Questions & Answers Voluntary Redundancy Scheme for certain grades in the Public Health Sector: Circular /2010

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1 Questions & Answers Voluntary Redundancy Scheme for certain grades in the Public Health Sector: Circular /2010 Q1. What is the deadline for applications under the scheme? Applications must be made by 19 November The deadline for formal and final acceptance by the applicant is 30 November Q2. What is the deadline for exit under the scheme? The absolute deadline for exit from the health service is 31 December There will be no exceptions to this deadline under any circumstances. Q3. (a) What grades are eligible to apply? The scheme applies solely to grades categorised as either management and administrative grades or general support staff in the HSE Census of employment and as set out in the Appendices to the relevant circular approving the scheme. Applications from management administrative grades will be prioritised above all support staff. Employees in the eligible grades who at 19 November 2010 have already accrued entitlement to preserved superannuation benefits (2 calendar years reckonable service) at that date, and who have not yet reached preserved pension age (60 or 65, as appropriate), are eligible to apply for the Voluntary Redundancy Scheme. For most people this means that those aged 60 or over will not be eligible to apply. However for people who are not entitled to retire before age 65 (new entrants since 2004 for example) the upper limit will be 64. (b) Who is not eligible to apply? i. employees who are not in the eligible grades ii. employees who have reached preserved pension age (60 or 65) on 19 November 2010 iii. employees who have not already accrued an entitlement to preserved benefits. Q4. What benefits do I get under the scheme? The benefits payable under this scheme are: (a) A severance payment of 3 weeks pay (actual earnings) per calendar year of service plus statutory entitlement under the Redundancy Payments Acts, or the equivalent, subject to an overall limit of (i) 2 years pay; or, if less (ii) one-half of the salary payable to preserved pension age.

2 (b) Preserved pension and lump sum payable on attaining preserved pension age (60 or 65 years of age, as appropriate). The condition at (a) (ii) above which caps the overall payments at 50% of salary payable to pension age will affect those close to normal retirement age (60 for most people). Note: Employees who pay modified PRSI rates (Class D) will receive the equivalent terms to those with statutory entitlements. Q5. What is the entitlement under the Redundancy Payments Acts? 2 weeks pay (actual earnings) per calendar year of service plus one bonus week. A week s pay under the statutory provisions is subject to an overall limit of 600. Q6. Is there a limit on the numbers who can avail of this scheme? The combined cost of this scheme and the voluntary early retirement scheme has been capped by Government at 400m. Subject to this condition, and to the prioritisation of management and administrative staff in all cases, there is not an upper limit on the numbers who can go. Q7. I transferred service into the HSE and I have a preserved pension entitlement but I am on probation in my current post can I apply to leave? Yes. Once you have already accrued an entitlement to a preserved superannuation benefit in the HSE, and have not yet reached preserved pension age, you are eligible to apply under this scheme. Q8. If I am eligible to apply for this scheme can I assume that my application will be approved? Management and administrative grades are being prioritised under the scheme. Yes, if you are in a grade categorised as management or administrative grades set out in the attached appendix and subject to the overall cap on the cost of the scheme not being breached. If you are in a grade categorised as general support staff set out in the attached appendix, you are eligible for the scheme and your application is likely to be successful but this will depend on the number of people from management and administrative grades who apply, who have first priority, and to adherence to the overall cap on cost. Q9. Will vacancies under this scheme be filled? No. In accordance with the existing Government decision to introduce a moratorium on the filling of posts by recruitment or promotion, vacancies arising from this scheme will not be filled. Q10. How do I apply?

3 An application to retire under this scheme must be made on a completed Form VS1 (attached to circular) to the Human Resources Department of your employment by the closing date of 19 November Q11. Can I reverse my decision to leave? The decision to retire is irrevocable after the deadline for formal and final acceptance (30 November 2010).

4 Q12. Can I be re-employed by my employer at a future date? Those who avail of this scheme will not be eligible for re-employment in the public health sector or anywhere else in the wider public service or in a body wholly or mainly funded from public moneys for a period of seven years, after which time any such re-employment will require the approval of the Minister for Finance. This provision also applies in the case of re-engagement on a contract for service. Q13. Can I opt for the voluntary early retirement (VER) scheme instead of this scheme? You may opt for the VER scheme if you aged 50 or over by 19 November 2010 and have entitlement to preserved superannuation benefits and have not reached preserved pension age. If you are under age 50, you can only apply under this voluntary redundancy scheme. Q14: How will any entitlement to professional added years be treated? Certain officers appointed to professional, technical and specialist posts may be eligible for added years on retirement under the LGSS either the Local Government Act 1926 or the Ad Hoc Scheme. Helpdesk At present under the Local Government Act 1926, an individual is entitled to a gross award of professional added years of up to 1/3 of their actual service, up to a maximum of 10 years. However, an individual who leaves service before the age of 60 is not entitled to any added years and if he/she retires between 60 and 65 the added years entitlement is reduced by the period between their date of retirement and their 65th birthday, e.g. a person aged 60 has their gross entitlement reduced by 5 years. The same rules apply to an award under the Ad Hoc Scheme. For the purposes of the voluntary early retirement and voluntary redundancy schemes, these terms are amended as follows: The gross award (i.e. one-third of actual service in the case of the 1926 Act or the gross Ad Hoc Scheme award) is reduced by 5 years and the remainder, if any, of the award (i.e. net award) is then pro-rated using the formula (CxA)/(A+B) where C is the net added years award; A is actual reckonable service and B is period between the date of leaving and 60th birthday. Spouses and Children s contributions in respect of added years will be charged in the normal way. All queries can be addressed to the HSE national helpdesk or s to ver2010@hse.ie

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