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Members’ Benefits
Resignation & dismissal: 3.contents
Members’ Benefits
Section 3
benefits\3.m
Resignation and
dismissal
(1)
Issue 5: April 2006
Resignation & dismissal: 3.contents
3.1
Members’ Benefits
Resignation and opting out
Preserved awards
Qualifying for a preserved award
3.2
Making the award
Calculating and authorising the award
Amount of the award
Commuting the retirement lump sum
Refunds of family benefit contributions
Recovery of debts
Allocation
Prison Officers (uniform accrual)
Annex A
3.3
Notes on calculating awards
Early payment of a preserved award
Circumstances in which a preserved award may be paid before the
pension age
Actuarially reduced retirement
Early payment on ill health grounds: eligibility
Early payment on ill health grounds: award paid
Early payment on ill health grounds: action by departments
Early payment on compelling personal grounds: eligibility
Early payment on compelling personal grounds: award paid
Early payment on compelling personal grounds: action by
departments
Annex A
Annex B
3.4
Application for early payment on grounds of ill health
Factors
Dismissal
Grounds for dismissal
Benefits
Forfeiture of benefits
Dismissal on inefficiency grounds
Annex A
3.5
Forfeiture of PCSPS, CSCS and CSAVC Scheme
benefits
Reserved rights: staff in approved employment on 31 May 1972
Approved employment
Former civil servant joins the PCSPS
Former civil servant does not join the PCSPS
Early payment of a Civil Service award
3.6
Gratuities (Residual benefits under former arrangements)
Gratuities
benefits\3.m
(2)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.1
3.1 Resignation and opting
out
Preserved awards
3.1.1
A PCSPS award is made when a member:
•
leaves the PCSPS before the pension age by:
- resigning from the Civil Service; or
- opting out of the PCSPS; and
•
3.1.2
3.1.3
meets the qualifying conditions for an award (see below).
The award consists of:
•
an annual pension; and
•
a lump sum payment.
The award calculation is set out in 3.2.
The award is preserved in the PCSPS until the former member
reaches the pension age.
3.1.4
NOTE: Members may be eligible for a transfer value instead of a
preserved award. Those who take a transfer value are not entitled
to a preserved award. Members who are not eligible for a preserved
award may be eligible for a transfer value.
Employing departments have discretion to offer enhanced
preserved benefits (or enhanced transfer terms) in certain
circumstances.
3.1.5
benefits\3.1
(1)
Issue 5: April 2006
Resignation & dismissal: 3.1
Members’ Benefits
Information
Reference
Pensions Manual
Further
information
Information on transfers and the conditions
under which they are paid.
Transfers from the PCSPS
Added years granted on resignation (enhanced
early leaver benefits).
Service & Pay: 4.3
Refunds of family benefits contributions.
Family Benefits: section 5
Qualifying for a preserved award
Members must meet the conditions in table 1 to qualify for a
preserved award.
3.1.6
NOTE: Members who left the PCSPS before 6 April 1988 were
required to meet the qualifications in table 2.
Table 1: Qualifying for a preserved award
Qualifying service
Award
2 or more years.
A woman who is resigning in the tax year in which she reaches
age 60 (regardless of the length of her qualifying service).
Preserved pension and lump
sum.
A member who had rights under a personal pension scheme in
respect of which a transfer value was paid into the PCSPS
(regardless of the length of the member’s qualifying service).
If a member has a previous preserved award then any further
period of service will qualify regardless of length.
Less than 2 years.
No preserved award
(NOTE A).
(other than a woman who is resigning in the tax year in which
she reaches age 60; or a member with a previous preserved
award).
NOTE A: A refund of family benefits contributions is made when the member leaving the PCSPS
and is not taking a transfer value.
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(2)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.1
Table 2: Qualifying: member left the PCSPS before 6 April 1988
Qualifying service
Award
5 or more years.
A woman who resigned on or after 6 April 1978 in
the tax year in which she reached age 60
(regardless of the length of her qualifying service).
Preserved pension and lump sum.
At least 2, but less than 5 years
A short service payment of
(other than a woman who resigned on or after
6 April 1978 in the tax year in which she reached
age 60).
3/80 x pensionable earnings x reckonable
service.
(NOTE A)
Less than 2 years
No preserved award.
(other than a woman who resigned on or after
6 April 1978 in the tax year in which she reached
age 60).
(NOTE A)
NOTE A: A refund of family benefits contributions was made when the member was unmarried
on leaving the PCSPS and did not take a transfer value.
benefits\3.1
(3)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.2
3.2 Making the award
Calculating and authorising the award
An award is calculated and authorised by the awarding
authority when a member who qualifies for a preserved award leaves
the PCSPS.
3.2.1
NOTE: Qualifying for a preserved award, and action by employing
departments, are set out in 3.1.
A preserved award is calculated in the same way as an award
made when a member retires on age grounds. Only the payable date is
different.
3.2.2
NOTE: This includes fixed term appointments (other than
designated appointments).
The award is made as soon as possible after the last day of
service and must be made within 2 months of receiving notification of
the last day of service (unless a member asks for a transfer value
estimate beforehand).
3.2.3
The award
The award is calculated as set out in table 1. An example is
given in 2.2 (example 1).
3.2.4
The pension paid by the PCSPS must not be less than the
member’s Guaranteed Minimum Pension (1.2).
3.2.5
NOTE: Before commencing payment, the Paying Authority:
-
benefits\3.2
checks that the PCSPS meets this minimum level of payment;
and
tops up the PCSPS pension to the level of the GMP when the
PCSPS pension is lower.
(1)
Issue 5: April 2006
Resignation & dismissal: 3.2
Members’ Benefits
Table 1: Benefits payable to members who resign after 6 April 1988
Qualifying service
2 or more years.
(NOTE A)
Benefit
Pension: 1/80 of pensionable earnings x length of reckonable
service.
Lump sum: 3/80 of pensionable earnings x length of reckonable
service.
Both the pension and the lump sum (plus any accrued pensions
increase) are payable at the pension age. (NOTE B)
NOTE A: Also women with less than 2 years’ service who resign in the tax year in which they
reach age 60.
NOTE B: The application of pensions increase is set out in section 6.
The lump sum is reduced if there are outstanding family
benefits contributions when the member leaves the PCSPS.
3.2.6
3.2.7
Members with service before 1 April 1980 have their pensions
reduced in respect of NI modification and Accrued Graduated
Abatement. Details are set out in section 7.
