Cardiff University
Voluntary Severance Scheme 2013
1
Introduction
1.1
The University’s ambitions and the performance levels necessary to achieve it are set out in
The Way Forward. Highly skilled and highly performing staff are fundamental to delivering
the improvement in University performance and to its long term sustainability in the new
operating environment for Higher Education. For our collective success, we need to ensure
that we have and can retain a staff profile that can deliver excellence in research, in
education and student experience and support our international and engagement agenda.
Professional support across the University also needs to be focussed on services which
enable the University to deliver its aims. The changes in overall performance expectations
and in the way we will work are significant and may potentially be at a level which some
members of staff are not comfortable with. Individuals may also have personal reasons for
considering a change of direction or of career. The University recognises that and is
providing a one-off opportunity to apply for severance under a Voluntary Severance Scheme.
1.2
The Scheme is designed to provide staff with an opportunity to take a personal decision
regarding their future employment. It enables staff who may wish to leave their employment
to do so with an appropriate compensatory payment. Support is also available to assist staff
in seeking alternative employment or retraining.
1.3
The Scheme complies with current employment law. It has due regard to the appropriate use
of public funds and the need to demonstrate either a financial saving to the University or to
create opportunity to reinvest in staff in the forthcoming years. The Scheme is




a non contractual scheme
offered for the specified time only
in respect of the current circumstances
is entirely voluntary.
1.4
The Scheme has a fixed budget within which severance costs will be contained. The
University is under no obligation to approve any application. Only applications with the
support of the relevant PVC Head of College/Chief Operating Officer will be considered. If the
scheme is oversubscribed, a further selection process will take place. The selection process
will consider how to maximise the benefit to the University overall
1.5
The scheme will run across the whole University. References to Schools include
Professional Services Departments; to Heads of School include Heads of Professional
Services Departments; and to PVC Heads of College include the Chief Operating Officer.
2
2.1
Eligibility
The Scheme is open to all members of staff who:
2.1.1
2.1.2
2.1.3
2.1.4
Have a minimum of 2 years continuous service at the scheme deadline (30 April
2013) and an expectation of ongoing employment for at least two further years;
Are employees of the University;
Have not resigned or are not in the process of being appointed to another post within
or external to the University; and who
Have not formally expressed their intention to retire in the next 12 months;
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2.2
3
Members of staff whose posts are potentially affected by proposals for reorganisation of
Schools/Departments on which consultation has commenced are also eligible under the
terms of this scheme during its lifetime (18 February 2013 – 30 April 2013). On 1 May 2013,
the terms offered in such circumstances will revert to the normal level.
Assessment criteria
3.1
Applications for voluntary severance will only be considered if they are in the management
interest of the University and are supported by the relevant area(s) of the University.
3.2
Cases will need to demonstrate a sound business case for the School, College and
University and will normally satisfy one or more of the following criteria:
A. The post will not automatically be replaced;
B. Replacement of the post is necessary but this will be achieved in a cost effective way e.g.
activity is reorganised and can realistically be sustained, another post is not replaced or
appointments are made at lower levels;
C. There is no detrimental impact on the work area by the loss of essential skills or
experience;
D. The application facilitates efficiency and/or performance improvements or restructuring of
a work area, including reinvestment in staff with particular skills and track record.
3.3
4
No member of staff whose application for Voluntary Severance is successful will be eligible to
be re-engaged in a remunerated position within the University, whether full time, part-time or
on a consultancy or casual basis, in the two years following their agreed leaving date.
Timescales
Scheme opens and expressions of interest accepted
Deadline for submission of Stage 2 application
18 February 2013
30 April 2013
February – June 2013
Consideration of applications
Confirmation of overall outcome
End June 2013
The timetable for the Scheme allows staff time to consider and for the University to
determine the level of interest in the Scheme. Applications will be considered at regular
intervals while the scheme is live. If the funds allocated to the scheme are exhausted before
the closing date, the scheme will close early.
5
Compensation Payment
5.1
The compensation paid on voluntary severance under the terms of this scheme is 12
months’ gross salary. Gross salary is defined as the salary before deduction of
employee’s national insurance contributions and tax.
5.2
This is the limit to be paid under this scheme, whether directly to an individual or to a
pension scheme. The payment will be in full and final settlement i.e there will be no separate
payments for notice, untaken annual leave or any other payments. No application exceeding
this level of compensation will be considered.
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5.3
The payment for part time staff will be calculated pro-rata, based on their actual salary not
that of a full time employee. The payment for staff on framework or variable contracts will be
based on their earnings over the previous 12 months or the average of their earnings over
the previous 24 months, whichever is the greater.
5.4
Non-contractual severance payments up to £30,000 may be paid without deductions for tax
or national insurance. This is determined by HM Revenue and Customs. Should any
element represent pay in lieu of notice, it will be identified and taxed where appropriate.
5.5
This is a voluntary decision by the staff member to leave employment at the University and is
not a redundancy scheme. Statutory Redundancy Pay does not apply and will not be
payable. The employment will end by mutual consent.
