1. PCT-Administered Funds Funding mainly to cover: –Seniority –Locum allowances Maternity, paternity and adoptive leave Sickness Suspended doctors Prolonged study leave Recruitment and retention funds remain centrally funded

2. Seniority From April 2004: Only full payment if receiving >2/3 av. SA income 60% if receiving >1/3 but <2/3 av. SA income No payment if receiving <1/3 av. SA income PCT year-end accounts will be based on estimates Finalised when nat. av. SA income is known

3. Locum Allowances Minimum requirements published in SFE PCTs have legal obligation to develop policy for payment of locum cover from 1 April PCTs must seek to agree policy with LMC

4. Enhanced Services Allocation Allocation represents transfer of GMSNCL payments –Intra partum care –Intrauterine device fees –Influenza immunisations –Childhood immunisations –Minor surgery (part) Based on identified historic spend (uplifted)

5. Enhanced Services Floor Enhanced Services Floor is combined total of: –Fair share of £394m (as per HSC 2002/12) –Transfer of GMSNCL payments (equals ES allocation) –PMS equivalent of GMSNCL transfer Each PCT has a local floor (minimum spend) –Planned spend signed off by PEC –Qualifying expenditure discussed with LMC

6. Qualifying Expenditure The following spend counts towards the floor: DES, NES or LES from any provider PWSIs (over and above essential/additional services) Plus in PMS Plus / Specialist in specialist PMS Local incentive schemes for GMS/PMS providers Re-commissioned services (previously placed with a NHS trust) providing that: –it was contestable for GMS/PMS contractors –it might reasonably provided by GMS/PMS contractors.

7. Pensions Significant changes to pension scheme –Eers contribution rate increases from 7% to 14% –Change in mechanism for calculating SA pay for GPs Adjust global sum for changes –change in eers rate affects cost of both staff and GPs –increased contributions due to increased GP income

8. Superannuable Pay Now, SA pay is proportion of NHS income –proportion reflects national average expenses From April, SA pay equals profit on NHS work –reflects actual practice expenses (not national average) –cost of delegated work reduces SA pay (eg locums) –accountants certify NHS profits

9. Pension Contributions Global sum includes cost of pension contributions (for staff and GPs) PCTs responsible for administering GPs pension contributions PCTs must topslice contract to cover contributions –estimate NHS profit (SA pay) for each partner –balancing payment when accountants certify NHS profits PCT year-end accounts will estimate pension costs