tech RN/RM Coxn (SM) RN/RM Diver RN/RM Eng Tech (ME & MESM) RN/RM Eng Tech (WE & WESM) AHP Environmental Health Tech Intelligence Analyst Intelligence Analyst (Voice) MAN ACCT ME Trade Gp RN/RM Naval Airman (AC) AHP Operating Department Practitioner OP MI OP TI R Sigs Gp A AHP Radiographer RN/RM RN/RM RN/RM RN/RM ME Clk of Wks REME Artificer REME TECH AC/AV Reme Tech Elect RLC Ammo Tech RLC Marine Engineer RM Art Veh & Y of S RM Comms Tech RM Info Sys RN & RM Medic SNCO Weapons Controller Supplement Army Air Corps Pilot 8 9

11 Annex B: Royal Navy Other Ranks Table range Rank Warrant Officer Increment Level (Year ) + Supplement + X-Factor = Gross Able Rating (Year ) (Year ) 0 9 NERP New Entrant 8 Chief Petty Officer/ Warrant Officer 6 (Year ) 6 (Year ) (Year ) Petty Officer (Year ) Leading Hand (Year ) 0

12 Annex B: Royal Marines Other Ranks Table L/Cpl 9 range Rank Warrant Officer Warrant Officer Increment Level (Year ) (Year ) 6 (Year ) + Supplement + X-Factor = Gross NERP Marine/ LCpl Marine New Entrant 8 6 (Year ) (Year ) Colour Sergeant (Year ) Sergeant (Year ) Corporal (Year )

13 Annex B: Army Other Ranks Table L/Cpl 9 range Rank Increment Level Private/ LCpl 8 Warrant Officer (Year ) 0 + Supplement + X-Factor = Gross Private 6 (Year ) Warrant Officer (Year ) 6 (Year ) NERP New Entrant (Year ) Staff Sergeant (Year ) Sergeant (Year ) Corporal (Year )

14 Annex B: Royal Air Force Other Ranks Table range Rank Warrant Officer/ MACR Flight Sergeant (IL6 is the entry point for Chief Techs promoted to FS) Chief Tech/ Flight Sergeant Sergeant Increment Level (Year ) (Year ) 6 (Year ) (Year ) (Year ) + Supplement + X-Factor = Gross NERP Corporal SAC (in trades with no SAC(T)/LCpl SAC/SAC(T)/ LCpl/Gnr SAC/Gnr LAC/ Gnr New Entrant (Year ) (Year ) (Year ) 6

15 Annex C: Officers Table range 6 Rank Commodore/ Brigadier/ Air Commodore Captain (Royal Navy)/ Colonel/ Gp Captain Increment Level (Year ) 6 + X-Factor = Gross + X-Factor = Gross Lieutenant Royal Navy)/ Captain (Army)/ Flt Lieutenant Below Lieutenant (Royal Navy)/ Below Captain (Army)/ Below Flt Lieutenant 6 (Year ) + X-Factor = Gross + X-Factor = Gross (Year ) Commander/ Lt Colonel/ Wg Commander 6 (Year ) + X-Factor = Gross Lieutenant Commander (Royal Navy)/ Major/ Squadron Leader 6 (Year ) + X-Factor = Gross 8 9

