Part 1: Members and employees etc.
383.Part 1 deals with the members and employees of the Authority. The table below summarises the appointment procedures for the Authority and its staff.
| Initial appointment by | Subsequent appointments by | Terms and conditions set by | Remuneration set by | |
|---|---|---|---|---|
| Chairman | Secretary of State | Secretary of State | Secretary of State | Secretary of State |
| Chief Executive | Secretary of State | Chairman and other non-executive members, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval |
| Non-executive members (other than Chairman) | Secretary of State | The Authority, subject to Secretary of State approval | Initial appointment - Secretary of State. Thereafter, the Authority, subject to the approval of the Secretary of State. | Secretary of State |
| Executive members (other than Chief Executive and other employees) | Secretary of State | The Chairman and other non-executives, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval | Initial Appointment – Secretary of State. Thereafter- Chairman and other non-executive members, subject to Secretary of State approval |
| Other staff | The Authority | The Authority | The Authority | The Authority |
384.Paragraph 1 specifies that both the Secretary of State and the Authority must aim to ensure the Authority’s membership is between 3 and 9 members. The membership of the Authority is to consist of a chairman, appointed by the Secretary of State, non-executives appointed subject to sub-paragraphs (2) and (3) (namely that the first non-executives will be appointed by the Secretary of State, with any subsequent appointments to be made by the Authority with Secretary of State’s approval), and any executive members appointed as mentioned in paragraph 6 of the Schedule.
385.Paragraph 2 describes how the Secretary of State must, before appointing a chairman or another non-executive member, and from time to time once they have taken up their position, be satisfied that they do not have a conflict of interest, defined in sub-paragraph (6) as any interest, financial or otherwise, that is likely to affect prejudicially the way they carry out their functions.
386.Sub-paragraph (3) provides that any person mentioned in sub-paragraph (4) must, if the Secretary of State requests, provide information that will allow the Secretary of State to satisfy himself that they do not have a conflict of interest.
387.Sub-paragraph (5) states that sub-paragraphs (1) to (4) apply both when the Secretary of State proposes to make an appointment and when he considers approving an appointment made by the Authority.
388.Sub-paragraph (7) sets out the activities that are not to be considered a conflict of interest if they are the only relevant activities. These include being, or having been, involved on behalf of the relevant authority in activities connected with the discharge of the relevant authority’s functions relating to occupational or personal pension schemes. They also include having been a trustee or manager of an occupational or personal pension scheme, or an employee of such a trustee or manager.
389.Paragraph 24(1) defines the relevant authority as either the Secretary of State or the Department for Social Development in Northern Ireland.
390.Paragraph 3 deals with the tenure of office of the chairman and other non-executive members including the terms and period of their appointment, the procedure for resigning and the grounds, under sub-paragraph (5), on which the Secretary of State may, by notice in writing, remove a non-executive member from office.
391.Paragraph 4 allows the Authority to pay to non-executive members such remuneration, and to pay to or in respect of them such allowances and gratuities, as may be determined by the Secretary of State.
392.Sub-paragraph (2) provides for the Authority to pay compensation to the chairman or other non-executive members if they cease to hold their position for a reason other than the expiry of their term of office and the Secretary of State thinks there are special circumstances that make compensation appropriate. The Secretary of State will decide the amount of any such compensation.
393.Paragraph 5 provides for the Secretary of State to be able to appoint a non-executive member to the post of deputy chairman to discharge the functions of the chairman if there is a vacancy in the office of chairman or if the chairman is absent or otherwise unable to act. When discharging the chairman’s functions, the deputy must have regard to any guidance given by the chairman.
394.Sub-paragraph (1) of paragraph 6 states that the executive members of the Authority will be the chief executive of the Authority and other persons, if any, appointed in accordance with sub-paragraph (4) or (5).
395.Sub-paragraph (2) states that the Authority is not required by paragraph 1(1)(c) to have any executive members until the Secretary of State has appointed the initial chief executive.
396.Sub-paragraph (4) of paragraph 7 states that if an executive member who is a participant in a pension scheme relevant to his membership ceases to be an executive member without ceasing to be an employee of the Authority, the Secretary of State may, for the purposes of pension provision, determine that that person’s service as an employee is to be treated as if it were service as an executive member.
397.Paragraphs 6(7) and 8 allow the Authority to appoint other employees of the Authority who are not executive members, and for the Authority to determine their terms and conditions, including remuneration.
398.Paragraph 8(3) states that if an employee of the Authority is a participant in a pension scheme relevant to his employment and becomes an executive member of the Authority, the Secretary of State may, for the purposes of pension provision, determine that that person’s service as an executive member is to be treated as if it were service as an employee.
