Proposed Fee Increase for PVI Members

July 27 2016 AGM Paper:  Fee Increase Proposed from August 2016

Recommendation to Governance Board: That the cap on the PVI Fee be lifted to $110,000 (currently $80,000) with the percentage of salary remaining at 0.55%.

President’s Summary of the Case for an Increase:

• The Governance Board (GB) should review the subs at each AGM to ensure that PVI is not getting into a difficult financial position;
• It is a preference that the GB can adjust the sub for promotion and growth rather than cover contingencies;  the current financial position of PVI is “healthy” – there are no concerns though we did run a deficit in 2015-16 due to the length of the CEA round and the ratification meetings;
• The GB feels that it is time for PVI to be “seen” and there needs to be more investment in promoting PVI; See the Chart of Comparative Professional Union Fees
• PVI has currently moved to a position whereby over a number of years the Subscription v. Remuneration ratio has meant that there is not a proportionate scale of membership fees.  Verifiers in SBS level 10 (TTS) are just above the cap of $80,000.  This means that Verifiers in the higher salary levels are now not paying at the original %age (0.55%);
• The GB want to keep the sub reasonably relative to the level it was when PVI was registered – to maintain a level of service;
• To build the proportionate scale back in will be achieved by lifting the cap back into the veterinary remuneration bands;  we are currently looking at that level being $110,000 – this we think is fair;  the percentage of salary will remain at 0.55%.
• In effect that will mean that the biggest jump in sub will be for those well above the current cap.  This also in effect means an increase of different amounts per group as below;

How much is the proposed increase?

• At about the time the new sub applies there will be the application of the remuneration increase backdated to 1 July 2016.  While this has not been announced, if we assume the 2% of previous years, then for example for those SVs who are paying the increased fee of $6.35 per fortnight, your salary increase will be approx. $84.60/fortnight. (I haven’t taken tax into account but everyone gets the picture);
• PVI sometimes has to pay for research and information and PVI will do this diligently by considering cost/benefit; there will also be considerable costs in implementing the consultation and dialogue sections of Collective Agreement CLAUSE 45
• PVI subs at 0.55% were considerably lower that some other professional unions with the larger unions with more members and less effective member services (because of the numbers) running closer to 1% of salary.

Constitutional Basis:

The PVI Constitution (Rule 11 on https://professionalverifiersinstitute.org.nz/ ) allows for the Governance Board to increase the PVI Fee/subscription:

• Either at the rate of inflation (effectively zero since mid 2014);
• Or against “required activities”.

This decision is by the Governance Board not by referendum of members, so please let your delegate know if you have any comment.