Scottish Government

H CHAIRS AND MEMBERS: APPROVAL

What must you do before you submit your proposals?

1. Public bodies and sponsor teams should complete the Excel templates to ensure they have included all the information necessary for the Finance Pay Policy team to assess the proposals. If you have any questions or wish to clarify anything, then please speak to the Finance Pay Policy team.

When must you submit proposals for approval?

2. You must consult the Finance Pay Policy team and obtain Scottish Government approval prior to implementing any proposals relating to the remuneration of Chairs or Members:

• the annual uprate;
• any revision or change to the remuneration package:
• the daily fee;
• the introduction of, or change to, other matters, such as pension arrangements; or
• any proposals to remunerate Chairs or Members of a new body or the introduction of a daily fee to Chairs or Members of an existing body.

3. Public bodies must seek approval before advertising or appointing a Chair or Member at a revised daily fee rate and ensure sufficient time to obtain this is built into any timetable.

How is the Scottish Government going to assess your proposals?

4. A Red Amber Green ( RAG) rating system for daily fee proposals has been introduced. The Finance Pay Policy team will assess proposals as Red, Amber or Green.

5. The Finance Pay Policy team will rate the annual uprate or any new or revised remuneration arrangements as Green if -

The proposed annual increase: Outturn information indicates that previous years' uprates were in line with what was approved and there has been no other change to any aspect of the remuneration (Chapter A, paragraph 8.2); The proposals are in line with the limits set out in Chapter G and the general requirements in relation to the Daily Fee Framework (Chapter F); and Proposals are confirmed by the Scottish Government portfolio finance team as affordable and sustainable within existing budgets (Chapter A, paragraph 7). Additionally - for any proposals for a new Chair or Members, following a review of the daily fee levels: The Banding and proposed daily fees are consistent with the Daily Fee Framework and supported by evidence and a robust business case (Chapter F, paragraphs 24-25).

6. The Finance Pay Policy team will rate the annual uprate or any new or revised remuneration arrangements as Amber if -

The proposed annual increase: Outturn information indicates a breach of previous years' policy or previously approved increase (Chapter A, paragraph 8.2); Includes proposals relating to any previous year(s) where the award has not yet been approved, whether or not it has been implemented or paid; or The proposals include the introduction of other benefits (such as pension, etc.) where this has not been previously agreed (Chapter F, paragraphs 27-32). Additionally - for any proposals for a new Chair or Members, or following a review of the daily fee levels: The Banding and proposed daily fees are not consistent with the Daily Fee Framework or not supported by evidence and a robust business case (Chapter F, paragraphs 24-25); The proposals could have a direct read across to other public bodies; or Approval is being sought retrospectively (whether or not proposals have already been implemented).

7. The Finance Pay Policy team will rate the annual uprate or any new or revised remuneration arrangements as Red if -

The proposed annual increase: Exceeds the basic award limit (2.00%), rounded, as set out in the policy document (Chapter G, paragraph 1); Results in a daily fee that exceeds the relevant ceiling in the Daily Fee Framework (where the daily fee is currently within the Framework) (Chapter F); or Proposals are not confirmed as affordable and sustainable within existing budgets by the public body and Scottish Government portfolio finance team (Chapter A, paragraph 7). For any proposals for a new Chair or Members, or following a review of the daily fee levels: The proposed daily fee is above the relevant ceiling in the Daily Fee Framework (Chapter F).

Who is going to approve the proposals?

8. If annual uprate proposals are rated as Green, then they may be approved at official level by 1. Scottish Government sponsor Director and 2. Deputy Director of Finance Expenditure Policy. Either approver may refer approval to the Scottish Government Remuneration Group for any reason.

9. Any proposals relating to annual uprates referred by officials; Amber proposals; proposals relating to introduction of, or reviews of the daily fees currently paid to Chairs and Members of existing bodies; the banding of a body; the assessment of the band or daily fees of a Chair and Members of a new public body, will require to be approved by the Scottish Government Remuneration Group. The Group may refer the approval to the portfolio Cabinet Secretary / Minister and the Cabinet Secretary for Finance and Sustainable Growth where they consider there is likely to be significant Ministerial interest.

10. Any proposal rated as Red cannot be approved. The public body must revise any such proposals, following advice from the Finance Pay Policy team and resubmit them.

How long should the process take?

11. Allow for up to 5 working days for consideration by the Finance Pay Policy team, provided completed Excel templates and, where necessary, a business case are included with proposals. If the issue is complex and is likely to take longer, then the Finance Pay Policy team will discuss this with the sponsor body and sponsor team.

12. If the proposals are referred to the Scottish Government Remuneration Group, then these are normally considered at a Remuneration Group meeting. Referral to Ministers will require further time.

13. The timescales for approving annual increase proposals rated Green are expected to be no more than two weeks, unless officials refer them to the Scottish Government Remuneration Group for approval.

14. If the proposals are referred to the Scottish Government Remuneration Group, then these are normally considered at a Remuneration Group meeting. Referral to Ministers will require further time.

What might happen if you exceed the approved increases?

15. If the approved increases are exceeded this could result in punitive action being taken by the Scottish Government, such as the recovery of any overpayments, the capping of future increases or a governance review of the public body.