5.6
All members of staff accepting an offer of voluntary severance will be required to sign a
Compromise Agreement before receiving payment.
5.7
The University will pay up to £350 plus VAT to an independent solicitor who will provide
independent advice to the member of staff on the Compromise Agreement.
6
Pensions
6.1
This is not a voluntary early retirement scheme. Any decision by a member of staff over the
age of 55 whether or not to access their pension early when they voluntarily leave the
University’s employment is a personal one.
6.2
The University has four separate pension schemes. The age at which an individual can
access an unreduced pension is dependent on individual pension scheme rules and on the
individual’s continuity of membership. Further guidance on this is available on the University
Pensions web page. Benefit modellers are also provided on some scheme’s websites to
assist scheme members.
6.3
Individuals should make enquiries regarding their personal entitlements directly to the
relevant pension scheme and satisfy themselves regarding any pension options they wish to
explore before approaching their Head of School. (When making enquiries, staff should
make it clear that they are considering voluntary severance and that this is not a redundancy
scheme.) Staff in the relevant age group may wish to consider whether they are entitled to
payment of the full pension in 2013.
6.4
Each scheme has an expected retirement age. The final pension is based on members
working to that age and paying all their contributions. If the pension starts being paid earlier
than expected, then the amount of the pension paid out is reduced because you will be
receiving it over a longer period.
6.5
In those circumstances, the member of staff has a personal choice:
6.6
●
To accept the reduced pension or
●
To buy out the reduction in pension by asking the University to pay the severance
lump sum payment into the pension scheme and paying any remaining difference
yourself. The University will not pay more than the standard voluntary severance
payment
Individuals who are able to access their pension and receive unreduced benefits may
exercise any of their normal rights under scheme rules to chose to augment their pension
benefits using the voluntary severance payment.
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7
Application Process
7.1
The application process has two stages of consideration: an initial discussion with the
relevant designated person for the type of staff and then consideration at an institutional
level. The relevant persons to consider applications are:
Academic Staff
Stage 1:
Contact
designated
person
Stage 2:
7.2
8
Meeting
with
Head of School or
nominee
PVC Head of College*
MPSS and Support Staff
Written expression of
interest to:
- College Registrar
(School based staff)
or
- Director of HR
Operations (corporate
Professional Services
staff)
Senior Professional
Staff
Meeting
with
Director of HR
Panel consideration
Chief Operating Officer*
Chief Operating Officer*
* In consultation as set out below
Vice-Chancellor approval
The detailed process is set out in the following sections.
Preliminary expression of interest (Stage 1)
8.1
Stage 1 involves a preliminary expression of interest. It is exploratory and without
commitment. It is of course possible for members of staff to have informal discussions with
their line manager in advance of any preliminary expression of interest.
8.2
A member of staff interested in applying for Voluntary Severance should contact the
designated person in the first instance to indicate interest.
8.3

Academic and Senior Professional Staff should arrange a meeting with the relevant
designated person to discuss the possibility of their application being supported at this
first stage. At this meeting the designated person will indicate whether or not the
application can be supported. Applications which are supported can progress to Stage 2
with the member of staff’s agreement.

MPSS and Support Staff should make a written application to the relevant designated
person seeking support for their application at this first stage on the relevant form. Initial
consideration of applications from these staff groups will be co-ordinated across
professional services and colleges and considered by a monthly panel meeting involving
representation from both areas. Management input will be sought and received from the
relevant School or Department to enable consideration. Applications will be considered in
the light of the overall staffing of both colleges and professional services. Following initial
consideration, a discussion will be held with the individuals to indicate whether or not the
application can be supported and progress to stage 2.
A member of staff whose application is not supported by the designated person at Stage 1
may choose to submit a formal application in stage 2, with the appropriate annotation that
the case was not supported at the first stage.
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9
Preparing and submitting the formal application (Stage 2)
9.1
The member of staff who wishes to take forward a formal application should then contact the
designated Human Resources Manager. The HR Manager will formalise details of the
estimated compensation payment to establish whether the member of staff is prepared to
proceed.
9.2
Members of staff over the age of 55 should inform the HR Manager whether they wish to
access their Pension. If so, the HR Manager will also formalise pension scheme figures,
including any reduction to the pension payable and the effect on the pension of putting the
severance lump sum into the pension scheme. As stated above, the University will not
contribute more than the standard voluntary severance payment.
9.3
If, having considered the package, the member of Staff wishes to proceed they should make
a formal application by completing Section 1 of the Voluntary Severance Form and send it
(by email if possible) to the designated person for final completion.
9.4
If the designated person receives a number of applications, s/he should consider each
application firstly on an individual basis and then consider if the area is able to support the
loss of all the relevant posts, bearing in mind that the overall aim of the scheme is to ensure
that each School, College and Professional Services Department has and can retain a staff
profile equipped to take the University forward.
9.5
Applications will be considered and decided at Stage 1 and Stage 2 on a regular basis
throughout the scheme’s duration until the Voluntary Severance Scheme Fund is exhausted.
