皇冠体育app

皇冠体育app comes into effect today.听This follows months of discussions and is based on negotiations with five of the six Civil Service unions (FDA, Prospect, GMB, Unite, POA).听It is the largest reform of the scheme since 1987.

皇冠体育app CSCS sets out the terms for voluntary and compulsory redundancy.听皇冠体育app new scheme gives extra protection to the lower paid and those closest to retirement, whilst also setting a cap on payments to higher earners.

皇冠体育app unions have balloted their members on the terms of the new scheme.听Four of the unions (FDA, Prospect, GMB, Unite) have voted overwhelmingly to accept the new scheme.听皇冠体育app PCS and POA ballots are due to close early in the New Year.

皇冠体育app Minister for the Cabinet Office, Francis Maude, said:

This has not been a quick process, negotiations have been going on for several months - and indeed for several years before that.听But what the new scheme shows is that constructive negotiations with the unions can work and the result is a package that is fair for civil servants and fair for other taxpayers.听

From the start, we said we would do everything we could to engage with the unions on the best way to reform a scheme, which was unaffordable and way out of line which private sector and many public sector schemes.听During the negotiating process, we listened very carefully to what the unions involved had to say and took many of their comments on board.听I believe we now have a scheme which is fair, protects those who need the most support, addresses the inequities in the current system and is right for the long term.

Sir Gus O鈥橠onnell, Head of the Civil Service, said:

It was important that we achieved a scheme which is sustainable, affordable and fair. Terms based on proposals put forward during negotiations have always been our preferred way forward and I am grateful to the unions involved who worked extremely hard to help us reach a new scheme.

皇冠体育app key facts of the new proposed scheme are:听

Voluntary Redundancy

• Below normal pension age - one month鈥檚 pay per year of service up to 21 months with a taper of between a maximum of 21 months鈥� and 6 months鈥� pay for those approaching pension age
• Above normal pension age - one month鈥檚 pay per year of service up to a maximum of six months
• Staff who have reached minimum pension age (either aged 50 or 55) can choose to opt for early retirement on their current pension entitlement. Staff will be asked to surrender some (or all) of their severance payment to meet the cost of receiving this pension early.

听Pay thresholds听

• Staff earning less than 拢23,000 (on FTE basis) will be treated as if they earn 拢23,000 for the purpose of calculating their redundancy payments
• 皇冠体育appre will also be an upper pay threshold of 拢149,820. Staff will have their salary capped at this figure for the purpose of calculating their redundancy payments.

Compulsory Redundancy

• One month鈥檚 pay per year of service up to 12 months. All staff who may face compulsory redundancy will first have had the opportunity to exit under voluntary terms.

听Notes to editors

1. 皇冠体育app Superannuation Act received Royal Assent on 16 December 2010.听This Act removes the requirement for agreement of the Civil Service unions to any changes that could reduce the benefits of the compensation scheme.
2. After the Superannuation Act received Royal Assent, the Superannuation Act 2010 (Repeal of Limits on Compensation) Order 2010 was made by the Minister for the Cabinet Office on 17 December.
3. On 21 December the Civil Service Compensation Scheme (Amendment No.2) Scheme 2010 and the associated revisions to the Principal Civil Service Pension Scheme were laid before Parliament.
4. 皇冠体育app Civil Service Compensation Scheme (CSCS) sets out the level of compensation that Government departments can pay their staff if they are made redundant, whether on a voluntary or compulsory basis.听
5. Following commitments made in the Coalition agreement, in July this year the Government introduced the Superannuation Bill (now Superannuation Act) to Parliament to support reform of the compensation scheme. At the same time it opened negotiations with the Civil Service unions on a proposed new scheme.

CAB 235/10

For Cabinet Office press office contact details, .