These compensation terms applied up to 31 March 2010

Angela Hudson

Description

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 ...

Informations

• Publié par: Orzu
• Nombre de lectures: 102
• Langue: English

Extrait

          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.uk This booklet is published by Civil Service Pensions. © Crown Copyright February 2009 Printed by St Ives Direct ERRCPPP Civil Service Compensation Scheme (CSCS) Early retirement and redundancy for classic plus, premium and partnership pension account members – a guide to what is available

32 otu esa  silttel te We have tried  opmInatron t s,  w termcal chni eet osudat evh hae  wrehe We.blissop sa nograj  cal terme Technimei  nhtiaen dhtd anplex bind olt tu mehah ep ev erviil S Civ theoi nsntamoepecC  llfue Th. meheScnoc era sliated  n at thes sectio  sobkoel e dn T . ih coterovdot  nescepsfo teve a yr uos .eY  donohluhat te ting noth siht ni telkoob erov n ca he tderi atnideo ln ynit he rules, which  era eht agelab ls si tof sheemch . fo  ynae ehtnevd an tinul r, eslla ppylurel siwce, the differen Introduction This 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. 3 4 6 7 11 13 15 17 17 18 19 20 Contents Introduction 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

4 At a glance For 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 glance T D y e p p e a   r o t f u   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 age l y e o a u s   t a   r 5 e 50 o ’ r     s o e v r e v r i   c with at  earse. • Smaller annual payments   y from 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 f c o l r a p s a s y ic m   ent  1 a   r y e e  u a n r’ d s  e s r  e 5 rv 0 i   c w e it  ( h at d  l  t e o a   st  at pension age for  an plus and premium members those 50 or over with less  than 5 years’ service). • Lump sum compensation Employer will provide if you  nnuaa are made redundant (or if you  • •     S A lle l  r  p an y n m u e a n l  t p s  a to y   m p e e n n t s s i   on age apply when employer asks for fro m m a  pension age volunteers), 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 redundant at pension age for classic or plus 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 rights’under 50 with at least 1 year’s  service or be 50 or over with less than 5 years’ service.5

6 Approved early retirement (AER) Who qualifies?What are the benefits? There are two categories:We pay your pension before  • employers may invite applications  r p e e d n u s c i ti o o n n     a fo g r e   , p   a wi i t n h g o   u it t     e a a n r y l   y. from classic plus or premium  y members 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, you You 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, plus We 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 p ge a t r  t t h n i e s r e s l h e i m p  e p n e t  n if s   i y o o n u     a h c a c v o e u  a n   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