You are:

Civil service compensation scheme - possible effect in MoD

10 September 2009

You will all be aware of the recent proposal from the government to change the terms of the civil service compensation scheme (CSCS).

The CSCS sets out the redundancy terms a member would get if they were made compulsorily redundant or are early retired.

The employer states that their proposals are ‘fair’, but if you take a number of examples the effect is clear – there is less money for the majority of staff both now and in the future.

The examples below are of someone with 20 years service aged 41 and 51 being made compulsorily redundant and currently earning £24,000:

  • Age 41 current entitlement-£72000 new entitlement (under the proposals from the employer)-£48000
  • Age 51 current entitlement immediate payment of enhanced pension £8000pa immediate payment of enhanced lump sum of £24000 and additional lump sum of £12000. New entitlement (under the proposals from the employer) -£48000 and an unenhanced pension and lump sum paid at age 60.

Part time staff are particularly hard done by, both in the calculation of compensation and also they may be less able to find ‘suitable alternative employment’ due to restricted options in terms of hours or locations.

The compensation scheme proposals also cover voluntary redundancy arrangements and it is proposed that these will be delegated to departments and may be as low as statutory rates. The proposals do not affect the current arrangements for those leaving on inefficiency grounds but there is a clear employee agenda to attack these in the future.

A number of members have asked us if what the employer is doing lawful, as it could be seen as breaching contractual terms. Our union is actively pursuing the legal avenues on all aspects of the proposals. We also need to respond collectively and individually to management consultation.
The PCS national executive committee (NEC) will be consulting members on how to respond further to these unacceptable arrangements.

What does this mean for PCS members in MoD?

If you find yourself at risk of redundancy or are considering a voluntary release offer then inform us immediately.

Please keep us informed of your views and try to attend the forthcoming workplace meetings. PCS needs all members to support the campaign to fight these plans.


 

View all News

Social Bookmarking

How to use social bookmarking