3.2.8
Advice on calculating an award is given in Annex A.
NOTE: This covers:
-
pensionable earnings and reckonable service;
additions to actual reckonable service;
re-employment;
moving to a lower substantive grade;
designated appointments;
non-standard pay terms.
Employing departments may, in certain circumstances, offer a
member an enhanced award on resignation from the Civil Service
before the pension age.
3.2.9
Information
Reference
Pensions Manual
Further
information
benefits\3.2
Enhanced award: added years granted on
resignation.
Service & Pay: 4.3
Family benefit contributions. Settling the
contribution account on leaving the PCSPS.
Family Benefits: section 4
(2)
Issue 5: April 2006
Members’ Benefits
3.2.19
3.2.20
Resignation & dismissal: 3.2
The PCSPS provides for the immediate payment of the award:
•
on actuarially reduced retirement;
•
for ill health reasons; or
•
on compelling personal grounds.
Details are given in 3.4.
Members who leave the PCSPS before the pension age with
an entitlement to a preserved award are advised on leaving to claim the
award from the Paying Authority at the payable date.
3.2.21
Information
Reference
Further
information
Pensions Manual
Abatement of pension.
Service & Pay: section 9
Arrangements for refunding family benefits
contributions.
Family Benefits: section 5
Commuting the retirement lump sum
Former members claiming their preserved benefits at the
pension age are provided by the Paying Authority with a note
explaining commutation, the actuarial factors and a form to use if they
want to make an option (2.5).
3.2.10
On receipt of an option to commute, the Paying Authority
passes details to the awarding authority who calculates and authorises
the revised benefits for payment by the Paying Authority as a corrected
award.
3.2.11
Refunds of family benefit contributions
The awarding authority also pays refunds of contributions in
respect of service before 6 April 1978 (men), 6 April 1988 (women) to
members who are neither married nor in a civil partnership. The refund
must be made within a month of the date the member receives full
refund information.
3.2.12
NOTE: The awarding authority must also pay refunds of
contributions to members who are neither married nor in a civil
partnership, who are not entitled to preserved benefits (unless the
member indicates a wish to transfer pension rights).
benefits\3.2
(3)
Issue 5: April 2006
Resignation & dismissal: 3.2
Members’ Benefits
Information
Further
information
Reference
Pensions Manual
Refunds of contributions to members who are
neither married nor in a civil partnership.
Family Benefits: 5.2
Recovery of debts
A debt owed to the employing department may be recovered
from the award payable to the member.
3.2.13
Information
Reference
Further
information
Pensions Manual
Recovery of debts.
Members’ Benefits: 1.5
Allocation
3.2.14 A member may opt to allocate part of the PCSPS pension in
favour of a pension for a named beneficiary.
Information
Reference
Further
information
Pensions Manual
Advice on allocation arrangements.
Options & AVCs: section 4
Prison Officers (uniform accrual)
Members in the Prison Officer grades who were serving in
Prison Officer posts on 30 September 1987 have a reserved right to a
pension age of 55. They also have a reserved right to reckon service
after 20 years at double its length.
3.2.15
When a Prison Officer resigns or opts out of the PCSPS
before the pension age the preserved pension and lump sum are not
brought into payment until age 60. However, the actual reckonable
service as a Prison Officer used in calculating the preserved award, is
increased using a method known as uniform accrual.
3.2.16
benefits\3.2
(4)
Issue 5: April 2006
Members’ Benefits
3.2.17
Resignation & dismissal: 3.2
Under this method:
•
a proportion of the double reckoning which the member
would have earned by remaining in service until age 55 is
credited as reckonable service;
•
reckonable service which is not service as a Prison Officer
is taken into account at its normal length after the
calculation of uniform accrual has been made.
An example of the uniform accrual calculation is given at
example 1 below.
3.2.18
Example
1
Prison Officer resigns at age
Reckonable service
Further service to age 55 would have been
Total reckonable service would then have been
38 years
11 years
16 years
28 years
46 days.
216 days.
319 days.
170 days.
Member would have completed 20 years actual Prison
Officer service after 8 years 149 days of that further service.
The remaining 8 years 170 days would have reckoned at
double its length.
Total reckonable service would have been
36 years
340 days.
Uniform accrual is calculated using the formula
AxC
B
where
A = Actual reckonable service as a Prison Officer on the last day of service. This is
subject to a maximum of 30 years and excludes any double reckoning.
B = The reckonable service the member would have had at age 55 if Prison Officer
service had continued until that age. This is subject to a maximum of 30 years and
excludes any double reckoning.
C = The reckonable service the member would have had at age 55 if Prison Officer
service had continued until that age. This is subject to a maximum of 40 years and
includes any double reckoning.
The member’s preserved award is calculated using reckonable service of:
11.5918 x 36.9315 = 15.0392 years.
28.4658
Information
Reference
Further
information
Pensions Manual
Reserved rights for Prison Officers in post
on 30 September 1987.
benefits\3.2
(5)
Service & Pay: 2.3 Annex B
Service & Pay: 2.3 Annex C
Issue 5: April 2006
Resignation & dismissal: 3.2
Members’ Benefits
blank page
benefits\3.2
(6)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.2 Annex A
3.2 Annex A
Notes
on calculating awards
Table 1: Pensionable earnings and reckonable service
Notes
Reference
Pensionable earnings
Pensions Manual
Calculating pensionable earnings.
Service & Pay: section 5
The earnings cap.
Service & Pay: 5.1
Reckonable service
Calculating reckonable service.
Service & Pay: 2.3
Reckonable service may be increased by:
• buying added years;
• added years granted on recruitment;
• added years granted on resignation (enhanced early
leaver benefits); or
• transferred-in service.
Options & AVCs: section 2
Service & Pay: 4.2
Service & Pay: 4.3
Transfers to the PCSPS
Service (starting before - or post accepted - before 1 June
1972) in certain places overseas.
Service & Pay: 3.5
Reserved rights of Prison Officer grades in post on 30
September 1987.
Service & Pay: 2.3
Enhancement credited on moving to a lower substantive
grade.
Service & Pay: section 10
Members who opt out of the PCSPS may opt to transfer
accrued PCSPS benefits to another pension scheme or
arrangement (NOTE A).