16 Annex D: The Job Evaluation Process Explained Many large organisations make use of Job Evaluation (JE) to inform their pay strategies, and the MoD has used JE since 90 to deliver a consistent and systematic means of defining relativities between jobs. JE is a very detailed process which examines trades against a set of common questions to enable a relative assessment of job weight of different trades. Under 000, JE evidence was used to inform pay banding for Other Ranks by trade and by rank in trade. Under the new pay model JE will be used to determine which supplement a trade should be placed. In addition, JE output for both Officers and Other Ranks is used by the Armed Force Review Body (AFPRB) and Other Government Departments to inform pay comparability work. JE is conducted by the Joint Service JE Team (JSJET) which currently consists of a C Civil Servant as Head supported by WO military JE analysts. The JE scores are determined by an independent judging panel of x OFs (a Captain (Royal Navy), Colonel (Army) and a Group Captain ()). The JE Process - How Does it Work for a Full Evaluation? A detailed analysis is undertaken of how a trade is employed at each rank (this is known as Statistics of Coverage) and this analysis determines how each rank within the trade is sampled. Each job sampled should be representative of a number of other jobs within the same trade at the same rank. Individual jobs for evaluation are selected by the appropriate trade sponsor and will represent a cross section of experience. Total coverage must amount to a minimum of 0% of the liability for that trade and rank. Typically, coverage of 8%+ is achieved, which ensures that the JE judging has considerable evidence on which to base its decisions. Each representative job is analysed and a detailed job description prepared for it. Each job is examined against six different elements, known as factors, which are assessed independently. Each factor comprises two or more dimensions, each of which has a level descriptor which sets out to define and rank the demands made by the job. The factors are: Knowledge, skills and experience needed for the post and the range of application required. Complexity and mental challenge of the job. Judgement and decision-making, and the impact of the job s output on the success of the organisation. Use of resources (Personnel, Equipment, Budgets etc); the level of supervision undertaken and the jobholder s influence in the organisation. Communication; the level of internal and external communications and their significance. Working conditions; health and safety aspects, bodily constraints and physical environment of the job in question. The levels accorded to each dimension are used to generate a numerical score for the factor by reference to a predetermined Scoring Matrix. Each factor has a different weight within the overall score and the proportion of the overall score generated by each factor can vary significantly from job to job, depending on its range of duties and its level within the organisation. The scores for each of the factors are added together to produce a job score known as job weight. Then a Whole Trade Score (WTS) which is a weighted average score - for the rank/ trade is produced based on the Statistics of Coverage. Thus if one job is representative of 0% of the trade and rank, the resultant job score will make a 0% contribution to the WTS. The greater the percentage covered by a representative job or jobs, the greater the impact on the WTS. The process includes considerable interaction with members of the trade undergoing the JE. This includes JE analyst interviews with personnel serving in representative posts, and benchmark visits where the judges visit a unit or units where there is an opportunity for the trade to showcase itself by demonstrating and explaining the requirements of their jobs. These visits are invaluable to understanding the nuances contained in the written job descriptions and the judges get a real feel for the trade and the requirements of individual jobs. Service personnel are generally good at selling themselves and what they do and are keen to have a role in a process that affects their pay. The whole JE process is open, honest and transparent to the trade managers/ sponsors and those involved in the process, which is a particular strength. Full judging sessions are formal affairs held in front of trade managers and specialist advisors. The judges have to achieve consensus in their scores for each factor of each job; this can lead to rigorous debate on any contentious issues, demonstrating the very careful consideration that underpins JE scores. JE outcomes are also used to inform the AFPRB s consideration of pay comparability, which is further informed by periodic scrutiny by external auditors such as Price Waterhouse Cooper (PwC.) The most recent assessment was conducted in 0. JE & JE Light When 000 was introduced there was a full re-evaluation of all trades, which took nearly 6 years to complete. A rolling programme was introduced to update JE data for each trade was introduced, and subsequently amended to focus specifically to re-evaluate trades where there had been significant changes to structure and/or role. With the arrival of NEM, the primary focus for work became updating JE data 0

