Current Issues - 2000
31 October 2000
Update - VOLUNTARY SEVERANCE ARRANGEMENTS
On the 17th October 2000 the Secretary of State advised that the issues raised by the Staff Side Associations would be addressed by 31st October. At a meeting today with the NIO Officials, the following clarification was given. For ease of reference I will include the issues dealt with on the 17th.
1. Use of Basic Salary Multiplier
In the calculation of the gross severance lump sum at page 1 of the RUC Pensions Branch document, average pensionable pay is included as a multiplier in the calculation. The Secretary of State has agreed that basic pay will be the multiplier used.
2. Additional Months Pay
The Secretary of State has agreed to the exemption from capping of the additional months. This is exactly as we believed it should be treated and welcome the decision.
3. Key Person Protection Scheme
It has been agreed that all members who are or may be in the KPPS Scheme will when leaving the Scheme be advised that alterations made may not comply with building control regulations. In the event of a future sale, this would cause serious difficulties. Members will be offered the facility of their home being returned to its original condition, at no cost to the member.
4. Acting Up/Temporary Salary
Members acting up or in receipt of temporary salary will receive the greater of their APP or basic salary as the multiplier in the calculation of the severance lump sum.
5. Capping Mechanism
The inclusion of elements of commutation in the capping mechanism will be removed. The capping mechanism will now compare gross pension and severance lump sum with potential earnings. This is a substantial benefit to many officers.
6. Officers Under 50
Those officers with compulsory retirement ages of 57 and 60 retiring below 50 years of age (with immediate entitlement to pension) will now have the lump sum multiplier equalised with those at 50.
The foregoing represent considerable improvements to that published in the documents issued in September and the Staff Associations welcome the Secretary of State's intervention.
7. Commutation - Short Service Members/Extensions
The Government have advised that they cannot move from the Pension Regulations which establish compulsory retirement ages as these Regulations have not altered since 1972.
We are advised that they examined methods to address the inability to commute the full quarter of pension but it was extremely complicated. Therefore, the 'current pension arrangements will continue to apply'. Some officers may well choose to defer severance applications for a time but the scheme is voluntary and officers must make decisions based upon their personal circumstances.
This is certainly not what the Federation sought and is regrettable.
We have now achieved the clarification that we sought from Government which reflects the position we believed it to be when the discussions were concluded by the Secretary of State.
Officers who wish to have their estimates re-calculated to include these changes may now apply in writing to Pensions Branch who will provide same. Members should state their preferred date for severance.
D A McClurg - Secretary - Police Association
Comprising Police Federation for NI, Superintendents' Association and Association of Chief Police Officers.