Transfers from the PCSPS: 4.4
Annex D
NOTE A: Sometimes the transfer includes all reckonable service. In other cases, part of the
reckonable service is retained by the PCSPS.
When service is retained, a preserved award is calculated in respect of the remaining reckonable
service.
benefits\3.2a
(1)
Issue 5: April 2006
Resignation & dismissal: 3.2 Annex A
Members’ Benefits
Table 2: Awards in special circumstances
Notes
Reference
Pensions Manual
Members who move to a lower grade before the pension
age
• standard terms
• improved terms.
Service & Pay: 10.1
Service & Pay: 10.2
Members who are employed on designated appointments.
Members’ Benefits: 2.3
Members who leave during a period on non-standard pay
terms (or within the following year)
Service & Pay: 5.1 Annex C
The award is calculated in the same way as for members in
corresponding circumstances who retire at the pension age.
The award is preserved for payment at the pension age.
Re-employment
Members re-employed after leaving the PCSPS with a
preserved award or before qualifying for a pension.
Members who are re-employed within 6 months have their
service aggregated (if they are re-employed before the
pension age).
Service & Pay: 6.2
Members re-employed after leaving the PCSPS with a
preserved award
Member served previously on a designated appointment.
Service & Pay: 6.4
Member re-employed on a designated appointment.
Service & Pay: 6.4
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(2)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.3
3.3 Early payment of a
preserved award
Circumstances in which a preserved award may be
paid before the pension age
3.3.1
A preserved award may be paid early when a former member:
•
opts for an actuarially reduced award; or
•
is in ill health; or
•
proves there are compelling personal grounds for early
payment.
NOTE: A copy of the relevant part of this chapter must be provided
to any former member who enquires about the early payment of a
preserved award.
Actuarially reduced retirement
Former members who left the Civil Service before the pension
age can opt to receive a reduced pension and reduced lump sum.
3.3.2
The award is actuarially reduced before it is paid. The degree
of reduction depends on the member’s age.
3.3.3
NOTE: Members retiring with actuarially reduced benefits may opt
to surrender the actuarially reduced lump sum under the
arrangements for commuting the retirement lump sum (2.5).
Information
Further
information
Pensions Manual
Actuarially reduced retirement.
benefits\3.3
Reference
(1)
Early Retirement: section 2
Issue 5: April 2006
Resignation & dismissal: 3.3
Members’ Benefits
Early payment on ill health grounds: eligibility
3.3.4
A preserved award may be paid early:
•
when a former member falls ill after leaving the Civil
Service.
NOTE: This applies also to former members who contract an illness
before leaving the Civil Service and who can demonstrate a
deterioration in health since leaving;
•
when a former member who has opted out of the PCSPS is
to be retired on medical grounds.
3.3.5
The Scheme Medical Adviser must be satisfied that the illness
would have led to medical retirement if the former member had
remained in the Civil Service.
The cases listed below must be referred to the Cabinet Office
(Civil Service Pensions Division). Civil Service Pensions Division will
advise the employing department of the decision. The employing
department then advises the former member.
3.3.6
•
Where the former member had retired under the
compulsory or flexible early retirement arrangements and
repackaged or commuted all or part of an annual
compensation payment.
•
Where the former member had retired early with
Compulsory Early Severance reserved rights benefits.
•
Where the former member in either of the above
circumstances makes a fresh application having previously
made an unsuccessful application before 22 August 1996.
•
Where an application or renewed application is made by a
person already in receipt of a pension under the AER
category of early retirement.
NOTE: Annex C provides guidelines for determining the timing and
the amount of any early payment of pension and lump sum in the
circumstances set out above.
benefits\3.3
(2)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.3
Early payment on ill health grounds: award paid
With the exception of cases referred to Civil Service Pensions
Division (see above), both the preserved pension and the preserved
lump sum are paid early when an application for payment is successful.
3.3.7
NOTE: Payment of the annual compensation payment ceases and
is replaced by pension when a person who retired early with an
annual compensation payment makes a successful application.
NOTE: A member who retired early with a lump sum compensation
payment cannot receive early payment of a preserved pension until
the whole period represented by the lump sum compensation
payment has expired.
The preserved award is not given any ill health enhancement
of service.
3.3.9
Members who are medically retired can commute their
pension if, at the time of retirement, they have a life expectancy of less
than 12 months.
3.3.10
Former members whose preserved pension is to be paid early
on ill health grounds may similarly commute their pension if they meet
the conditions. The procedure and calculations are the same as those
which apply to staff on medical retirement. The member’s preserved
pension and preserved lump sum are treated in the same way as an ill
health pension and ill health lump sum.
3.3.11
Information
Further
information
Reference
Pensions Manual
Option to commute pension (serious ill health).
Early retirement: 7.5
Early payment on ill health grounds: action by
departments
Employing departments deal with requests for early payment
of preserved awards on grounds of ill health, exceptionally referring
appropriate cases to Civil Service Pensions Division as required (see
3.3.6).
3.3.12
benefits\3.3
(3)
Issue 5: April 2006
Resignation & dismissal: 3.3
Members’ Benefits
The employing department must send each case to the
Scheme Medical Adviser at the address shown below, enclosing the
information listed in table 1.
3.3.13
Capita Health Solutions
10 Queen Victoria Road
Coventry CV1 3PJ
NOTE: It is not necessary to refer the case again when a former
member who has opted out of the PCSPS is being retired on
medical grounds and a medical retirement certificate has been
issued.
Table 1: Information to be sent to Scheme Medical Adviser
•
A description of the duties on which the former member was employed when in the Civil
Service.
•
The former member’s sick record during service.
•
Medical evidence to show that health has deteriorated since retirement. Only required
when the illness was contracted before leaving the PCSPS.
•
Completed form Med 2/05, which is available from the CSP website.
•
The health declaration form and supporting documents.
•
The PCSPS medical entry certificate, for those joining the scheme on or after 1 April 1998.
Employing departments must accept or turn down the request
for early payment in the light of Scheme Medical Adviser advice and
inform the former member of the decision.
3.3.14
When early payment is agreed, the employing department
must give the former member:
3.3.15
•
the starting date from which payment of pension has been
authorised (table 2); and
•
an application form (GS 59(CS)) endorsed in the awarding
department’s reference box: ex-preserved pension.
