These compensation terms applied up to 31 March 2010
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These compensation terms applied up to 31 March 2010

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These compensation terms applied up to 31 March 2010. They also apply in some transitional cases. Your employer will advise if they apply to you. Civil Service Compensation Scheme (CSCS)Early retirement and redundancy for classic plus, premium andwww.civilservice-pensions.gov.ukpartnership pension account members – a guide to what is availableThis booklet is published by Civil Service Pensions.© Crown Copyright February 2009Printed by St Ives Direct ERRCPPPContents IntroductionThis booklet provides information Introduction 3on the early retirement and redundancy benefits that are At a glance 4payable to premium, classic plus Approved early retirement 6 and partnership members.There are five categories:Flexible ear7 approved early retirement (AER);Flexible early severance 11 flexible early retirement (FER); flexible early severance (FES);Compulsory early retirement 13 compulsory early retirement (CER);y early severance 15 compulsory early severance (CES). Re-employment 17 Early severance applies to those who leave early, under age 50, with at least Partial retirement 17 1 year’s service and to those aged 50 or over with less than 5 years’ Options available for pension and lump sum 18 service. Early retirement applies to those who leave early, aged 50 or Paying benefits 19over, with at least 5 years’ service.This booklet does not cover medical Technical terms 20retirement. To find out more about this ...

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     These compensation terms applied up to 31 March 2010.          They also apply in some transitional cases.        Your employer will advise if they apply to you.
www.civilservice-pensions.gov.ukThis booklet is published by Civil Service Pensions.© Crown Copyright February 2009Printed by St Ives Direct ERRCPPPCivil Service Compensation Scheme (CSCS)Early retirement and redundancy for classic plus, premium andpartnership pension account members – a guide to what is available
32otu esa  silttelteWe have tried opmInatron ts, wtermcal chni eet osudat evh hae  wrehe We.blissop sa nograj cal terme Technimei  nhtiaen dhtd anplex bind olt tu mehah ep everviil S Civ theoi nsntamoepecC llfue Th. meheScnoc era sliated n at thes sectio sobkoele dnT.ih coterovdot  nescepsfo teve a yruos .eY  donohluhat te ting noth siht ni telkooberovn cahe tderiatnideo ln ynit he rules, which  era ehtagelab ls si tof sheemch. fo  ynae ehtnevd an tinul r, eslla ppylurel siwce, the differenIntroductionThis booklet provides information on the early retirement and redundancy benefits that are payable to premium, classic plus and partnership members.There are five categories: approved early retirement (AER); flexible early retirement (FER); flexible early severance (FES); compulsory early retirement (CER); compulsory early severance (CES). Early severance applies to those who leave early, under age 50, with at least 1 year’s service and to those aged 50 or over with less than 5 years service. Early retirement applies to those who leave early, aged 50 or over, with at least 5 years’ service.This booklet does not cover medical retirement. To find out more about this benefit, see the Civil Service Pensions website: www.civilservice-pensions.gov.uk or contact your pensions administrator.34671113151717181920ContentsIntroduction At a glance Approved early retirement Flexible early retirement Flexible early severance Compulsory early retirement Compulsory early severance Re-employment Partial retirement Options available for pension and lump sum Paying benefits Technical terms
4At a glanceFor each category, we explain You should be aware that the amounts how we work out the benefits used to work out compensation and also what the conditions are.benefits may be different from In all cases, your benefits will be based those used in working out classic on your final pensionable earnings plus and premium pensions.and your current reckonable service. At a glanceTDyeppea rotfu re BenefitsWho Qualifies Early payment of pension If you are a classic plus AER earned to leaving date or premium member, your  without reduction. employer may offer AER if you are 55 (50 if you were employed before 6 April 2006) and have at least 5 years’ service;You can also ask to leave under AER if you are 55 or over with at least 25 years’ service (but this is subject to your employer’s agreement).If you are a partnership member, you may apply to your pension provider to take your pension at any time from age 50, 55 if after 2010, but the annuity rate will depend on your age when you draw your pension.    FER FES CER CES  Lump sum compensation Employer may invite if  Annual payments to pension agelyeoaus ta r5e 50 or  soevrevri cwith at earse. Smaller annual payments  yfrom pension age Pension preserved for payment at pension age for classic plus and premium members Under FER partnership members can take their pension benefits from age 50 (55 from 2010).  Lump sum compensationEmployer may invite if you  Pension preserved fcolr apsasyicm ent 1a ryee uanrds esr e5rv0i cweit (h atd l teoa st at pension age for anplus and premium membersthose 50 or over with less than 5 years’ service). Lump sum compensation Employer will provide if you nnuaaare made redundant (or if you   SAllel r panynmueanl tps atoy mpeenntssi on ageapply when employer asks for fromma pension agevolunteers), aged 50 or over with at least 5 year’s service. Pension preserved for payment at pension age for classic plus and premium members CER partnership members can take their pension benefits from age 50 (55 from 2010)  Lump sum compensation Employer will provide if: Pension preserved for payment you are made redundantat pension age for classic orplus and premium membersyou apply when employer  Special terms for certain staff asks for volunteers.who were serving in 1987 and You must either be aged who have reserved rightsunder 50 with at least 1 years service or be 50 or over with less than 5 years’ service.5
6Approved early retirement (AER)Who qualifies?What are the benefits?There are two categories:We pay your pension before  employers may invite applications rpeednuscitioonn  afogre ,p awiitnhgo uitt  eaanryl y.from classic plus or premium ymembers aged 55 (or from age You may opt to take your pension 50 if employed before 6 April benefits in a different form. See 2006) and who have at least five the section Options available years’ qualifying service; andfor pension and lump sum. members of classic plus and Pensions in payment are increased premium who are at least 55 every year in line with the cost of and who have a minimum of living. These increases are paid to 25 years’ qualifying service all pensioners aged 55 or over.may apply to their employer.What about tax?In both cases, your employer decides Under current legislation, if you choose whether to accept the application to take a lump sum instead of some as the organisation has to meet the of your pension, this will be tax-free, costs of paying the pension early.subject to the Lifetime Allowance. If you are a partnership member, youYou will pay income tax on your  may apply to your pension provider pension as if it were earned income.to take your pension at any time from age 50 (55 from 2010) but the annuity rate will depend on your age when you draw your pension.Flexible early retirement (FER)Who qualifies?How do you work out the lump Employers may invite those aged sum compensation?50 or over who have at least five The lump sum compensation years qualifying service to retire has two elements:because of limited efficiency, limited  3/80 x your final pensionable postability or restructuring.earnings x a notional service What are the benefits?enhancement, plusWe pay you: an element recognising that you  a lump sum compensation will have to wait until pension payment when you leave;age for the full value of your  an annual compensation pension lump sum. (You do not payment (ACP) until you pgeatr tthnies reslheimp epnet nifs iyoonu  ahcacvoeu an t).reach pension age; and a smaller ACP or a further lump sum This is worked out as follows:when you reach pension age, unless 3/80 x your current reckonable you are in partnership. partnership service x your final pensionable members may only receive a earnings x factor. (See table further lump sum at pension age.on page 8 for the factors.)7