17 in preparation for the new Model. Since then the JE team has completed all the full evaluations that had already been started and introduced a new process entitled JE Light to update the scores of those trades not evaluated in the previous years or so on a case by case basis. All this activity has been undertaken to ensure good quality JE evidence, with the work programmes agreed with the single Service Colonels, and was completed by Mar to enable subsequent decisions by the three Service s Principle Personnel Officers (nd Sea Lord (Royal Navy), Adjutant General (Army), Air Member for Personnel and Capability ()) on where different trades will be placed within the new pay model. The JE Light process focused on what has changed since the last full evaluation. The judges were briefed thoroughly on each trade in terms of numbers, structure, training and role. A one day benchmark visit was undertaken, which provided an opportunity to speak to trade personnel in depth about their jobs. Representative jobs were selected for each rank and the judges made evidence based judgments on variations to the scores for each factor. This was completed in front of trade managers and specialists. The revised scores for each trade by rank were then passed to the NEM Team. Under the NEM Model, JE data continues to provide the bedrock of the relative placement of trades within the pay model. Importantly, however, placement will be made on a throughcareer (TC) basis within trade, rather than by each rank in trade. The TCWTS is calculated in such a way that scores are not distorted by the number of ranks in a particular trade, or the volumes within each rank. This new (through career) approach will address certain areas of Service personnel dissatisfaction with the current model, including removal of flip flop in 000 that sees many personnel change several times between High and Low Bands as they promote within their trade. NEM s through-career approach will provide personnel with greater transparency and predictability of through career earnings. n Annex E: Other Ranks Indicative Rates 0/6 Rank / level OR NEM Indicative Rates (IPR) 000 Supp Supp Supp Supp Higher Lower Overlap ,8,66 OR-9-8,8 8,8 8,8 9,68,6,0 OR-9-,89,89,89 9, 6,8,90 OR-9-,6,6,6 8,,99,6 OR-9-6,8 6,8 6,8 8,,6, OR-9-6,9 6,9 6,9,90,0 0,9 OR-9-6,9 6,9 6,9,90,6 9,9 OR--0 OR-8-,0,68,68 6,9 - - OR--9 OR-8-,9,0,6 6, OR--8 OR-8-,869,,09 6,9 - - OR-- OR-8-,0,98,8 6,08,8,008 OR-8- OR--6 OR-8-0,9,0,,66, 0,0 OR-8- OR--6 OR-8-0,9,0,,66,08 9,88 OR-8- OR-- 9, 0,9,9,,889 8,990 OR-8- OR-- 8, 0,6,069,60,96,0 OR-8- OR-- 8,0 9,8,,906,09 6,80 OR--, 9,8 0,60,9 0,0,96 OR-- 6,9 8,0 9,906, 9,6,89 OR-- 6,9 8,0 9,906, 8,0,80 8,,00 OR-6-6,0, 9,068 0,6,,0 OR-6-, 6,80 8,09 9,8 6,808,86 OR-6-,9,6,6 8,9 6,0,00 OR-6-,68,8 6,,8,6,6 OR-6-,80,96,0 6,,,8 OR-6-,80,96,0 6,,89,08,8 0,89 OR--,60,0,6,68,60 0,6 OR-- 0,8,8,0,00,9 0, OR-- 0,06,,9,0, 0,6 OR-- 9,96 0,89,69,, 9,9 OR-- 9,8 0,0 0,8,6 9,9 8, OR-- 9,8 0,0 0,8,6 8,, OR--9 OR--,98 8, 8,9 9,0 - - OR--8 OR-- 6,8 6,868,9,88 9,9,0 OR-- OR-- OR--,0,60 6,0 6,8 8,,9 OR-- OR--6,9,08,908,6,,8 OR-- OR--,8,0,6,9 6,,88 OR-- OR--,86,060,89,69,9,86 OR-- OR-- 0, 0,96,0,0, 0, OR-- 9,0 9,0 9,0 9,0, 9,099 OR-- 9,0 9,0 9,0 9,0 9,98 8,6 OR-- 8, 8, 8, 8, 8, 8, NERP,6,6,6,6,6,6

18 Annex F: Officers Indicative Rates 0/6 Annex G: New Calculation Template - Other Ranks Rank Step NEM 000 OF6 0,98 - OF6 0,8 0,98 OF6 0, 0,8 OF6 0,8 0,0 OF6 00,6 0,8 OF6 00,6 00,6-9,8 OF 9,8 9, OF 6 90,990 90,90 OF 89,99 89,8 OF 88,09 88,0 OF 86,88 8,66 OF 8, 86, OF 8,0 8,09 OF 8,0 8,0-80,0 OF 80,0 9,8 OF 6 8,9 8, OF 6,668, OF,8,09 OF,08,08 OF,96,96 OF 69,66 0,8 OF 69,66 69,66-9,9 OF 9,9,966 OF 6,6 6,0 OF,9,0 OF,0,0 OF,69,08 OF,0,86 OF 9, 0,6 OF 9, 9, - 6,660 OF 6,660 6, OF 6,,9 OF,86, OF,98, OF,,9 OF 0,, OF 9,6 0,8 OF 9,6 9,6 OF -,8 OF,8,0 OF,, OF,6,6 OF 0,68 0,6 OF,, How to Calculate your new Indicative To establish your new indicative rate of pay (based on 0 indicative rates) you require three pieces of information: Your rank, Your Trade Supplement Placement and your current. Enter your Rank Note in Box opposite. Establish your Trade Supplement Placement Identify which supplement your Trade sits in from reference table at Annex A. The table provides a breakdown of trades against Supplement ). Note in Box opposite. Your salary before tax This can be found on your pay slip. Note in Box opposite. Establishing your new indicative rate of pay: Go to new pay scales at Annex E. Look up supplement table relevant to (b) above and identify pay scale for your Rank (a). Deciding your new salary a. If your salary (c) is below the pay scales for your rank go to the bottom of the new scale. b. If you salary (c) s within the range of salaries for your Rank go to nearest salary either equal to or first step above your salary. c. If your salary (c) is above the salary range then your pay remains at your current level. (a) (b) (c) Trade Supplement - New Rate

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