When the former member returns the application form, the
employing department must give the Authorised Pensions
Administration Centre (APAC) (when the employing department is not
itself an APAC):
3.3.16
•
the completed application form (GS59(CS)) with a request
that the preserved award be put into payment (table 2);
•
the starting date from which payment is to be made; and
•
a copy of the Scheme Medical Adviser letter.
benefits\3.3
(4)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.3
The APAC informs the Paying Authority that early payment
on ill health grounds has been authorised following reference to
Scheme Medical Adviser.
3.3.17
NOTE: The APAC must:
-
enclose a copy of the Scheme Medical Adviser letter; and
give the starting date from which payment of pension has been
authorised (table 2)
instruct, where appropriate, the Paying Authority to cancel any
annual compensation payment and replace it by the early
payment of the preserved pension
Table 2: Starting date for payment of pension
Member
Starting date
Former member applying for early payment on
ill health grounds.
The day the request for early payment was
received by the employing department.
Former member who has opted out of the
PCSPS and who is being retired on medical
grounds.
The day following the last day of service.
Former member who:
The day following the end of the notional
period. (This is to avoid the member receiving
more favourable treatment than a member
retiring with the immediate payment of an
award.)
•
has retired early with a lump sum
compensation payment; and
•
who applies before the end of the notional
period represented by the compensation
payment.
3.3.18
Model letters which departments should use are provided on
PenServer.
Early payment on compelling personal grounds:
eligibility
3.3.19
3.3.20
A preserved award may be paid early when:
•
a member or former member is aged 50 or over; and
•
there are compelling personal grounds for payment of
pension.
The member or former member may apply for the award to be
paid:
•
benefits\3.3
at the time of resignation; or
(5)
Issue 5: April 2006
Resignation & dismissal: 3.3
•
3.3.21
Members’ Benefits
at any time after resigning (or opting out of the PCSPS).
All the conditions set out in table 3 must be met.
Table 3: Conditions for early payment of pension on compelling
personal grounds
All the following conditions must be met.
•
The member or former member must be facing such personal difficulties or problems as to
be prevented from following any form of paid employment, either full-time or part-time.
•
It must not be possible to make any reasonable alternative arrangements to overcome the
immediate circumstances giving rise to the request (for example, by employing a nurse or
daily help when a dependent relative needs full-time care and attention).
•
The financial position must be such that retirement would be impractical unless the pension
and lump sum were brought into payment immediately.
3.3.22
The criteria are applied rigorously.
Financial hardship by itself does not constitute grounds for
early payment of benefits.
3.3.23
The member or former member must apply to the employing
department (or former department) for early payment of the preserved
award giving full details of the circumstances in support of the request,
including the information in table 4.
3.3.24
Table 4: Information to be supplied by the member or former member
•
Full details of income for the member or former member and all household members. They
must include details of state benefits, including the outcome of any application for Income
Support and income derived from savings.
•
Evidence of expenditure on the main household items including:
- rent or mortgage repayments;
- council tax;
- all utility bills, including gas, electric, water bills etc
- telephone line rental;
- insurances;
- food and clothing (there are set rates per person of household);
- other main household expenditure which can be shown as essential in the
circumstances.
Details of income and expenditure should be supported by bank statements, bills etc
•
Medical evidence (when appropriate). This is always required when a close member of the
family needs full-time care, although if Attendance Allowance is in payment the medical
criteria may in general be said to be satisfied. The former member is responsible for
providing the evidence.
benefits\3.3
(6)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.3
Early payment on compelling personal grounds:
award paid
Depending on the circumstances, the Cabinet Office may
decide to pay early either the pension or the lump sum, or both
benefits.
3.3.25
NOTE: The member may opt to surrender the lump sum under the
arrangements for commuting the retirement lump sum when both
the pension and the lump sum are brought into payment. (2.5)
Early payment on compelling personal grounds:
action by APACs
The Cabinet Office must be satisfied that the conditions in
table 3 have been met.
3.3.26
3.3.27
The APAC must:
•
ensure that all the necessary evidence has been obtained;
and
•
forward the case to the Cabinet Office.
NOTE: the APAC must deal with requests for early payment
immediately.
The Cabinet Office advises the employing department of its
decision. The employing department then advises the member.
3.3.28
3.3.29
When early payment has been agreed, the APAC must:
•
give the member or former member:
- the starting date from which payment of pension has
been authorised (table 5);
- an application form; and
- details of the arrangements for commuting the
retirement lump sum; and
•
give the Paying Authority:
- notification that early payment on compelling personal
grounds has been authorised; and
- the starting date from which payment of pension has
been authorised (table 5).
benefits\3.3
(7)
Issue 5: April 2006
Resignation & dismissal: 3.3
Members’ Benefits
Table 5: Starting date for payment of pension
Member
Starting date
Former member who has retired.
The day the request for early payment was
received by the employing department.
Member or former member who is retiring.
The day following the last day of service.
Former member who:
The day following the end of the notional
period. (This is to avoid the member receiving
more favourable treatment than a member
retiring with the immediate payment of an
award.)
• has retired early with a lump sum
compensation payment; and
• who applies before the end of the notional
period represented by the compensation
payment.
benefits\3.3
(8)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.3 Annex A
3.3 Annex A Application for
early payment
on grounds of ill health
Cases reserved for Civil Service Pensions Division
Chapter 3.3 details those applications which employing
departments must refer to Civil Service Pensions Division. This Annex
sets out how such cases will be treated subject to the medical
assessment criterion being met. The guidelines apply to all relevant
applications received on or after 22 August 1996. They also apply to
any request for consideration of early payment in respect of persons
who had previously applied for early payment before that date and
whose application had been refused.
1
Application made after departure on CER or FER
terms and all or part of the annual compensation
payment was repackaged or commuted
Commutation
Payment of the annual compensation remaining after
commutation ceases from the day the request for early payment was
received by the employing department and is replaced by a
corresponding amount of pension. This amount of pension will
continue in payment until the pension age and will attract future
pensions increase from the date it replaces the annual compensation
payment, after uprating in respect of pensions increase for the period
following the early departure. At the pension age, the full amount of
the preserved pension will be brought into payment.
