Voluntary Redundancy/Early Retirement for Staff in AUPP/USS Pension Schemes
This scheme should not be considered in isolation. Employees looking to change their working pattern, job, leave or retire, may wish to arrange a “strictly confidential” meeting with their Human Resources Manager. Managers know the policies and procedures well and can guide employees through the many AU policies which support changes which can benefit work life balance, family arrangements, voluntary redundancy, early retirement, flexible retirement, etc.
1. Introduction to Voluntary Redundancy/Early Retirement
This fact sheet aims to provide details of voluntary redundnacy and early retirement schemes which may be of interest to staff.
The fact sheet applies to staff in the AUPP/USS Schemes.
Staff may wish to express their interest in, and thereafter make an application for, a voluntary redundancy payment or voluntary early retirement benefits in the interests of the efficient exercise of University functions.
2. Criteria for Eligibility
The scheme is a discretionary one and the VR scheme is open to applications from all staff who have continuous service of more than one year.
It should be noted that applications for VER will be at the absolute discretion of the University. Applications, where supported by the Head of Department / Institute Director, will require a clear business case written by the Head of Department /Institute Director for consideration by the University Executive.
3. Scheme with effect from 28 April 2017
Staff who apply for voluntary redundancy and are accepted will receive the following financial package:
- A service related payment of two weeks’ pay for each year of continuous service up to a maximum of 6 months’ pay.
If you have been paying continuously in to USS since 5 April 2006 and your application for voluntary redundancy is accepted, you can access your pension from age 50 if your post is made redundant. Staff aged 55 or over who have at least 5 years pensionable service in USS and who apply for VR may be eligible for early retirement in the interests of the efficient exercise of the University’s functions. If you have transferred into the scheme prior to 2009, the benefits you transferred in may be protected and you may be able to access these benefits without an actuarial reduction.
If you haven’t paid continuously in to USS since 5 April 2006 and your application for voluntary redundancy is accepted, you can access your pension at age 55 providing you have at least 5 years pensionable service.
If you are a member of the Aberystwyth University Pension Plan you can access your retirement benefits from age 55.
Should you wish to discuss an application or receive a quote, please contact honest broker – Martin Davies in Payroll (firstname.lastname@example.org or 01970 622033) if you are over 50 years of age. He will advise you if you are eligible to access your pension. If you are under 50 or if you are not eligible to access your pension (which may be determined by the date you joined and the terms and conditions in place at that time) please contact Sam Morrison in Human Resources (email@example.com or 01970 622054) or discuss with your Head of Department / Institute Director and/or the HR Manager/Team for your department.
Further clarification on your circumstances relating to pensions can be provided by Martin Davies.
When an initial enquiry is made to an honest broker, confidentiality to the staff member is guaranteed.
- The honest brokers established to receive applications for VS/VER are Martin Davies in the Payroll Department (firstname.lastname@example.org or 01970 622033) and Sam Morrison in Human Resources (email@example.com or 01970 622054)
- Once the figures have been relayed to the member of staff, they choose whether they wish to proceed or not. Should they wish to proceed they need to confirm this in writing to the honest broker. The honest broker will then inform the HR manager, who will then contact the line manager and/or Head of Department/Institute Director. Once this has been done, the honest broker will forward the details to the appropriate HR Manager to work with the Department/Institute on a business case to assess the business plan and benefits to the University.
- Staff are advised to take independent financial advice before making an actual application under the Scheme. The University cannot advise individuals on whether to make an application or not.
- Staff may withdraw from the process at any stage up to the date the University receives from them acceptance of the offer and confirmation of the leaving date.
- The University will consider all applications but will only agree to support an application if, in the University’s opinion, it is clearly and demonstrably in the managerial and financial interest of the University.
- Staff whose application is accepted may be expected to sign a settlement agreement which involves taking independent legal advice about the details of the agreement. The University will contribute £250 plus VAT towards these legal costs.