There are 2 types of voluntary early release schemes:
- voluntary early retirement (VER)
- voluntary redundancy (VR)
For schools employed staff, talk to your headteacher or schools support team.
Voluntary early retirement (VER)
This scheme is only available to employees aged between 55 and 59 years at the date of leaving, who have been a member of the pension scheme for at least 2 years. Applications are considered against set criteria including the needs of the service and affordability.
If approved for release under VER no redundancy payment is paid.
Employees who are members of the Local Government Pension Scheme (LGPS) will be entitled to receive immediate unreduced payment of their LGPS pension benefits based on scheme membership to the date of leaving.
The pension benefits are not automatically enhanced to the employee's normal pension age.
Voluntary redundancy (VR)
This scheme applies to employees who are under age 55 or age 60 and over at the date of leaving, or employees of any age who are not in the pension scheme.
Employees aged 60 or over who have been an LGPS member for at least 2 years are also entitled to receive their pension based on scheme membership to the date of redundancy if their VR application is approved. Their pension benefits are payable immediately without reduction.
The pension benefits are not automatically enhanced to the employee's normal pension age.
Employees can use the redundancy calculator to help them calculate the number of weeks pay they may receive.
Please be aware that estimated redundancy figures are calculated using basic pay only. Once approved for release, final figures will take account of average earnings.
The process for voluntary release requests
Once submitted, expressions of interest will be considered by the relevant executive director against the future business needs of the service and the cost of release.
Every effort will be made to respond speedily, however, it may take a number of weeks to confirm the outcome.
Formal offers of VER or VR
We will not make employees a formal offer of VER or VR unless it is agreed that they can be released. At that stage the employee will be required to agree to leaving us under the voluntary scheme.
Employees should not enter into any financial commitments based on any assumed agreement to their expression of interest or request.
Appeals
If your voluntary retirement or voluntary early redundancy request is refused there is no right of appeal.
Applying for voluntary redundancy (VR)
Employees will be notified if the offer of VR is available to them. Employees must have at least 2 years continuous service to qualify for a redundancy payment.
Additionally, LGPS members should be 60 or over at the point of leaving their employment to be eligible for the early payment of unreduced pension benefits as a result of VR.
Applying for voluntary early retirement (VER)
Employees will be notified if the offer of VER is available to them.
Additionally, employees must be members of the LGPS and aged between 55 and 59 at the point of leaving their employment.
Which scheme you're eligible to apply for
Your age at date of leaving will generally determine whether you can apply for VR or VER.
Pension and redundancy payments
Those granted VR who are 60 and over will receive a redundancy payment and pension benefits based on scheme membership to the date of redundancy.
Pension benefits will be released on completion of relevant pensions documentation.
The pension benefits are not automatically enhanced to the employee's normal pension age.
Redundancy payments
If eligible, employees who are over 18 and have 2 years or more continuous local government service will receive a redundancy payment based on the statutory number of weeks entitlement and actual pay.
Redundancy payments for employees under 55
Employees who are in the LGPS and are under the age of 55 at the point of being made redundant are not eligible for the payment of their pension benefits.
Instead, their pension is deferred within the pension fund and can be released through a voluntary application at any point from age 55 at the earliest.
A reduction for early payment will be applied where the pension is paid before the person's normal pension age.
Calculating pension payments
Pension will be calculated by the pensions section based on the LGPS rules. An estimate of the benefits due is on the annual pension statement sent to all LGPS members.
Where VR or VER is granted to employees aged 55 or over, pension benefits will be calculated up to the date of leaving and released without an early retirement reduction being applied.
The pension benefits are not automatically enhanced to the employee's normal pension age.
Calculating redundancy payments
Redundancy payments are calculated on basic pay (basic pay is salary excluding allowances).
Redundancy payments are based on average earnings over a 12-week period prior to leaving.
Calculating redundancy payments with breaks in service
Redundancy payments are calculated on the current period of work in whole completed years. Service accrued before a break in service will not count towards the calculation.
However, previous service with another local authority will count, provided there was no break in service (normally one calendar week).
Calculating continuous service
Continuous service is calculated on whole completed years at the date of redundancy to a maximum of 20 years' service. Part years do not count.
Leaving date
The date for those leaving under VR or VER will be by consensual agreement and may not necessarily reflect the statutory notice period.
If you're employed in more than one post within us
If you have more than one job with us, each job will be treated separately. This means an employee could be offered early release for one job and not for their other job.
Annual leave
Annual leave will be calculated on the basis of completed service.
Any outstanding leave should be taken prior to the agreed leaving date as there will be no payment in lieu of untaken leave. If annual leave entitlement has been overtaken, a deduction will be made from your final salary.
Any accrued flexi leave or TOIL should also be taken prior to the agreed leaving date as there will be no payment in lieu.
Restrictions on taking up employment with another public sector organisation after redundancy
If an offer of employment from an organisation covered by the Redundancy Payments (Local Government) (Modification) Order is accepted and starts within 4 weeks of leaving us, a redundancy payment will not be made as continuity of employment is preserved.
Restrictions on taking up employment in a private organisation or non-public sector organisation after VR or VER
There are no restrictions on taking up employment with a private organisation or a non-local government (or associate) employer provided they are not covered by the Redundancy Payments (Local Government) (Modification) Order.
Calculating pension benefit
Information about how LGPS pension benefits are worked out is available on the Derbyshire Pension Fund website.
Post entry training expenses incurred within my last 2 years' service
Those leaving on grounds of VER or VR will not be required to repay any post entry training expenses.
Flexible retirement scheme
Flexible retirement is not available under the early release schemes. Any applications will be dealt with on an individual basis. Read more information about retirement planning.
Calculating redundancy payment after taking flexible retirement
The redundancy payment will be calculated in the same way as for any employee who has not taken flexible retirement.
Employee support
A range of support is available to provide information about financial and retirement planning.
Dates for future workshops are available on Derbyshire Learning Online.
Further information
Employees should refer any questions to their manager in the first instance.