2
benefits\3.3a
(1)
Issue 5: April 2006
Resignation & dismissal: 3.3 Annex A
Members’ Benefits
Repackaging
A former member who repackaged all or part of an annual
compensation payment will be treated under the above commutation
arrangements, except where all or part of the annual compensation
payment payable until age 55 was repackaged. In such cases, the
amount of annual compensation payment remaining after repackaging
will cease from the day the request for early payment was received by
the employing department and be replaced by a corresponding amount
of pension. This amount of pension will be payable until age 55, when
it will be increased to the level of the annual compensation payment
originally awarded (ie before repackaging). As with commutation, the
pension will attract future pensions increase from the date it replaces
the annual compensation payment, after uprating in respect of pensions
increase for the period following the early departure. At the pension
age, any additional pension obtained by repackaging will be brought
into payment.
3
NOTE It follows from the above paragraphs that there is no benefit
in these arrangements for those aged 55 or over (because pensions
increase is already payable on the annual compensation payment).
Applications made after early retirement with
Compulsory Early Severance Reserved Rights
benefits
In these cases, the member has already received a CES lump sum
payment plus a top-up amount which together provide for a lump sum
payment equivalent to the benefits provided under the former early
retirement provisions, including payment of an annual compensation
payment to age 60. Where the medical assessment criteria for early
payment is met, the preserved benefits will be brought into payment
after account is taken of:
4
•
the notional period represented by the CES lump sum payment
(this is a maximum of three years and is calculated by dividing the
CES lump sum compensation payment by pensionable earnings);
and
•
the annual value of the additional top-up amount after adjustment,
which shall be deducted from the gross pension before it is brought
into payment. The deduction will increase in line with annual
pension increases from redundancy until the individual’s pension
age. At the individual’s pension age, the deduction will cease.
benefits\3.3a
(2)
Issue 5: April 2006
Members’ Benefits
Example
Resignation & dismissal: 3.3 Annex A
Individual left on redundancy on 8 March 1996, with CES reserved rights
benefits.
Date of birth: 7 March 1953 (age at redundancy 43 years 0 months).
Normal pension age: 60.
Application for early payment under PCSPS rule 3.14 successful.
Period represented by the CES lump sum compensation period already
expired.
Preserved benefits can be brought into early payment immediately but only after the preserved
pension has been reduced by the annual value of the reserved rights top-up payment. In
determining the annual value of the reduction, the top-up payment is reduced by the value of the
enhancement to the individual’s pension from age 60 and the value of the net enhancement to
the retirement lump sum and after application of factors provided by the Scheme Actuary.
Details from the original CES reserved rights calculation
CES award (non-reserved terms)
Top-up payment
Total CES award
£52,755.36
£22.691.60 (A)
£75,446.96
Capital value of pension enhancement from age 60
£6,462.53 (B)
Net enhancement to the lump sum (ie net of WPS deduction)
£1,318.88 (C)
Period from day following redundancy until day prior to age 60 is 16
years 363 days = 16.9945 (P)
The amount to be deducted from the pension is determined using the
following formula:
A – (B + C)
PxF
where:
A = The additional compensation payment, or ‘top-up’ element, of the
reserved rights CES lump sum paid on redundancy.
B = The capital value of the pension enhancement from age 60 which
formed part of the original CES reserved rights calculation.
C = The net enhancement to the lump sum (or net deduction from the
gross lump sum) used in the reserved rights calculation.
benefits\3.3a
(3)
Issue 5: April 2006
Resignation & dismissal: 3.3 Annex A
Members’ Benefits
P = The period from the day following redundancy until the day prior
to age 60 (or earlier normal pension age for preserved benefits). The
period is expressed in years and days in decimal form.
F = The factor based on age at redundancy from the table at Annex D
Thus, in this particular example:
£22,691.60 – (£6,462.53 - £1,318.88)
(factor for someone aged 43 years 0 months)
16.9945 x 0.78
= £14,910.19 = £1,124.81 pa
13.2557
(before the application of pensions increase)
The deduction would increase in line with annual pensions increases
from redundancy until age 60. At age 60, the deduction would cease.
Application after departure on AER terms
5
Where an application is received from a former member who is
in receipt of an AER pension and is over age 55 at the time of
application, no referral will be made to scheme medical adviser as the
pension already attracts pensions increase. Where the former member
is under age 55, and the medical assessment criterion is met, the AER
pension will be cancelled and replaced by early payment of the
preserved pension on grounds of ill health, attracting pensions increase
from the date the application was received by the employing
department, after uprating in respect of pensions increase for the period
following the early departure.
benefits\3.3a
(4)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.3 Annex B
3.3 Annex B
Factors
Table 1 sets out the factors provided by the Scheme Actuary to
be used when calculating the pension deduction of those who left on
CES reserved rights terms and are subsequently successful in applying
for early payment of preserved benefits on grounds of ill health under
PCSPS rule 3.14.
1
Table 1 Factors for calculating the pension deduction for CES
reserved rights cases
Age at Redundancy
Factors
Years and complete months
Years – months
40 40 41 41 42 -
0
6
0
6
0
to
to
to
to
to
40 40 41 41 42 -
5
11
5
11
5
0.76
0.76
0.77
0.77
0.78
42 43 43 44 44 -
6
0
6
0
6
to
to
to
to
to
42 43 43 44 44 -
11
5
11
5
11
0.78
0.79
0.79
0.80
0.80
45 45 46 46 47 -
0
6
0
6
0
to
to
to
to
to
45 45 46 46 47 -
5
11
5
11
5
0.81
0.81
0.82
0.83
0.83
47 48 48 49 49 -
6
0
6
0
6
to
to
to
to
to
47 48 48 49 49 -
11
5
11
5
11
0.84
0.84
0.85
0.85
0.86
benefits\3.3b
(1)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.4
3.4 Dismissal
Grounds for dismissal
3.4.1
The grounds for dismissal are:
•
inefficiency;
•
misconduct or for disciplinary reasons;
•
failure of probation.
The employing department must state the reason for dismissal
when applying for an award.
3.4.2
Information
Reference
Civil Service Management
Code
Further
information
Dismissal for inefficiency, notice and appeals.
Chapters 11 and 12
Benefits
Members who are dismissed are entitled to the same pension
benefits as if they had resigned voluntarily, provided they meet the
eligibility requirements set out in 3.1.
3.4.3
Alternatively, the member may opt to transfer any accrued
PCSPS benefits to another pension scheme or arrangements (regardless
of the amount of qualifying service).
3.4.4
Information
Further
information
Pensions Manual
Transferring pension rights out of the PCSPS.
benefits\3.4
Reference
(1)
Transfers from the PCSPS.
