The Clerk of the Parliaments, Michael Pownall, is head of the permanent staff of the House of Lords. He is the Accounting Officer and, under the Parliamentary Corporate Bodies Act 1992, he is also the Corporate Officer of the House of Lords.

The Clerk of the Parliaments is supported by a Management Board, which he chairs. The membership of the Management Board is designed to reflect the wide range of services provided to the House and its Members. In 2009-10 members were as follows:

• David Beamish - Clerk Assistant and Clerk of Legislation
• Rhodri Walters - Reading Clerk
• Lieutenant-General Sir Michael Willcocks, KCB - Gentleman Usher of the Black Rod and Serjeant-at-Arms (retired 8 May 2009)
• Lieutenant-General Sir Freddie Viggers KCB CMG MBE - Gentleman Usher of the Black Rod and Serjeant-at-Arms (from 30 April 2009)
• Philippa Tudor - Finance Director
• Simon Burton - Director of Human Resources
• Elizabeth Hallam Smith - Director of Information Services and Librarian
• Carl Woodall - Director of Facilities
• Joan Miller - Director of Parliamentary Information Communications and Technology

The Clerk of the Parliaments is appointed by the Crown and can be removed from office only by the Sovereign upon an address of the House of Lords for that purpose. The Clerk Assistant and the Reading Clerk are appointed by the Lord Speaker, subject to the approval of the House, and can be removed from office only by order of the House. The Gentleman Usher of the Black Rod is appointed formally by the Crown following a recruitment exercise conducted by the Clerk of the Parliaments. Black Rod also holds the office of Serjeant-at-Arms. All other staff are appointed and removable by the Clerk of the Parliaments as Corporate Officer of the House of Lords.

REMUNERATION POLICY

The salary of the Clerk of the Parliaments is linked to Judicial Salary Group 4. Pay for the Management Board members is in line with the pay bands used in the Senior Civil Service, and pay awards are performance-related. Pay awards are determined annually by reference to the Senior Salaries Review Body recommendations for the Senior Civil Service.

REMUNERATION REPORT 2009-10 - continued

SALARY AND PENSION ENTITLEMENTS

The salary and benefits in kind of the Management Board were as follows:

	2009-10		2008-09
	SALARY £000	BENEFITS IN KIND (to nearest £100)	SALARY £000	BENEFITS IN KIND (to nearest £100)
Michael Pownall	170-175	-	165-170	-
Clerk of the Parliaments
David Beamish Clerk Assistant	120-125	-	110-115	-
Rhodri Walters	110-115	-	110-115	-
Reading Clerk
Lieutenant-General Sir Michael Willcocks, KCB	15-20	see below	95-100	see below
Gentleman Usher of the Black Rod (retired 8t May 2009)	(95-100 full year equivalent)
Lieutenant-General Sir Freddie Viggers KCB CMG MBE	75-80	see below	n/a	n/a
Gentleman Usher of the Black Rod (from 30 April 2009)	(80-85 full year equivalent)
Simon Burton	75-80	-	80-85	-
Director of Human Resources
Philippa Tudor Finance Director	95-100	-	95-100	-
Elizabeth Hallam Smith Director of Information Services and Librarian	105-110	-	110-115	-
Carl Woodall Director of Facilities (from 18 March 2009)	90-95	-	0-5 (90-95 full year equivalent)	-
Joan Miller Director of Information Communications and Technology	100-105	-	105-110	-

a. Salary

'Salary' includes gross salary; performance pay or bonuses; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances and any other allowance to the extent that it is subject to UK taxation. The report is based on payments made by the House and thus recorded in these accounts.

b. Benefits in kind

The monetary value of benefits in kind covers any benefits provided by the employer and treated by HM Revenue and Customs as taxable emolument. Black Rod occupies a Parliamentary Residence and for 2009-10 the taxable benefit for the residence was £1,001 (2008-09 - £5,054) for Michael Willcocks and £4,030 (2008-09 £nil) for Freddie Viggers.

c.  Director of Parliamentary Information Communications and Technology

The salary and pension benefits for the Director of Parliamentary Information Communications and Technology are paid directly by the House of Commons and recharged to the House of Lords at a rate of 20%. The salary and pension benefits disclosed represents the total remuneration package paid between the two Houses.

