Northern Ireland Further Education Colleges. Voluntary Exit Scheme FREQUENTLY ASKED QUESTIONS

Transcription

1 Northern Ireland Further Education Colleges Voluntary Exit Scheme FREQUENTLY ASKED QUESTIONS ***Please note that more detailed information concerning the terms of the Voluntary Exit Scheme is set out in the Scheme Information Booklet which is available at CONTENTS SECTION ONE SCHEME LAUNCH AND ELIGIBILITY 1. Why is a Scheme needed? 2. How will the Scheme be funded? 3. When will the Scheme launch and close? 4. Will the Scheme run over a number of years? 5. Who is eligible to apply for the Scheme? 6. Who cannot apply under the Scheme? 7. I work part-time, compressed hours, reduced hours or am partially retired. Can I apply for the Scheme? 8. Does the Scheme apply to staff over pension age? 9. I am on my probationary year. Can I apply? 10. I am not a member of a pension scheme. Can I apply? 11. Can I apply for the Scheme if I am on sickness absence? If so, must I return to work first? 12. Can staff on career break, or about to start a career break, apply? 13. Can staff on secondment, paid or unpaid leave of any kinds, or on temporary transfer apply? 14. How will staff who are on long term leave or without access to work s be kept informed? SECTION TWO BACKGROUND 15. Has the College taken any other measures to reduce its pay bill? 16. Would natural wastage generate the same savings? 17. How many staff will be released under the Scheme? 18. Has Trade Union Side been consulted? 1

2 SECTION THREE SCHEME PROCESSES, LAUNCH AND APPLICATION 19. How will I be notified of the terms of the Scheme? 20. How can I apply to leave under the Scheme? 21. Will I receive a quote of how much my compensation payment would be? 22. How will I know how much pension I would be entitled to? 23. If I am selected to leave under the Scheme, when will I receive my compensation payment? 24. Will everyone who is selected leave at the same time? 25. How much notice will I be given if I am selected to leave under the Scheme? 26. Can I change my mind once I apply? 27. What is my leave entitlement if I am selected to exit under the Scheme? SECTION FOUR COMPENSATION AND PENSIONS-RELATED 28. What figure is used to calculate the compensation payment? 29. How would basic salary be calculated if a staff member has been off sick and on either half-pay or no pay? 30. Does basic pay on which the compensatory sum is calculated for teaching staff include Deane and Threshold payments, or not? 31. How are compensation payments for part-time staff calculated? 32. I am currently on temporary promotion. Will my higher salary be taken into account? 33. Will there be any restriction on payments to staff close to the normal scheme pension age? 34. Can I also take my pension benefits at the same time if I am selected to leave? 35. Is my Compensation Payment Taxable and if so at what rate of tax? 36. Will any pension lump sum that I am entitled to be affected by any lump sum I get through the Scheme? 37. I am not a member of any Pension Scheme. What does this mean in terms of what I am entitled to? 38. How do you know which category you fit into for the normal scheme pension age under NITPS, i.e. age 60 or age 65? 39. Is time spent on a career break taken into consideration when working out the number of years service an individual has? 40. A. Will my years as a part time lecturer counts towards my years service with the college before becoming an Associate Lecturer? B. will service with another employer in the sector be included in the calculation? 2

3 SECTION FIVE GENERAL 41. Will a compensation payment affect the social security or tax-related benefits I am currently receiving or that I would be entitled to if I leave under the Scheme? 42. Where can I get additional financial information? 43. If I leave under VES, can I work in FE again? 44. If a member of staff member of staff does not express an interest in VES by the closing date for expressions of interest, and their post is declared to be redundant at a later stage, say in 6 to 12 months time, would the member of staff be able to avail of the terms of the VES or would there just be a statutory redundancy payment available or would there be some other scheme to deal with this? 45. The terms expression of interest and application are referred to in the documentation. Are these the same thing or is there an initial expression of interest and at a later stage an application? 3

4 SECTION ONE - SCHEME LAUNCH AND ELIGIBILITY 1. Why is a Scheme needed? The Scheme is necessary to primarily address significant budget pressures facing Colleges in the context of the agreed budget but is only one of a range of measures being implemented to deliver the required pay-bill reduction. 2. How will the Scheme be funded? The Scheme will be funded through the facility provided by the Stormont House Agreement, which gave the Northern Ireland Executive access of up to 700m over four years to fund early exit schemes across the public sector in Northern Ireland. 200m is available in each of the first three years and 100m in the fourth year. 3. When will the Scheme launch and close? The Scheme will be launched on Monday 1 October 2018 and will be closed for applications on Friday 12 October 2018 at 12:00 noon. Late applications will not be considered. 4. Will the Scheme run over a number of years? It is envisaged that the Scheme will not run beyond the year due to funding. 5. Who is eligible to apply for the Scheme? The qualifying date for the purposes of the scheme is Monday 1 October The following categories of staff are eligible: i. Staff who, at the qualifying date, are permanent College employees, whether fulltime or part-time; ii. Staff on secondment; iii. Staff who, at the qualifying date, are on career break or have agreed a career break commencement date; iv. Staff who have been formally notified that: a. a disciplinary investigation or capability procedures have commenced; or b. they are subject to such action which could potentially lead to dismissal before the College selects those staff who are to leave under the scheme; or c. they are being considered for ill health retirement. 4