PC268: September 2006
Resignation & dismissal: 3.4
Members’ Benefits
Forfeiture of benefits
The Minister for the Cabinet Office has the power to withhold
the whole or part of any benefits (including CSCS and CSAVC
Scheme benefits) payable when a member (or former member) is
convicted of certain offences. Details are set out in Annex A.
3.4.5
Dismissal on inefficiency grounds
A person dismissed on grounds of inefficiency may receive a
lump sum compensation payment (payable immediately) if:
3.4.6
•
the employing department decides it is appropriate; and
•
the person has at least one year’s qualifying service.
NOTE Staff who left the Civil Service on grounds of inefficiency
before 1 August 1988 were treated under the early retirement
provisions. A person dismissed for inefficiency on or after 1 August
1988 with at least one year’s service but who had been served with
formal notice of inefficiency before that date was also treated under
the early retirement provisions.
3.4.7
The compensation payment may be paid in respect of:
•
members; and
•
staff who have opted out of the PCSPS.
The maximum amount of compensation which may be paid is
set out in table 1. Employing departments may award compensation in
percentage amounts up to the maximum payable in each case.
3.4.8
NOTE For dismissals for inefficiency which occurred on or after
1 August 1988 and on or before 31 March 1998, only the maximum
amount of compensation could be awarded.
Information
Information Notes for
Personnel Managers
Further
information
Code of practice for dealing with inefficient staff.
benefits\3.4
Reference
(2)
PIN 40
PC268: September 2006
Members’ Benefits
Resignation & dismissal: 3.4
Table 1 Lump sum compensation payable on dismissal for inefficiency
At least one year’s qualifying service (NOTES A, B and C)
2 weeks’ pensionable earnings for each year of reckonable service during the first 5 years of
qualifying service. Notes D, E, F, G and H.
PLUS
3 weeks’ pensionable earnings for each year of reckonable service during the next 5 years of
qualifying service. Notes D, E, F, G and H.
PLUS
4 weeks’ pensionable earnings for each year of reckonable service after the first 10 years of
qualifying service. Notes D, E, F, G and H.
PLUS
th
2 weeks’ pensionable earnings for each year of reckonable service after the 40 birthday. Notes
E, G and H.
Maximum compensation of 2 years’ pensionable earnings. Where there is part-time service
in the last 3 years of reckonable service, pensionable earnings for the purposes of this limit is
calculated by reference to actual pay and pensionable emoluments in whichever of the last 3
years of reckonable service gives the highest figure, rather than the full-time rate of pensionable
earnings. Note J
NOTE A The total compensation payment is tapered when the person is within 3 years of the
pension age () see Further Information box below). The compensation payment is not tapered
for Prison Officers with a pension age of 55 as their preserved benefits will not come into
payment until age 60.
NOTE B One week’s pensionable earnings is the weekly equivalent of the annual rate of
pensionable earnings used in calculating the preserved award. It is calculated by dividing
pensionable earnings by 52.2.
NOTE C For this calculation, reckonable service:
• includes any opted-out service;
• means reckonable service before and after a move to a lower substantive grade. (It
excludes any enhancement of service given if the move was made under the improved
terms.)
NOTE D For this calculation, qualifying service does not include periods of unpaid sick absence,
unpaid leave and leave at pension rate.
NOTE E In the case of members, or former members, who join or re-join an employment
covered by the PCSPS on or after 1 April 1997, compensation is calculated by reference to
current reckonable service only. Earlier service, transferred-in service and added years
purchased are not taken into account (but there are exceptions - see the further information box
below).
NOTE F For departures before 1 April 1998, this calculation was based entirely on reckonable
service.
NOTE G Where past reckonable service was reduced following pay restructuring, that service
and any further reckonable service after the reduction will be treated as continuous and ending
on the last day of service.
NOTE H The calculation of pensionable earnings is not subject to the earnings cap (see further
information box).
NOTE J On or after 1.4.1998 where a member has part- time service in the last 3 years of
reckonable service the pensionable earnings used to calculate the restricted Lump Sum
Compensation Payment (2 x PP) should be greater of either:
•
best year of actual earnings in the last 3 years
•
or
•
pensionable earnings based on equivalent full time earnings multiplied by the fraction
of A/B
Where A = actual reckonable service, and
B = What the reckonable service would have been if the officer had worked full-time.
benefits\3.4
(3)
PC268: September 2006
Resignation & dismissal: 3.4
Members’ Benefits
A member aged 55 or over on the last day of service, who is
3.4.9
eligible for a preserved award and who is awarded the maximum
amount of compensation payable, may opt to forgo that compensation
and receive, instead, immediate payment of pension and lump sum.
The lump sum may be surrendered under the commutation
arrangement (2.5).
NOTE These options are not available to former members who
have opted out of the PCSPS.
The employing department must inform the awarding
authority:
3.4.10
3.4.11
•
when compensation is to be paid and the amount awarded
(as a percentage of the maximum payable); or
•
when the person has opted to forgo the maximum
compensation awarded and to receive, instead, immediate
payment of the pension and lump sum.
The employing department pays the cost of:
•
the lump sum compensation payment; or
•
the pension, (and any pensions increase on it) paid before
the person’s pension age; and
•
the cost of bringing forward payment of the accrued
retirement lump sum. For details of how this is calculated,
see Further information box below.
NOTE The retirement lump sum is always charged to the Civil
Superannuation Vote. The pension paid by the employing
department does not include any increase resulting from commuting
the lump sum.
The awarding department must show on the superannuation
award documentation any elements of the award falling on
departmental votes.
3.4.12
3.4.13
The Paying Authority:
•
pays the full cost of the award from the Civil
Superannuation Vote. This includes any pension
payments, lump sum and compensation payments; and
•
recovers any additional costs from the employing
department on a monthly basis.
benefits\3.4
(4)
PC268: September 2006
Members’ Benefits
Resignation & dismissal: 3.4
Information
Reference
Pensions Manual
Further
information
Calculation of compensation.
(New entrants who join, or rejoin an
employment covered by the PCSPS on or
after 1 April 1997)
Early Retirement: 4.1 Annex C
Tapering the compensation payment.
Early Retirement: 4.2 Annex B
Early payment of accrued retirement lump
sum.
Early Retirement: 1.4
Reduction of past reckonable service following
pay restructuring.
