Remuneration (September 2008) 1.1 To ensure remuneration levels are reasonable in relation to market value and performance

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1 REMUNERATION & BENEFITS POLICY Our Policy 1. Remuneration: Our aim is to offer competitive remuneration packages as part of our Human Resources strategy designed to recruit and retain high calibre staff at all levels to provide quality of work and excellent customer service. 2. Relocation: It is Sentinel policy to provide financial assistance to newly appointed staff on selected posts at the discretion of the Human Resources Manager. This will usually apply to senior positions and those positions deemed to be hard to fill due to a skills shortage. 3. Allowances: Sentinel aims to provide a range of allowances which acknowledges the impact of additional activities on staff and reflects market trends of other organisations. 4. Pensions: We offer the benefits of a contributionary pension. 5. Private Medical Insurance: To ensure that our staff receive prompt medical attention if they suffer from a complaint/illness. 6. Eyesight Test: We aim to fulfil our legal requirements by contributing towards eyesight tests and glasses. 7. Personal Development Allowance: We believe in the importance of achieving a work life balance. To help our staff achieve this, we will offer a contribution of 100 per year towards personal development and learning. Remuneration (September 2008) 1.1 To ensure remuneration levels are reasonable in relation to market value and performance 1.2 To measure, by analytical job evaluation, all jobs for comparison purposes. 1.3 To pay all staff reasonably in line with job evaluation scores. 1.4 To pay all staff reasonable in line with job evaluation scores. 1.5 To reward staff who are performing well by awarding performance based increments. 1.6 To review remuneration levels annually. 1.7 To ensure that remuneration levels are set at a level that is affordable 1.8 To recognise and reward staff for undertaking additional responsibilities for more than 4 weeks 1

2 1.9 To provide a pension scheme which allows members to make financial provision for their retirement To provide an excellent benefits package. Salary Ranges 1.11 The pay structure sets out job grades and pay bands. Sentinels of the current pay bandings are available on the intranet New entrants will, normally, be appointed at the rate appropriate for their level of experience, taking into consideration the market and others undertaking similar roles. If, due to inexperience, they are appointed below the mid-point, their salary will be reviewed once they are performing at the competent level Following completion of their probationary period, new staff will be assimilated into the annual performance appraisal cycle. Individuals who join the organisation between January and March will have a RPI increase assumed into their starting salary. They will not have an annual increase until the following April Performance is assessed annually against individual objectives which are derived from departmental objectives in line with strategies and the corporate plan Salaries will be subject to annual review. The review will take place in April each year and will be related to a number of issues such as cost of living, the market and the performance of the Association and affordability. Performance Related Pay 1.16 The following process applies to all staff with the exception of the Executive Group All staff are appraised each year. They are set personal objectives which are determined from the department s action plan which have been formulated fro the corporate plan and department strategies The previous year s performance is assessed and feedback given on both inputs (knowledge, skills and competencies brought to the job) and outputs (results). Performance is taken into consideration when determining individual pay increases The amount of these performance related increases will be discretionary and influenced by the funds available. They will be agreed by the Remuneration Committee in or around January each year Departmental supplements, of up to 15% above the top of the grade, may be used if found necessary due to recruitment and retention problems On-call allowances and unsociable hours payments will be paid and will be determined by the Remuneration Committee. These will be set as shown in Appendix 1 Staff Temporarily Undertaking Additional Duties 2