5 However, a decision on selection under the Scheme will not be taken until the relevant procedures have been concluded, including all appeal stages. Where staff are formally notified that they have become subject to a disciplinary investigation or capability procedures (which potentially could lead to dismissal) between the date of selection for release under the scheme and their leaving date, their application will be put on hold until the disciplinary or capability proceedings have been concluded including all appeal stages. 6. Who cannot apply under the Scheme? The following categories of staff are not eligible: i. Casual, temporary and fixed term staff; ii. Staff who have been notified that they are due to transfer to another employer under TUPE arrangements; iii. Staff who have, by the qualifying date, an agreed exit date due to resignation, ill-health retirement, voluntary exit under another scheme after the qualifying date or who have been given a dismissal date for disciplinary or capability. Where an individual intends to avail of any entitlement to appeal under any of the above processes, they may apply for voluntary exit but a decision on their selection under the Scheme will not be taken until the appeal process is completed; iv. Staff who have notified the College, by the qualifying date, of their intention to retire. 7. I work part-time, compressed hours, reduced hours or am partially retired. Can I apply for the Scheme? Yes. You can apply for the Scheme in the normal way. 8. Does the Scheme apply to staff over pension age? Yes. The Scheme applies to staff regardless of age. 9. I am on my probationary year. Can I apply? Yes, you can apply for the Scheme in the normal way. 10. I am not a member of a pension scheme. Am I eligible to apply? Yes, you can apply in the normal way. 11. Can I apply for the Scheme if I am on sickness absence? If so must I return to work first? 5

6 Staff on sickness absence can apply without first having to return to work. However, Voluntary Exit arrangements do not apply if you have, at the Scheme launch date, been granted retirement on medical grounds, or if you have been given a date for dismissal under disciplinary or capability. 12. Can staff on career break or about to start a career break apply? Yes, staff on career break, or those staff who, by the qualifying date, have agreed a career break date commencement date, are eligible to apply. 13. Can staff on secondment, paid or unpaid leave of any kind, or on temporary transfer apply? Yes, these groups of staff are eligible to apply. 14. How will staff who are on long term leave of any sort or without access to work s be kept informed? Staff should provide an alternative contact address or information can be posted to individuals home address in the event they do not have an alternative address. 6

7 SECTION TWO - BACKGROUND 15. Has the College taken any other measures to reduce its pay bill? The College has undertaken a range of strategic interventions before launching a voluntary exit scheme, however these alone will not generate the pay bill savings required by the College. 16. Would natural wastage generate the same savings? Natural wastage in the College tends to be relatively low and even alongside the other strategic interventions, this would not be enough to generate the pay bill savings required. 17. How many staff will be released under the Scheme? The numbers released under this Scheme will be constrained by the number of applicants, the budget available to fund compensation payments and the need to manage the exercise in such a way that will ensure that Colleges can continue to meet their current and future needs. 18. Has Trade Union Side been consulted? Yes. Colleges have consulted with all recognised Trade Unions on the terms of the Scheme. 7

8 SECTION THREE - SCHEME PROCESSES, LAUNCH AND APPLICATION 19. How will I be notified of the terms of the Scheme? All staff will receive an confirming the details of the scheme, eligibility criteria, the timelines and application process. 20. How can I apply to leave under the Scheme? Applications for the Scheme should be submitted via or hardcopy. The to staff will outline how staff can apply to leave under the Scheme. 21. Will I receive a quote of how much my compensation payment would be? The College will provided an on-line calculator which staff can use to determine an estimate of their compensation payment. This is an estimate only which may differ from your actual compensation payment. 22. How will I know how much pension I would be entitled to? Due to the number of staff eligible to apply for the Voluntary Exit Scheme and the tight timescales to which the Scheme needs to be delivered, Teachers Pension Branch and NILGOSC will not be in a position to provide all eligible staff with a quote of compensation benefits as part of the application process. However, for members of NITPS an estimate of the benefits can be found at the following links: For members of NILGOSC an estimate of pension benefits can be obtained from If I am selected to leave under the Scheme when will I receive my compensation payment? It is anticipated that normally you will receive your compensation payment in your final salary which will be the month in which your last day of service occurs. E.g. if your leaving date is 15 th June, you would receive payment in your June salary. 24. Will everyone selected leave at the same time? No. It is expected that staff will be selected to leave at various times, with actual dates being subject to the College s business needs and funding being available. 8

9 25. How much notice will I be given if I am selected under the Scheme? You will be given your normal contractual notice. Your notice period, if you accept, will begin at the deadline by which you expressed interest in exiting under VES. 26. Can I change my mind once I apply? Staff are free to withdraw their application at any stage of the process with the following exception. Once you have been selected and provided with a formal offer, you will be required to confirm your acceptance or rejection of the offer. At that stage your acceptance or rejection will be binding and you will be unable to change your mind afterwards. 27. What is my leave entitlement if I am selected to exit under the Scheme? Your annual leave entitlement will be subject to pro-rating, depending on your leaving date. 9

