CSCS impact examples

Our examples show that planned cuts to redundancy pay are huge

The government made an offer to the unions on 26 September which will slash civil service redundancy terms.
We have created a number of examples to show the impact of the changes on staff in a range of circumstances, considering services and salary. 

There are currently 3 ways that staff leave the civil service under the CSCS:

What the proposals mean for you

Current CSCS

Proposed CSCS

 

1 month's salary per year of service

3 weeks' salary per year of service

 

Capped at 21 months' salary for voluntary redundancy and voluntary exit

Capped at 18 months' salary for voluntary redundancy and voluntary exit

 

Capped at 12 months' salary for compulsory redundancy

Capped at 9 months' salary for compulsory redundancy

 

Employer funded access to early pension option when reach minimum pension age (50 with Classic and Premium/ 55 with Nuvos and Alpha)

Employer funded access to early pension only after age 55, but to then track 10 years behind state retirement age

 

6 months' notice for compulsory redundancy

3 months' notice for compulsory redundancy


Examples 

Here are our worked examples of how these proposals will affect some typical staff in the event of exit or redundancy.

Hamish has 30 years’ service and is paid £30,000 a year. 

He is currently entitled to £52,500 on a voluntary redundancy.

Under the proposed new terms his entitlements are:

  • Voluntary redundancy £45,000 (-14%).

Jane has 20 years’ service and is paid £15,000 a year. 

She is currently entitled to £38,333 on a voluntary redundancy.

Under the proposed new terms her entitlements are:

  • Voluntary redundancy £28,161 (-27%).

Joe is 52, with 30 years service in the Classic Pension scheme and a salary of £25,000.

Under current terms he would receive an annual pension of £9,375 (worth £75,000) and an immediate lump sum of £28,125. Under the government’s proposals, Joe would no longer be eligible to have an unreduced pension (only available in future from age 60), with cash compensation reduced to 3 weeks pay per year of service. This means that Joe would only receive £31,250 at the time of leaving.

 
Jenny has worked part time for 14 years, with a salary of £20,000 full-time equivalent, giving her 7 years reckonable service.
If Jenny was made compulsorily redundancy on current terms she would get £13,417. Under the proposed terms she would receive £9,188, or 32% less (please note: we are awaiting confirmation from he cabinet Office about how the redundancy cap will be implemented for part-time staff).
 
Mary has worked for 3 years full time and 8 years part time, giving her 7 years reckonable service, at a full-time equivalent salary of £25,000. If Mary was made compulsorily redundant under the proposals she would receive £10,097, or 31% less than the £14,641 she would receive under the current arrangements. 

Note: The above amounts are paid on voluntary redundancy on the basis that the pension is not reduced (because it is being paid before normal pension age) and the cost of buying out the reduction makes use of the redundancy compensation payment, in this case £43,750 (21 months’ pay). If the amount needed to buy out the reduction is more than the compensation amount then the employer will top-up and pay the extra. If there is compensation money remaining this will also be paid at the time of leaving.

 

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