REMUNERATION REPORT 2009-10 - continued

PENSIONS

The pension benefits of the Management Board were as follows:

	ACCRUED PENSION AND RELATED LUMP SUM AT 31/3/10	REAL INCREASE IN PENSION AND RELATED LUMP SUM AT 31/3/10	CETV aT 31/3/10	CETV aT 31/3/09	REAL INCREASE IN CETV
	£000	£000	£000	£000	£000
Michael Pownall	80-85	2.5-5	2,021	1,881	80
Clerk of the Parliaments	Plus lump sum of 245-250	Plus lump sum of 10-12.5
David Beamish Clerk Assistant	50-55 Plus lump sum of 150-155	2.5-5 Plus lump sum of 7.5-10	1,150	1,036	58
Lieutenant-General Sir Michael Willcocks, KCB	5-10	0-2.5	195	190	2
Gentleman Usher of the Black Rod (retired 8t May 2009)	Plus lump sum of 25-30	Plus lump sum of 0-2.5
Lieutenant-General Sir Freddie Viggers KCB CMG MBE	0-5	0-2.5	24	-	21
Gentleman Usher of the Black Rod (from 30 April 2009)	Plus lump sum of 0-5	Plus lump sum of 0-2.5
Rhodri Walters	50-55	2.5-5	1,249	1,140	63
Reading Clerk	Plus lump sum of 155-160	Plus lump sum of 7.5-10
Philippa Tudor Finance Director	30-35 Plus lump sum of 90-95	0-2.5 Plus lump sum of 5-7.5	591	522	34
Elizabeth Hallam Smith Director of Information Services and Librarian	35-40 Plus lump sum of 115-120	0-2.5 Plus lump sum of 5-7.5	930	834	51
Simon Burton Director of Human Resources	30-35 Plus lump sum of 95-100	0-2.5 Plus lump sum of 5-7.5	501	446	26
Carl Woodall Director of Facilities (from 18 March 2009)	0-5 Plus lump sum of 0-5	2.5-5 Plus lump sum of 0-2.5	-	33	26
Joan Miller Director of Information Communications and Technology	7.5-10 Plus lump sum of 0-5	0-2.5 Plus lump sum of 0-2.5	161	117	2

Pension benefits are provided through the House of Lords Staff Pension Scheme (HOLSPS). From 30 July 2007, staff may be in one of four defined benefit schemes; either a final salary scheme (CLASSIC, PREMIUM OR CLASSIC PLUS); or a 'whole career' scheme (NUVOS). The statutory schemes are unfunded with the costs of benefits met by monies voted by Parliament each year. Pensions payable under CLASSIC, PREMIUM, CLASSIC PLUS and NUVOS are increased annually in line with changes in the Retail Prices Index (RPI). Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a good quality 'money purchase' stakeholder pension with a significant employer contribution (PARTNERSHIP pension account).

Employee contributions are set at the rate of 1.5% of pensionable earnings for classic and 3.5% for premium, classic plus and nuvos. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years' pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike CLASSIC, there is no automatic lump sum.

REMUNERATION REPORT 2009-10 - continued

CLASSIC PLUS is essentially a hybrid with benefits in respect of service before 1 October 2002 calculated broadly as per CLASSIC and benefits for service from October 2002 calculated as in PREMIUM. In NUVOS a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member's earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with RPI. In all cases members may opt to give up (commute) pension for lump sum up to the limits set by the Finance Act 2004.

The PARTNERSHIP pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 3% and 12.5% (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of three providers. The employee does not have to contribute but where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer's basic contribution). Employers also contribute a further 0.8% of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement).

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of CLASSIC, PREMIUM and CLASSIC PLUS and 65 for members of NUVOS.

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member's accrued benefits and any contingent spouse's pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The figures include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their purchasing additional pension benefits at their own cost. CETVs are calculated in accordance with the Occupational Pension Scheme (Transfer Values) (Amendment) Regulations and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Michael Pownall

Clerk of the Parliaments and Accounting Officer

16 July 2010