asked Her Majesty's Government:
How many civil servants over the age of 50 and below 50 years respectively have taken up the Department for Environment, Food and Rural Affairs voluntary redundancy scheme; and at what cost to the department; and [HL578]
What cost savings the Department for Environment, Food and Rural Affairs expects from its voluntary early redundancy scheme in the long term; and what is the immediate impact of the scheme on departmental costs; and [HL579]
How much money they anticipate will be saved by the Department for Environment, Food and Rural Affairs under its voluntary early retirement scheme. [HL580]
Based on overall departmental gross pay bill costs the estimated net savings from the voluntary early retirement and severance schemes in the current year and over the next three years will be:
VER VES Total 2007-08 £4.8 million £5.2 million £10 million 2008-09 £8.45 million £8.75 million £17.2 million 2009-10 £8.8 million £9.00 million £17.8 million 2010-11 £9.1 million £9.4 million £18.5 million
At 30 November 2007 271 civil servants over the age of 50 had accepted offers of early retirement and 288 civil servants under 50 had accepted offers of early severance under the schemes run by the department. The total cost of both retirement and severance elements of these schemes during financial year 2007-08 is estimated at £47 million.
asked Her Majesty's Government:
Whether officials of the Department for Environment, Food and Rural Affairs in the voluntary early retirement scheme aged 50 years and over can retire on an immediate full pension; and, if so, why this is being offered to those retiring early voluntarily. [HL581]
The Civil Service Compensation Scheme is a statutory scheme made under the Superannuation Act 1972. This sets out the compensation terms to be provided to civil servants on termination of contract. There are two main categories of compensation; namely, “flexible” and “compulsory” terms. For staff aged under 50 (or with short service), the compensation comprises a cash lump sum calculated by reference to age and length of service; the “compulsory” terms are more generous than the “flexible” terms. For staff aged between 50 and 60, pension benefits are paid early and service is enhanced by a maximum of six and two-thirds years. In addition, those departing under the “compulsory” terms receive a cash lump sum of up to six months’ pay.
The Civil Service Management Code sets out the circumstances in which the different categories of compensation should be used. While departments may, in some circumstances, have the flexibility to decide on the tariff to be offered, they cannot vary the underlying terms of that tariff.
Paragraph 11.6.3 of the Civil Service Management Code states:
“As a pre-redundancy measure, departments and agencies may call for volunteers to leave on compulsory terms in order to avoid compulsory redundancy procedures”.