ULSTER UNIVERSITY. Voluntary Severance Scheme 2015/16

Transcription

1 ULSTER UNIVERSITY Voluntary Severance Scheme 2015/16

2 ULSTER UNIVERSITY VOLUNTARY SEVERANCE SCHEME 2015/16 The Voluntary Severance (VS) Scheme outlined below is only applicable to University staff on permanent contracts and will be financed through a Permanent Reduction in posts and pay costs funded from University U funds. Voluntary Severance 2015/16 is a discretionary scheme based on the University s Strategic Plan and the associated core strategies of Research and Teaching and Learning. In all decisions the Institutional and Managerial Interests of the University will be paramount. Introduction The Senior Executive Team (SET) has approved VS 2015/16 as part of an integrated strategy to address the budget cuts by the Department for Employment and Learning and the future strategic direction of the University. Eligibility VS 2015/16 is a voluntary scheme which only permanent staff who meet the following eligibility requirements can apply to for consideration. The applicant is a permanent member of staff; and The applicant has not already indicated / confirmed they are leaving the employment of the University; and The University has not already confirmed that the applicant is leaving the University. N.B. No member of permanent staff has a right to leave employment of the University under the terms of VS 2015/16, and there will be no right of appeal for any applicant against a decision to refuse the granting of VS 2015/16. Voluntary Severance Payment Under the terms of the scheme permanent members of staff whose applications are approved will receive a VS payment in accordance with the criteria listed in the Tables 1 and 2 below. The VS payment will be calculated using an individual s basic salary at the date of leaving. For the avoidance of doubt, salary excludes any and all additional allowances to Basic Salary. For part-time permanent staff the payment will be based on their pro rata Basic Salary. 1

3 Table 1: Staff under age 63.5 at the date of leaving Continuous Service Up to and including, 6 Years More than 6 Years 6 months salary VS Payment 1 month s salary for each complete year of service up to a maximum of 18 months salary Table 2: Staff aged 63.5 or over at the date of leaving VS Payment will be the Lower of: (a) the amount calculated in Table 1; or (b) 1 month s salary for each complete month to the member of staff s 65 th birthday, subject to a minimum payment of 6 month s salary Staff over the age of 65, at the date of leaving, will receive a payment of 6 months salary N.B. In accordance with current tax legislation, Income Tax (Earnings and Pensions) Act 2003 Section 403, it is expected that the first 30,000 of a VS Payment will not be subject to deductions for tax or national insurance. Pension Members of staff who receive a VS payment and are aged 55 or over at the date of leaving and who are members of the USS or NILGOSC pension schemes may be eligible to access their pensions early. However an actuarial reduction to a member s Pension and Tax Free Lump Sum may apply under the current terms of these schemes due to the fact that these benefits would be brought into play for early payment i.e. before the normal pension age of these schemes, which is currently 65. Members who receive a VS Payment may however elect to use that VS Payment flexibly. For example a member of staff could elect to take part, or all of the VS Payment as cash (subject to the Tax Free Limit 30k highlighted above), or pay the whole or part of the VS payment into their pension. In exercising the latter option, the VS payment could be used to minimise the effects of any actuarial reduction due to early payment of pension benefits. 2