3 1.22 Where a member of staff, who for any reason other than the annual leave of another member of staff, is required to undertake the full duties and responsibilities of a higher graded post for a continuous period of at least four weeks, (s)he will be entitled to received a higher graded post. Once the qualifying period of four weeks has been satisfied the higher salary will be paid with effect form the first day on which the staff member was required to undertake the full duties and responsibilities of the higher post These provisions apply only where a member of staff is required to undertake the full duties and responsibilities of a higher graded post. It cannot therefore be applied where the duties and responsibilities are shared between more than one member of staff. In such cases, the Association will have discretion to grant an honorarium calculated by reference to the salary of the post being covered and the number of employees amongst whom the additional duties have been shared. Recognition 1.24 We want to recognise and reward staff achievement both officially, through the Appraisal and pay review process, and unofficially, through non cash rewards A Staff Awards Ceremony will be held annually at which a maximum of 12 staff can win 100 and the recognition that they were the best of that category during the last year. The winners will be publicised in the staff newsletter and on the intranet. Staff Loyalty Award 1.26 On completion of 5, 10 and 15 years of continuous service Sentinel will recognise employee dedication with a Staff Loyalty Award. See Staff Loyalty Award Procedure for detail. Allowances for Working Arrangements other than Normal Office Hours 1.26 The Association will only pay overtime to full time staff in exceptional circumstances. For further information please see Overtime Procedure On occasions, the Association may par for extra hours worked by part-time staff on their normal hourly rate. The agreement of the relevant senior manager and Human Resources will be required beforehand. The total number of hours will not exceed 37 hours in any given week. Executive Group 1.28 The Executive Group s salary will be reviewed annually, at or around April, each year, by the Remuneration Committee. This review will take into account the cost of living awards to other staff, the individual s performance and the market value of the post The Remuneration Committee will receive a biennial review of the market value of all Executive posts, recruited prior to 2008, and submit proposals to the Board for decision. At this time, the Association s financial position will also be taken into account The Board will be provided with detailed worked examples of each Executive s remuneration packages for approval. 3

4 1.31 All members of the Executive Group are appraised each year and set personal objectives in line with the corporate plan and department strategies. Other Benefits 1.32 The Association also provides benefits for staff. Entitlement to these benefits is determined by the relevant policy or contract in force at that time. The benefits the Association offer are: Relocation (January 2007) 2.1 This policy is for those who, as a direct result of accepting the appointment, necessarily incur expenses in moving home nearer to their Sentinel work base. 2.2 Sentinel recognise the impact of such a change in lifestyle and as such endeavours for staff to begin their new role with the minimum cost and disruption to home life. Eligibility 2.3 If you live outside an area covered by a circle of 20 miles radius centred on your work location and, as a result of taking up employment with us will move to within a 20 mile radius of your place of work, you will be entitled to benefits under this policy. This boundary can be increased at the discretion of the Chief Executive in appropriate individual cases. 2.4 In the event that you are required to move into a property provided on a service tenancy as part of your employment with us you will be entitled to benefits under this policy. 2.5 In the event that you do not claim any payments under this policy within 12 months of taking up your appointment you will no longer be eligible to make a claim, unless you have asked for an extension prior to the expiration of the 12 month period and the Human Resources Manager has approved your request. 2.6 The Human Resources Manager will clarify an decision made under this policy. Entitlement 2.7 Up to 8,000 will be paid to you if you are both buying and selling a property as a result of taking up employment with us. To qualify for tax relief, expenses must be reasonable and their payment must be properly controlled. 2.8 The following are examples of expenses normally permitted: 2.9 Direct expenses, i.e. these include costs which can be fully attributed to moving house, e.g. legal fees, stamp duty, estate agents fees, building society surveys and other professional costs associated with the move, removal and associated insurance costs, mortgage redemption costs Indirect costs: i.e. travelling to and from the new area together with subsistence and accommodation costs while house hunting, looking from schools, etc, carpets and curtains which have to be purchased for the new property, installation of telephone, hotel accommodation where the new house is not ready fro occupation. 4

