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- Voluntary Severance/Early Retirement (VS/ER)
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)
Complete the form at https://shorturl.at/hjpz5
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
Once the decisions have been confirmed regarding VS/ER applications, there may not be much time before those approved to leave exit the organisation. To assist with this we’ve put together a list of things to bear in mind to ensure you deal with the practicalities, capture essential knowledge and make sure your employee(s) leave on a positive note feeling valued for their contribution at ACC. We’ve also included a short section about employees whose applications are not supported.
Practicalities for managing employees who are leaving
Workload
Things to think about:
- How and when are you communicating what’s happening to the rest of the team and other relevant people
- What are your plans for making best use of the time the employee has left with you
- How are you going to allocate the employee’s on-going work and projects
- With fewer people in the team, it’s likely that you will need to re-prioritise the work of the team/ distribute jobs differently to ensure you continue to deliver the priorities of your service:
- You may want to revisit your service and team plan – are there pieces of work that are not contributing directly to the key outcomes in the plans that could be de-prioritised?
- For work that is continuing – can this be done in a different way? Could it be done more efficiently? How might you engage and involve your team to work out the best way to do this – eg allocating work based on existing strengths or providing opportunities for team members to gain more experience and development in certain areas (see guidance here on managing your team’s workload).
- If the person who is leaving manages a team, what new arrangements are you putting in place? You may wish to speak to your Organisational Change and Development Team in regards to interim arrangements and ensure CoreHR is updated so that the reporting line for the team is amended.
Knowledge Capture and Exit Interview
- During the employee’s time at ACC (especially those with many years’ service) they will have built up a wealth of knowledge, key contacts and skills which are of real significance to the organisation. It’s important we capture this for business continuity purposes to ensure continued service delivery.
- Thinking ahead. The VS/ER process will likely happen again and it may be that you are already aware of people interested who have an application approved in the next VS/ER cycle.
Housekeeping
- Ensure the employee returns their ID badge, keys to lockers/cabinets, PPE and any IT equipment such as laptops and mobile phones
- Notify Digital and Technology and other system owners that the person is leaving
- Ensure any outstanding mileage and expenses are submitted
- Ensure any absences are closed off
- Please remind the employee to email or print off payslips and P60s before they leave as they will not be able to access CoreHR after they leave the organisation. They will receive their final payslip and P45 via post to their home address.
Valuing people’s contribution
- For any colleague who is leaving make time to thank them for their service and contribution to ACC. You’ll know your employee and what might be the best way to do this effectively for them
- Remember – even though the person is no longer working here – they are still ambassadors for the organisation and the extent to which they’re likely to fulfil that role will depend to a large extent on how positive their exit experience has been
What about employees’ requests for VS/ER that aren’t approved?
You may also have employees whose applications have not been supported through the current VS/ER process, this could be for a range of reasons; for example they provide a critical service or function, current staff shortages or that leaving will have an adverse impact on service delivery.
Understandably the person may be disappointed. It’s important that you have a conversation with them as soon as possible, so that they are; clear on why their request was not supported and the criteria that was used to arrive at this conclusion. Depending on how resilient the person is you might need to give extra consideration to how you might motivate the individual and keep them engaged.
The purpose of this section is to:
- Recap some of the key things to bear in mind and action to take before you leave the organisation
- Alert you to information that could be useful for your future beyond ACC
- Flag the support which is available to you
Some practicalities to bear in mind:
Informing Others
- Let people know you’re leaving; especially those outwith your immediate team and those you are working on particular projects with – this way they can start to plan ahead and arrange handovers
- Cancel any meetings or appointments that are due to take place after you leave or arrange a substitute if this is more relevant
Workload
- Chat to your line manager about the best way to use the remainder of your time in ACC, especially if you’re not working your notice
Capturing your knowledge and sharing your experience of working with ACC
- During your time at ACC you’ll have built up a wealth of knowledge, contacts and skills which are greatly valued by the organisation. It’s important that you ensure key knowledge is transferred to others and is available to assist in future service provision.
Housekeeping
- Get your files/emails in order (if they’re not already) so that it’s easy for others to pick up
- Ensure you hand back your badge, any keys to lockers/ cabinets, PPE and any IT equipment such as laptops and mobile phones
- Please ensure you print or email Payslips and P60’s to your personal email as you will be unable to access CoreHr once you leave.
Using up any outstanding annual leave
As mentioned in your letter, you should ensure that you take the relevant proportion of your annual leave before your leaving date, as payments in lieu will not be granted. You can contact AskHR@aberdeencity.gov.uk if you are unsure how much leave you still need to take.
Pension Advice
For specific advice on your pension please contact the relevant provider:
- North East Scotland Pension Fund
- Tel: 01224 264264
- Email: pensions@nespf.org.uk
- Scottish Public Pensions Agency
- Tel: 01896 893000
What about my future beyond ACC?
Go here to find out about a range of options for your future beyond ACC
Support for Your Mental Health and Wellbeing
Our team of Mental Health First Aiders
are also on hand to help. A full list of them can be found by clicking the button below.
Further Employee Support can be found on SharePoint
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