10 SECTION FOUR - COMPENSATION AND PENSION RELATED 28. What figure is used to calculate the compensation payment? Your monthly salary will be used to calculate your compensation payment. 29. How would basic salary be calculated if a staff member has been off sick and on either half-pay or no pay? Actual contractual pay would be used to calculate the compensation payment. i.e. the normal salary that would have been received had they not been absent. 30. Does basic pay on which the compensatory sum is calculated for teaching staff include Deane and Threshold payments, or not? Deane and Threshold Payments, where these are paid to lecturers, form part of basic salary for the purposes of calculating entitlement to a compensation payment. 31. How are compensation payments for part-time staff calculated? The calculation will be based on your normal monthly salary. 32. I am currently on temporary promotion. Will my higher salary be taken into account? If you are currently on temporary promotion (for a duration of at least 2 years at the qualifying date of the scheme) and College Management expects this to last until your last day of service, you should use your salary at your promoted grade to work out your compensation payment. 33. Will there be any restriction on payments to staff close to the normal scheme pension age? There will be no restriction on payments to staff close to the normal scheme pension age. 34. Can I also take my pension benefits at the same time if I am selected to leave? Staff who have reached their minimum scheme pension age currently 55 for both schemes can have access to their pension, though this may be reduced See points 18 and 19 of the Voluntary Exit Scheme. 35. Is my Compensation Payment Taxable and if so at what rate of tax? Yes. The first 30,000 of the compensation payment is tax free. Any amount in excess of 30,000 is subject to HMRC Rules. 10

11 36. Will any pension lump sum that I am entitled to be affected by any lump sum I get through the Scheme? Your pension lump sum is not affected by any compensation lump sum you may receive. 37. I am not a member of any Pension Scheme. What does this mean in terms of what I am entitled to? Compensation payments are determined by the rules of the Voluntary Exit Scheme which currently state: a. One month s pay per full year of service up to 21 months. 38. How do you know which category you fit into for the normal scheme pension age under NITPS, i.e. age 60 or age 65? You should verify the category you fit into with your pension provider. 39. Is time spent on a career break taken into consideration when working out the number of years service an individual has? Service is not broken as a result of a member of staff having been on an approved career break and therefore will count as continuous service. 40. a. Will my years as a part time lecturer counts towards my years service with the college before becoming an Associate Lecturer? b. Will service with another employer in the sector be included in the calculation? a. Your continuous service is stated in your contract of employment. Previous service as a part time lecturer may have been recognised. You should check your contract to establish the relevant date. b. Yes, if service with another employer has been recognised. If so, the relevant date will be referred to in the individual s contract of employment. 11

12 SECTION FIVE - GENERAL 41. Will a compensation payment affect the social security or tax-related benefits I am currently receiving or I would be entitled to receive if I leave under the Scheme? As each individual s circumstances are different, you should contact HMRC or your local Social Security Office for advice. 42. Where can I get additional financial information? Individuals may wish to consult with an independent financial advisor but should be aware that they may be charged a fee for this service. This fee is not recoverable from Colleges. 43. If you accept Voluntary Exit from a Further Education College, can I work in Further Education again? If you accept VES from an FE College, there will not be any subsequent reengagement or re-employment by the Sector from which you exited, in any capacity for the period covered by the compensation payment. However, if you are re-engaged or re-employed in a non-permanent capacity in another college within a period shorter than the notional period of compensation you will be required to repay an element of the compensation payment. This repayment will be pro-rata based on the difference between the notional period of compensation, the pay differential and the gap between both employments e.g. if an individual leaves College A with 16 months compensation and is employed by College B after 7 months, at the same rate of pay, then they will be required to repay 9 months compensation to College A. When you accept the offer you confirm that you accept and agree to be bound by these terms. 44. If a member of staff does not express an interest in VES by the closing date for expressions of interest, and their post is declared to be redundant at a later stage, say in 6 to 12 months time, would the member of staff be able to avail of the terms of the VES or would there just be a statutory redundancy payment available or would there be some other scheme to deal with this. The terms of the VES are only applicable for those who express an interest in the Scheme by submitting the agreed pro forma by the closing date for expressions of interest in the scheme. Should an individual not express an interest in the Scheme and in the event of a redundancy situation arising at a later time, the College would deal with the matter in accordance with its Redundancy Policy. Compensation would be paid, as a minimum, in accordance with statutory redundancy pay. 12

13 45. The terms expression of interest and application are referred to in the documentation. Are these the same thing or is there an initial expression of interest and at a later stage an application? They are the same thing. Therefore, if anyone is interested in being considered for voluntary exit they need to submit their form by the closing date specified. All forms received are received on a without prejudice basis with no commitment on the part of the College to offer, nor on the part of the member of staff to accept, voluntary exit. 13