5 will be paid on commencement of employment, with the balance payable on the completion of all activities. Such payment will be subject to the production of receipted bills If you are moving from rented accommodation to new rented accommodation you will be entitled to the cost of removal of your household goods, their insurance in transit and any necessary storage expenses. We will pay the costs shown on the lowest of three independent estimates and will make payment only on proof that the work has been carried out and on production of three independent estimates You are entitled to an additional payment of 400 for any incidental expenses. Conditions of Payment 2.14 If you wish to claim the benefits available to you under this policy the employee is responsible for notifying the Human Resources department. The appropriate form is available on the intranet. The balance on each payment will only be paid after you produce proof and receipted invoices to the Human Resources Manager In the event that you claim any sums under this policy you will be required to sign the appropriate form to state that you will repay the sums claimed on the following basis: 2.16 If you have less than 1 year s service from the date of any payment the whole sum will be repayable. If you leave our employment within 2 years of receiving this benefit, you may have to repay (part of) it If you have over a year, but less than 18months service from the date of any payment 50% of the sum will be repayable If you have over 18 months service, but less than 2 years service from the date of any payment 25% of the sum will be repayable Where a staff member s place of work is changed, they are offered travelling expenses to a maximum of 30 miles per day, at 30p per mile, for a period of 12 months. Allowance (February 2007) 3.1 It is anticipated that staff employed in some capacities within Sentinel will be required to perform activities which may require additional expenses to those which would normally be incurred. It is our policy that all staff should be reimbursed for reasonable expenses incurred in the course of performing their duties on our behalf. 3.2 Details of all allowances can be found on the Ship, with copies additionally available from Human Resources. The document is known as the Schedule of Allowances. No claim can be submitted without proof of expenditure, usually in the form of a receipt. Our Approach Car User Allowance 3.3 All users claiming car user allowance must ensure that the vehicle: 5

6 3.4 Is available at work and in a roadworthy condition; 3.5 Has valid insurance which gives full cover for business use. Essential User 3.6 If you are employed in an Essential User post, you must have a car available for you to carry out your duties effectively. 3.7 You are entitled to a car allowance paid monthly via salary, subject to tax and National Insurance, plus a rate per mile for journeys carried out in the course of your duties. Part months will be paid on a pro rata basis. 3.8 In addition, you are responsible for ensuring that the vehicles has breakdown cover. 3.9 If you lose your driving licence, this may have serious consequences for your employment, your employment may even be terminated Failure to make the car available for work, unless it is in for routine servicing, will result in the car allowance being withdrawn and your continued employment being subject to review. Senior Staff 3.11 As part of their remuneration package, directors and senior managers receive a Car Allowance, which is paid monthly via salary and is subject to tax and National Insurance They must have their car available at work in a roadworthy condition and ensure that their insurance gives full cover for business use. Casual User 3.13 If you are not an essential user or a senior member of staff who is asked to use his/her car to carry out duties, you are classified as a casual user You are entitled to a higher rate per mile for necessary journeys undertaken in the course of work, buy you do not receive the car allowance to which the essential users and senior staff are entitled. Business Mileage 3.15 You may claim in respect of all business miles actually travelled by car as approved by your manager Travel between your home and office base does not constitute business travel Any business trips starting at the office and returning to the office on the same day constitute business mileage If you make a business call on the way to the office or on the way home from the office you can claim the increased mileage only It is acceptable to claim the full mileage as business mileage if your journey starts from home to a business call and you then return home. 6

7 3.20 It is essential that a full record is kept of each journey This procedure is written to ensure compatibility with the Inland Revenue interpretations of mileage allowances which may be paid without the deduction of tax or exposure to full benefit. Travelling Expenses 3.22 Travelling expenses are not payable for journeys between your home and your normal place of work If you are required to travel on business, you must use the most cost effective method of transport, appropriate to the destination If you receive any form of car allowance, your car must be used or you must travel by second class rail fare, whichever is the cheaper Any claim for reimbursement should be made on the travel expenses claim form available on the Intranet and countersigned by your manager A cash advance up to a maximum of 40 is available from petty cash. Car Parking Arrangements 3.27 If you are based at the Basingstoke Office the provision available, in most cases, should be sufficient for the demand at that site If you are based at the Fleet Office, the provision is limited. If you receive a car allowance, you are entitled to park in the car park under the building. If you are not an essential user, or senior manager, we will purchase a parking permit to allow you to park at one of the local public car parks. Hotel Expenses 3.29 If you are required to stay overnight in a hotel on business we will reimburse receipted hotel bills to include: 3.30 A single room rate plus breakfast; 3.31 An evening meal including soft drinks (in accordance with the schedule of allowances); 3.32 One private phone call home; 3.33 A daily newspaper; 3.34 An evening meal if eating outside the hotel An overnight allowance of 25 may be paid if you choose to stay with a friend or relative rather than at a hotel. This requires the prior approval of your line manager. 7