Service & Pay: 2.2
The Earnings Cap (limit on pensionable
earnings).
benefits\3.4
(5)
Service & Pay: 5.1
PC268: September 2006
Members’ Benefits
Resignation & dismissal: 3.4 Annex A
3.4 Annex A
Forfeiture
of PCSPS, CSCS and
CSAVC Scheme
benefits
Forfeiting benefits
The Minister for the Cabinet Office has the power to withhold
any PCSPS, CSCS or CSAVC Scheme benefits payable, either
completely or in part, when a member (or former member) is
convicted:
1
•
of one or more offences under the Official Secrets Acts
1911 to 1989 for which the member has been sentenced:
- to a term of imprisonment of at least 10 years; or
- on the same occasion, to 2 or more consecutive terms of
imprisonment amounting in total to at least 10 years; or
•
of an offence in connection with any employment covered
by the PCSPS and for which a Minister of the Crown
certifies the offence:
- to have been gravely injurious to the State; or
- to be liable to lead to serious loss of confidence in the
public service.
NOTE When a member, or former member is convicted of treason,
benefits are automatically forfeit under section 2 of the Forfeiture
Act 1870.
NOTE Any guaranteed minimum pension (GMP) payable under the
provisions of the Social Security Pension Act 1975 cannot be
forfeited in the case of ‘certified’ offences. This does not apply to
offences under the Official Secrets Acts or treason.
Employing departments must refer all cases in which
forfeiture is a possibility to:
2
•
the Cabinet Office (Employment Policy and Practice
Division); and
•
the Cabinet Office (Civil Service Pensions Division).
benefits\3.4a
(1)
Issue 5: April 2006
Resignation & dismissal: 3.4 Annex A
Members’ Benefits
NOTE Employment Policy and Practice Division advises Ministers,
where necessary, on the certification of offences. Civil Service
Pensions Division makes a recommendation on forfeiture if this is
appropriate. Both Divisions must be consulted at an early stage in
any case in which criminal proceedings are pending and the
charges are such that forfeiture of benefits may need to be
considered.
The Cabinet Office (Civil Service Pensions Division)
discusses all cases with the Council of Civil Service Unions (CCSU)
on a ‘without prejudice’ basis before making a decision to withhold
benefits.
3
Appeals
Members and former members have a right of appeal to the
Civil Service Appeal Board before pension benefits may be forfeited
for reasons other than treason.
4
The Minister for the Cabinet Office will accept the decision of
the board on whether or not the pension benefits are to be forfeited.
5
Information
Further
information
Reference
Civil Service Management
Code: Personnel Management
Forfeiture of superannuation benefits.
4.5 Annex A
Appeals.
12.1
Pensions Manual
Forfeiture of CSAVC Scheme benefits.
benefits\3.4a
(2)
Options & AVCs: section 3.1
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.5
3.5 Reserved rights:
staff in approved employment on 31 May
1972
Approved employment
Before the introduction of the PCSPS on 1 June 1972, staff
who left the Civil Service before the pension age usually lost any
accrued pension benefits unless they could transfer them to other
public sector employment.
3.5.1
Approved employment was an arrangement allowing the
accrued pension benefits to be preserved in the Civil Service pension
scheme when a civil servant entered an employment approved for the
purpose and provided that the employment met certain conditions and
the civil servant’s department gave its consent (Superannuation Act
1965, S40).
3.5.2
NOTE The conditions included a requirement that the employment
was not of a purely private or commercial nature. The employment
had to be in a public service field in the UK, Commonwealth
countries or with an international organisation.
The benefits were calculated according to the Civil Service
pension arrangements in force when the person left the Civil Service.
3.5.3
Payment of the preserved benefits was made when the former
civil servant:
3.5.4
•
retired on age grounds from the approved employment; or
•
was medically retired from the approved employment
(with the immediate payment of a pension under the
approved employment’s pension scheme).
benefits\3.5
(1)
Issue 5: April 2006
Resignation & dismissal: 3.5
Members’ Benefits
The approved employment arrangements generally became
obsolete when the PCSPS was introduced.
3.5.5
NOTE Approved employment terms could be granted to civil
servants who left after 1 June 1972 (without an entitlement to
preservable benefits in the PCSPS) to join the Armed Forces. The
Armed Forces Pension Scheme (AFPS) and arrangements for
transferring pension benefits to or from it were introduced with an
effective date of 1 April 1975.
Former civil servants who were in approved employment on
31 May 1972 have reserved rights to benefits under the approved
employment arrangements.
3.5.6
3.5.7
The reserved rights apply:
•
whether or not the former civil servant continued in the
approved employment after 31 May 1972; and
•
irrespective of the nature of any further employment after
31 May 1972.
The way the benefits are calculated depends on whether or not
the former member joins the PCSPS after leaving the approved
employment.
3.5.8
Former civil servant joins the PCSPS
The PCSPS award action set out in table 1 applies to former
civil servants who:
3.5.9
•
left the Civil Service on approved employment terms
before 1 June 1972; and
•
join the PCSPS on or after being re-employed in the Civil
Service (or in a Schedule 1 body).
Information
Reference
Pensions Manual
Further
information
Option on aggregated or separate awards.
Service & Pay: 8.3
Benefits on re-employment after the pension
age.
Service & Pay: section 7
Administration & Finance
Schedule 1 bodies.
benefits\3.5
(2)
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.5
Table 1 Benefits to former civil servants who have been re-employed
and have joined the PCSPS
Age on joining
the PCSPS
Under 50.
Action
The earlier period of reckonable service in the Civil Service is aggregated
with the later PCSPS service.
A single award is calculated when the member subsequently leaves the
PCSPS.
Age 50 and over
but before the
PCSPS pension
age.
A preserved award in respect of the earlier reckonable service in the Civil
Service is calculated on:
•
the average pensionable earnings over the last 3 years of the
earlier reckonable service in the Civil Service; and
•
complete years of the earlier reckonable service.
The re-employed PCSPS service reckons for a PCSPS award in the
normal way.
The member must opt for a single aggregated award or 2 separate awards
on reaching the pension age (or when leaving the PCSPS if this is earlier).
At or after the
PCSPS pension
age.
The award in respect of the earlier reckonable service in the Civil Service
will have been put into payment. The member is treated as a re-employed
pensioner and the award is revised on final retirement provided that the
member is re-employed for at least 182 days. (NOTE A)
NOTE A The period of 182 days does not apply for widows’, widowers’ and civil partner’s
pension purposes.