If the scheme is oversubscribed it may be necessary to prioritise applications.
9.6
The designated person should complete Section 2 of the Voluntary Severance Form,
providing the full business case and the reasons for their support and submit it to Karen
Deverell, the HR Manager responsible for co-ordinating the scheme by the agreed deadline.
She will send it on to the Head of College/Chief Operating Officer as appropriate.
9.7
Applications will be reviewed by the PVC Heads of College and Chief Operating Officer in
conjunction with the Deputy Vice-Chancellor, Directors of Finance and HR. Advice may be
taken from the thematic PVCs.
9.8
A formal recommendation will be made to the Vice-Chancellor, whose decision is final. This
is a discretionary, non-contractual scheme and there is no right of appeal.
10 Process for outcomes
10.1
The designated HR Manager will confirm the outcome of the decision in writing to the
designated person and to the staff member.
10.2
The designated HR Manager will write to the member of staff with the full details of the
payment, the agreed date of termination and a Compromise Agreement. The individual will
be required to confirm acceptance on the terms provided and sign the Compromise
Agreement before any payment is processed.
10.3
Any Payments made in excess of £75,000 will be reported in line with the University’s
Financial Rules and Regulations.
Approved Scheme
12 February 2013
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Appendix 1:
Stage 1 Expression of interest form for MPSS and Support Staff
Cardiff University
Expression of Interest in Voluntary Severance, 2013
Full Name
Staff Number
Contact telephone
no.
Preferred email
School/Professional
Services Dept.
Salary £ p.a. (if
known)
Job title and Grade
Proposed leaving date (for discussion):
You are encouraged to discuss your expression of interest with your manager, if possible.
We will need to discuss your expression of interest with your manager before a decision is taken.
 My manager is aware of my expression of interest
 Please contact me before any discussions with my manager
Please set out briefly the reason why the University should consider your application for
severance. If you wish, you can include some suggestions on how your work could be
covered or rearranged.
I confirm that:
I have read the University Voluntary Severance Scheme
I am applying for Voluntary Severance under the terms detailed in the University Scheme;
I have read the Scheme and understand that if my application is accepted, I will leave the
University’s employment on an agreed date in 2013; and
I understand that I would need to sign a compromise agreement as part of the consideration
for the Voluntary Severance payment.
Signed:
Date:
Please e-mail this form to the relevant College Registrar/ Director HR Operations
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Appendix 2: Stage 2 Application form (all staff)
Cardiff University
Application for Voluntary Severance, 2013
Full Name
Staff Number
Payroll Number
School/Professional
Services Dept.
Work telephone
Preferred email
Job title and
Grade
Salary £ p.a.
Proposed leaving date
discussed:
Estimate of Payment
Your intentions regarding your pension
Please complete only if you wish to access your pension on leaving.
NB Completion of the pension section helps you to ensure smooth transition to its payment. It does
not form part of the consideration of any application.
Are you entitled to access your pension now and will you be making a request
to the pension scheme to do so? (Yes/No)
If you intend to access your pension, are you entitled to immediate and
Yes/No
unreduced payments of benefits?
If you are entitled to immediate and unreduced payment of benefits, do you
wish to explore the possibility of using all or part of the voluntary severance
payment to augment pension benefits?
Yes/No
If you are not entitled to unreduced payment of benefits, please state whether
you are:
Please insert the
number of the
relevant option
here:
 accepting reduced benefits?
 Using the severance payment lump sum to meet the full cost of buying out
the actuarial reduction and to be paid any balance of the lump sum
personally?
Option:
 Use all of the severance payment lump sum to contribute to the full cost of
buying out the actuarial reduction and to make good the difference by
personal cheque payable to the University?
I confirm that:
I have read the University Voluntary Severance Scheme
I am applying for Voluntary Severance under the terms detailed in the University Scheme;
I have read the Scheme and understand that if my application is accepted, I will leave the
University’s employment on an agreed date in 2013; and
I understand that I would need to sign a compromise agreement as part of the consideration
for the Voluntary Severance payment.
Signed:
Date:
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Once completed, please pass this form to the designated person (section 7 of the scheme) for
completion of the Business Case.
Cardiff University Voluntary Severance Scheme 2013
Business Case
This application meets the criteria for the 2013 Scheme in the following way:
(free text box)
I confirm that this application for Voluntary Separation will be of benefit to the
School/Professional Services and that it has my support.
Signed
Designated
Person
Date
Please pass completed form to the Stage 2 co-ordinator, Karen Deverell (deverellk@cardiff.ac.uk).
.
Completion by Head of College/Chief Operating Officer
Application
Approved?
(free text box)
Rationale:
Criteria met are (circle criteria number(s)): A B C D
Ranking position of case (if appropriate)
 Within budget
Confirmed
Leaving Date
Payment
Application
rejected?
(free text box)
Rationale:
Criteria not met are (circle criteria number(s)): A B C D
Ranking position of case (if appropriate)
 Outside budget following ranking
Approvals
PVC/COO
HRD
FD
VC
Signed
Date
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