Download Emoluments - London Councils

EMOLUMENTS
Contents
Introduction........................................................................................................... 2
Resident Teachers .............................................................................................. 2
Emoluments - Service tenancies ...................................................................... 2
Application of emoluments to uniform and protective work wear ................ 3
Application of emoluments to car leasing ........................................................ 3
Introduction
Payments in kind, such as service tenancies, uniform and protective clothing
and car leasing (where these are part of a recruitment and retention package,
or where subsidised rates are granted to employees whose posts hold
essential car user status) attract an emolument value for pension purposes.
The emolument value is a set figure or percentage which attempts to reflect
the financial value of a payment in kind, upon which pension contributions are
payable.
Further details about the calculation of emolument values and pension
contributions are available from directorate HR sections.
Resident Teachers
Resident Teachers are required to pay for any emoluments received, at the
rates determined by the Council, including accommodation, laundry, heating,
lighting and water charges.
Further details can be obtained from the Education and Culture
Personnel Section.
Emoluments - Service tenancies
Service tenancies should only be offered to employees in exceptional
circumstances where it is essential for the proper performance of their duties.
In such circumstances the requirement to reside in Council accommodation
must be:

mentioned in the initial advertisement

included in the recruitment pack

discussed fully at the interview

included in the contract of employment

subject to a service tenancy agreement issued to employee in
consultation with Legal Services.
A service tenancy which occupied on a rent free basis, for example housing
caretakers, attracts an emolument value for pension purposes of the current
rental value plus costs for heating, lighting etc.
Occasionally it is desirable for an employee to reside in Council premises for
service delivery/security reasons. Such employees are charged the full
economic rent for the property less 25% discount to reflect the value to the
Council of the service tenancy. Additionally the employee is responsible for
paying the full cost of any other costs associated with the property, including
Council tax, heating and lighting etc. The emolument value for pension
purposes of these properties will be the value of the 25% discount.
It is essential that directorate payroll sections are informed of employees who
reside in service tenancies in order that the correct deductions for pension
contributions and (where appropriate) rental charges are made from the
employees concerned.
Application of emoluments to uniform and protective work wear
An emolument value for pension purposes is attached to uniform and work
wear which is purchased for the employee by the employer. The value is
taken to be the purchase price of the articles of clothing.
Application of emoluments to car leasing
An emolument value is attached to the employer's contribution for car leasing.
The value is the actual amount of the employer's contribution.