Former civil servant does not join the PCSPS
3.5.10
The benefits set out in table 2 apply to former civil servants
who:
3.5.11
•
were in approved employment on 31 May 1972; and
•
have not rejoined the PCSPS.
The benefits apply to:
•
benefits\3.5
former civil servants who have not been re-employed in
the Civil Service (or in a Schedule 1 body); and
(3)
Issue 5: April 2006
Resignation & dismissal: 3.5
•
Members’ Benefits
former civil servants who have been re-employed in the
Civil Service (or in a Schedule 1 body) but did not join the
PCSPS, either at the time of taking up employment or
later.
NOTE Members who opt out of the PCSPS within 3 months of
joining or rejoining the PCSPS have their option backdated to the
date of joining or rejoining. Their PCSPS membership since that
date is cancelled. They are treated for the purposes of these
arrangements as if they had not joined the PCSPS on employment
or re-employment.
Table 2 Benefits to former civil servants who have not joined the
PCSPS (NOTE A)
Qualifying service
(NOTE B)
10 years or more
Benefits payable
Preserved pension and
lump sum payable at the
pension age.
See example 1.
An additional allowance
of:
At least 2 but less
than 10 years.
3/80 x pensionable
earnings
x
reckonable service;
Calculation
For former civil servants whose last day
in the Civil Service was before
29 February 1972, the award is
calculated on:
•
completed years of reckonable
service; and
•
average annual salary and
pensionable emoluments in the
last 3 years of reckonable
service in the Civil Service.
plus
(NOTE C)
a gratuity as set out
below.
See example 2.
A gratuity of:
At least 1 but less
than 10 years.
Gratuity calculated on:
1/12 x pensionable
earnings
x
reckonable service.
•
completed half-years (183 days)
of reckonable service; and
•
average salary and emoluments
(as above).
See example 2.
NOTE A The award is payable when the person reaches the Civil Service pension age, unless
immediate payment of actuarially reduced benefits is granted (see below).
NOTE B Qualifying service on leaving the Civil Service and taking up approved employment.
NOTE C On or after 29 February 1972 and before 1 June 1972: award calculation on
reckonable service expressed in years and days; and
pensionable earnings, based on the last 3 years of reckonable service in the Civil
Service.
The benefits are calculated and authorised by the awarding
authority.
3.5.12
benefits\3.5
(4)
Issue 5: April 2006
Members’ Benefits
Example
1
Qualifying
service 10 years
or more.
Resignation & dismissal: 3.5
Last day of service in the Civil Service
Reckonable service
19 October 1969
12 years, 57 days
Average annual salary and pensionable
emoluments in last 3 years’ reckonable service
£2,713.38
Reckonable service (completed years)
12 years
Gross annual pension
1 x 12 x £2,713.38 = £407.01 pa
80
Gross lump sum
3 x 12 x £2,713.38 = £1,221.02
80
Example
2
Qualifying
service at least
2 but less than
10 years.
Last day of service in the Civil Service
Reckonable service
23 April 1971
8 years, 200 days
Average annual salary and pensionable
emoluments in last 3 years’ reckonable service
£2,319.71
Reckonable service:
(completed years
(completed half-years (183 days))
8 years)
8½ years)
Additional allowance
3 x 8 x £2,319.71
80
=
£ 695.91
Gratuity
1 x 8½ x £2,319.71 =
12
Total due
£1,643.13
£2,339.04
The award, together with accrued pensions increase (from the
day following the last day of service to the eve of the payment date), is
paid by the Paying Authority when the person reaches the PCSPS
pension age or is medically retired from the approved employment.
The former civil servant may apply for early payment (see below).
3.5.13
benefits\3.5
(5)
Issue 5: April 2006
Resignation & dismissal: 3.5
Members’ Benefits
Early payment of a Civil Service award
A former civil servant who has a reserved right to a preserved
Civil Service award as a result of approved employment may apply for
early payment of Civil Service benefits in certain circumstances.
3.5.14
3.5.15
To be eligible, the former civil servant must:
•
have qualified for a pension from the approved
employment; and
•
be retiring from the approved employment on age grounds
(before the PCSPS pension age).
NOTE This is a reserved right operating under the approved
employment arrangements only. It does not apply when the former
civil servant retires from or leaves the approved employment for
reasons other than retirement on age grounds.
The former civil servant must apply for the early payment of
Civil Service benefits within 6 months of retiring from the approved
employment.
3.5.16
The Civil Service award (calculated in accordance with
table 2 above) is actuarially reduced when it is paid before the PCSPS
pension age under these arrangements.
3.5.17
The calculation of actuarially reduced benefits is made in the
same way as benefits paid under the actuarially reduced retirement
category of early retirement.
3.5.18
Information
Further
information
benefits\3.5
Reference
Pensions Manual
Advice about the calculation of actuarially reduced
benefits, including formulae and factors.
(6)
Early retirement: 2.3
Issue 5: April 2006
Members’ Benefits
Resignation & dismissal: 3.6
3.6 Gratuities
(Residual benefits under former
arrangements)
The gratuities referred to in this chapter are no longer available.
Gratuities
The following gratuities were paid under the Civil Service
pension arrangements which existed before the introduction of the
PCSPS (1 June 1972):
3.6.1
•
marriage gratuities (women only);
•
unestablished gratuities;
•
part-time gratuities;
•
mixed service gratuities.
When the PCSPS was introduced, members who had an
expectation of receiving one or more of these gratuities had a reserved
right to opt to receive a gratuity in respect of their service before
1 June 1972.
3.6.2
3.6.3
3.6.4
The member had to:
•
satisfy the qualifying conditions for the payment of the
gratuity;
•
have been in service on 31 May 1972; and
•
retire or resign before 1 June 1982.
The reserved right no longer exists.
A gratuity paid under these reserved rights provisions cannot
be refunded if the person is re-employed and again becomes
pensionable under the PCSPS.
3.6.5
benefits\3.6
(1)
Issue 5: April 2006
Resignation & dismissal: 3.6
Members’ Benefits
NOTE Different provisions apply to members who received
gratuities under the former pension arrangements and who were
later re-employed in the Civil Service.
Information
Further
information
benefits\3.6
Reference
Pensions Manual
Members who could opt to have earlier service
aggregated.
(2)
Service & Pay: Section 8
Issue 5: April 2006