8 3.36 If you need to book a hotel, please make sure that value for money is achieved. We suggest a 3 star hotel is used where possible. Subsistence 3.37 The following allowances are claimable where an employee is working away from Sentinel locations and is not claiming overtime: 3.38 Breakfast: if you leave home for a business meeting before or at 7.00am in the morning; 3.39 Lunch: if away from the office between the hours of 12 and 2 at a meeting where lunch is not provided. You will not be eligible to claim lunch allowance if you are attending training events, seminars and conferences where meals/snacks are provided. Nor will you be eligible to claim for lunch whilst attending a college course; 3.40 Dinner: if you are returning home after 8.00pm and dinner/snacks are not provided. This is not to be claimed by stag attending Board/tenant meetings as refreshments are provided. First Aiders and Fire Wardens 3.41 An allowance as detailed in the Schedule of Allowances will be paid to you I you are appointed as a First Aider or Fire Warden. The Schedule of Allowances can be found on the intranet. Childcare Vouchers 3.42 If a staff member has to pay for childcare they may choose to sacrifice part of their salary and take the same value in childcare vouchers instead. Childcare vouchers are exempt of tax and N.I. so the employees sees a real cash saving. Further details on this benefit are available from the HR department or can be found at Pension and Death in Service Benefits (September 2008) 4.1 We offer the benefits of a contributionary pension. 4.2 If you are a new staff member of an existing one who has not joined an approved scheme you are eligible to join our scheme provided by the Social Housing Pension Trust. 4.3 You may make Additional Voluntary Contributions (AVC s) thus increasing your benefit. 4.5 The normal Pension Age under the scheme is 65, however you may retire earlier and received a reduced pension. 4.6 The longer you are a member of the Defined Pension Scheme, the larger your pension will be. 4.7 There are benefits of lump sum payments, partner s and children s pensions. 4.8 The pension is inflation linked. 8

9 4.9 Sentinel only makes contributions to its recognised scheme(s) and will not contribute to other personal pensions that employees may have If a staff member who is a member of the Pensions Scheme dies whilst in employment, a lump sum payment and reduced pension is payable to their partner/children All pension benefits are subject to periodic review and amendment For details, see the Pensions Trust Guide to Members available from the HR Department or the Pensions Trust direct. Private Medical Insurance (October 2007) Statement of Purpose 5.1 To ensure that our staff receive prompt medical attention if they suffer from a complaint/illness. Our Policy 5.2 Private Medical Insurance is offered to all staff on successful completion of their probationary period. The benefit is free to all employees, regardless of the hours they are contracted for. The benefit is worth p.a. as at August 2008 and is taxable. 5.3 This benefit is subject to periodic review and amendment. 5.4 Staff can take up this benefit for their partner and families at discounted rates. 5.5 There is an excess payable by staff which is determined each policy year. 5.6 Anyone wishing to take out medical insurance will have a fully underwritten policy. Pre existing medical conditions/illnesses are unlikely to be covered. 5.7 Staff may leave the scheme at any time with one month s notice, by confirming their request in writing to their HR Advisor Eyesight Test (June 2006) 6.1 We aim to fulfil our legal requirements by contributing towards eyesight tests and glasses. 6.2 We will contribute 17 towards the cost of an eye test which you may arrange with any approved optician. 6.3 If you require glasses for general use including the use of computers, we will pay up to 44 for single vision glasses. You will be responsible for any additional costs. 6.4 The eye test must be carried out by an approved practitioner. Entitlement 9

