Voluntary Severance/Early Retirement (VS/ER)

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Voluntary Severance and Early Retirement (VS/ER) are ways in which an employee can agree to leave the employment of the Council and receive a one-off payment (voluntary severance) or early access to their pension benefits (early retirement). In both cases, the calculations are based on the individual’s circumstances.

The costs of VS/ER are currently met using capital receipts and, as the Scottish Government has not removed this flexibility, at the moment, it means that we are still able to accept expressions of interest for the time being. ​​​​​​​

Please note there is a separate scheme for teaching staff so, if you are a member of the teachers’ pension scheme (STPS), you should consult the Policy for Teaching staff link below. 

If you have any queries regarding this particular process,  please contact VSER@aberdeencity.gov.uk.

Please note – an expression of interest does not commit either the Council (as the employer), or the employee, to any further action.

VS/ER Policies

Frequently Asked Questions

Voluntary Severance
If accepted, employees will receive a one-off lump sum of voluntary severance payment on termination of their employment.   VS will apply for employees who are under 50 or who joined the Local Government Pension Scheme after 2006 and are under 55. If you leave under VS you will not automatically have access to your pension benefits.

Early Retirement
If accepted, employees will gain immediate access to their pension benefits on termination of their employment. Early Retirement will apply at age 50 if an employee was in the Local Government Pension Scheme prior to 2006 and at age 55 if they were in the scheme after 2006. For those employees who have been members of the LGPS for less than 2 years they will receive a refund of pension contributions. The regulations and amendments that apply to LGPS members can be viewed on the NESPF website Home | NESPF

Voluntary Severance
If accepted, employees will receive a one-off lump sum of voluntary severance payment on termination of their employment.   VS will apply for employees who are under 50 or under 55 if they joined the scheme after 31 March 2009.

Early Retirement
Where an employee in the STSS qualifies under the pension regulations for early retirement (i.e. Pension Scheme Member aged 55 and over) they will gain immediate access their pension benefits with actuarial reduction with the consent of the employer.

Normally, those employees who are members of STSS and do not qualify for access to their pension benefits can receive a refund of their contributions.

The regulations and amendments that apply to the STSS members can be viewed on the Scottish Public Pension Agency web-site at  www.sppa.gov.uk/scot_teachers

Depending on the circumstances around your ER, you may be entitled to a redundancy payment. If this applies in your case, your estimate of benefits will include an estimated redundancy lump sum payment.

You will be eligible for voluntary severance if you meet the following criteria:

  • Those employees of the Council with at least two years’ continuous service.
  • Must be leaving the council prematurely on grounds of redundancy or efficiency. Your service will be able to verify these grounds and whether they apply, once we have received your note of interest

Eligibility for early retirement (ie the ability to access your pension benefits prior to your normal retirement age) will depend on which pension scheme you are a member of, when you first joined the scheme, and your age. Full details can found in the relevant policy documents for teachers Voluntary_Severance_Early_Retirement_-_Teachers.pdf (aberdeencity.gov.uk) or for all other employees Voluntary Severance Early Retirement Policy (aberdeencity.gov.uk)

No. Expression of interest and receipt of an estimate does not guarantee that you will be allowed to leave under VS/ER.  The estimate gives you information to help you decide if you wish to proceed beyond an expression of interest and formally be considered for VS/ER.  Each application will be assessed, and you will be advised whether it has been approved. This may take some time, please be assured you will be communicated with at the appropriate time. If successful, you will then need to make a formal declaration to indicate that you wish to be considered for release.

The qualifying service for calculating a severance payment is a minimum of 2 years’ continuous service with an organisation covered by the Redundancy Payments (Continuity of Employment in Local Government, etc.) (modification Orders), which cover local authorities and related bodies.  If you have had a break in service your benefits may be affected.  If you have any query regarding your continuous service, please contact the Employee Relations team at EmployeeRelations@aberdeencity.gov.uk

Where an employee has an application for voluntary severance/early retirement approved by the Council, there will be an expressed and clear undertaking that the employee shall not apply for or accept paid work for Aberdeen City Council for a period of at least 24 months from the last date of employment. This provision also includes returning as an agency worker or working for Aberdeen City Council as an independent consultant.

There is no right of appeal against this decision; however, the reasons behind your application being declined will be explained to you. It may be that it can be reconsidered at a future date.

 

The first £30,000 received is not taxable.  Thereafter, tax will be payable.

If you are currently in discussion with your manager around ill health retirement, please speak with your line manager to gain clarity on your specific circumstances.

Additional Information

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