4 Staff who are eligible to access their pension benefits early under the terms of their respective pension scheme but who decide not to do so, will become a deferred member of their pension scheme. Further information on the terms of the pension schemes (USS and NILGOSC) in respect of the above may be obtained via the Salaries and Wages Department Pensions Officers, Alastair Grange ( a.grange@ulster.ac.uk (Ext: 66257)) and Kim Larkham ( ke.larkham@ulster.ac.uk (Ext: 66412)). Application Process A permanent member of staff who wishes to apply and be considered for VS 2015/16 must complete the Application Form attached in Appendix 1 and submit this to their Dean / Director / Head of Department. A copy of the Application Form must also be submitted to the Director of Human Resources. The final deadline for submitting an Application Form is 30 October Members of staff are encouraged however to submit their Application Form as early as possible. Submission from Dean / Director / Head of Department When a Dean/ Director/ Head of Department receives an Application Form they will arrange a meeting with the member of staff to discuss their application. At this meeting the Dean/ Director/ Head of Department will provide an indication as to whether or not they support the application. Where the Dean/ Director/ Head of Department does not support the application, the individual will have the reasons clearly explained. Support for applications from Joint Appointment staff will be subject to the Dean/ Director/ Head of Department obtaining written confirmation from the relevant body that it: i) Agrees to the individual leaving under the scheme; and ii) Will fully fund the relevant share of the severance payment NB All applications will be considered against the University Strategic Plan and the University s Core Strategies and also against the DEL Funding Cuts. For applications that are supported, the Dean/ Director/ Head of Department will be required to confirm that this will result in a permanent reduction in Pay Costs in the specific area concerned. A permanent reduction in Pay costs may be achieved through either the applicant s post not being replaced, or by the removal of an alternative post within the same School/ Department/ Directorate. Where a case is supported, but necessitates a reorganisation of activity, the post to be suppressed will require to be identified. The Dean/ Director/ Head of Department will collate information on all applications received and forward their submission to the Director of Human Resources, clearly indicating the reasons why each application has, or has not, been supported. 3

5 Decision and Notification of Outcome N.B. Approval of applications under VS 2015/16 will be discretionary and based solely on the Strategic and Managerial interests of the University. To ensure that decisions are appropriate, consistent and equitable the Director of Human Resources will convene a meeting of the Budget Review Group (BRG) to assess applications on the following basis: i) meets eligibility requirements; and ii) delivers the required Post/Pay Cost Savings; and iii) enables the implementation of the University s Strategic Plan and associated Core Strategies of Research and Teaching and Learning. To repeat. No member of staff has a right to leave employment of the University under the terms of VS 2015/16 and there will be no right of appeal against the decision of BRG. Following the meeting of BRG the Human Resources Department will write to all staff, who have applied, to notify them of the outcome of their application. If the application has been approved, the individual will be required to confirm acceptance of the terms of the offer by 31 January If the individual does not respond by this date the opportunity to avail of VS 2015/16 will be deemed to have lapsed. Where an individual confirms their acceptance of the offer then appropriate arrangements will be made for this to be implemented and this will be communicated to the individual by the Human Resources Department. The latest date on which VS 2015/16 may take effect is 30 April Leaving dates before this may be possible by agreement between the Dean/Director/Head of Department and the member of staff. Timetable 01 September 2015 VS 2015/16 Opens for Applications 30 October 2015 VS 2015/16 Closes for Applications 16 November 2015 Dean / Director / Head of Department Submissions 30 November 2015 BRG Meeting 18 December 2015 Outcomes notified to Staff 31 January 2016 Deadline for Staff to Accept the offer of VS 2015/16 30 April 2016 Final Date for VS 2015/16 to take effect 4

6 ULSTER UNIVERSITY Appendix 1 APPLICATION FORM FOR VS 2015/16 NAME: CAPITAL LETTERS NATIONAL INSURANCE NUMBER STAFF NO SCHOOL / DIRECTORATE / DEPARTMENT CAPITAL LETTERS PREFERRED LEAVING DATE: (If prior to 30 April 2016) D D M M 2 0 DECLARATION BY APPLICANT: I wish to apply for VS In doing so I understand and accept that this application does not represent a commitment to proceed with VS I understand that, if my application is approved, I will receive written confirmation of the terms of the offer and will be required to confirm my acceptance by no later than 31 January If I do not confirm my acceptance by 31 January 2016, I agree that the opportunity to avail of VS 2015 will have lapsed. I understand that I am free to withdraw my application at any time prior to 31 January I understand and accept that there will be no right of appeal against the decision of the BRG. Signed: Date: Please submit this form to Dean / Director / Head of Department and forward a copy to Mr R Magee, Director of Human Resources, Room 8M22, Jordanstown Campus, no later than 30 October