10 6.5 You are entitled to request an eyesight test from the start of your employment. This includes those on probation. 6.6 In accordance with the Health & Safety (Display Screen Equipment Regulations 1992) we have a duty to ensure the provision of an appropriate eyesight test is carried out by an approved practitioner. 6.7 Frequency of Eye Tests to be determined by optician or if a member of staff is experiencing visual problems. 6.8 To be reimbursed for the cost of your eye sight test, and receive the 44 contribution towards glasses, you should complete a non-travel expense claim form and forward it to your HR Advisor for authorisation. 6.9 The provision of sight testing or glasses, other than to comply with European Union Regulations, may constitute a taxable benefit. Personal Development Allowance (May 2006) 7.1 We believe in the importance of achieving a work life balance. To help our staff achieve this, we will offer a contribution of 100 per year towards personal development and learning. Our Approach 7.2 Personal development can be defined as any new skill you want to learn there is no catch. Some examples have included, but are not limited to: 7.3 Advanced driving skills, cake decoration, driving lessons, wine tasting, photography, sporting activities, languages, cookery classes, DIY. 7.4 The objectives for this activity need to be pre-set and as long as we can see that the outcome of the training will give you knowledge and skills, which you did not have previously, we will make a contribution. Who is eligible 7.5 All permanent staff are eligible, whether full or part time, on completion of their probationary period. 7.6 The activity must take place outside working hours. 7.7 The activity/learning needs to be carried out in a formal setting. Making a claim 7.8 If you wish to take advantage of this benefit you should complete the Personal Development Approval Form (available on the intranet) and attach evidence of the cost for the activity. 7.9 Submit your completed Personal Development Approval Form to the HR Department for approval. 10

11 7.10 The HR department will the forward your claim to the Finance department for payment. When available, you will need to supply a copy of the receipt for payment of this activity to the HR department Following your activity, you will need to provide us with a summary of what you have learned and how you could use these skills in the future. Professional Subscriptions 7.12 Staff subscriptions for membership of professional bodies, where relevant to the work of Association, are paid for by the Association. Social Events 7.13 From time to time, the Association may make benefits available to staff in accordance with the Housing Corporation s Good Practice Note 3: Maintaining Standards of Probity issued in July These benefits currently include Association funded celebrations at Christmas and Easter. Contracts 7.14 Contracts will be reviewed periodically and reported to Remuneration Committee The Remuneration Committee will have regard to Good Practice Note 10 in relation to the terms and conditions of Senior Executives. Updated: , para 5.2, amended from 212 p.a. 11

12 REMUNERATION & BENEFITS POLICY SUMMARY Changes from previous version An amalgamation of the following policies: Remuneration Policy, Relocation Policy, Allowances Policy, Allowances Policy, Pensions Policy, Private Medical Insurance Policy, Eyesight Testing Policy, Personal Development Allowance Policy. Regulation & Legislation This policy is linked to the following regulation and legislation: The Employment Rights Act 1996, Employment Act 2002, The Collective Redundancies and the Transfer of Undertakings (Protection of Employment) (Amendments) Regulations 1999 (SI 1999/1925), The Sex Discrimination Act 1975, Employment Protection (Part Time Employees) Regulations 1995 (SI 1995/31), The Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 (Amendment) Regulations 2002 (SI 2002/2035), The Occupational Pension Schemes (Equal Treatment ) (Amendment) Regulations 2005 (SI 2005/1923) Equality & Diversity Impact The association is committed to meeting the needs and aspirations of customers and communities in a fair, respectful, and proportionate manner. Our approach to diversity and equality is to promote inclusiveness by recognising that anyone, regardless of origin or background, can make a positive difference in the achievement of the organisation s vision and in the wider society. We will comply with best practice from legal, regulatory and inspection requirements. Codes of Practice and other guidance will be used appropriately to ensure progress on diversity. Financial Impact Assessment The policy aims to recruit and maintain high calibre staff by offering an excellent benefits package in order to increase customer services and reduce the costs related to staff turnover. Monitoring and Review The operation of this policy will be regularly reviewed by the HR Manager, in conjunction with the Policy & Strategic Initiatives Officer, with adequate consultation of staff and customers. The outcome of that review will be communicated to the appropriate committee of the board. 12