Reporter 424, 5 October 1998


THE UNIVERSITY OF LEEDS

To: Members of the Support Staff (Clerical and Ancillary)

Premature Retirement and Mobility Incentive Schemes, 1998/99

Consideration has now been given to the principles that will apply in the year

1 August 1998 - 31 July 1999 to premature retirement and voluntary severance.

Applications are invited from members of the Support Staff for:-

· early retirement with enhanced benefits if they will be aged between 55 and 65 at 31 July 1999.

· voluntary severance under the Mobility Incentive Scheme (MIS) if they will be under 50 years of age on 31 July 1999 or under the special MIS if they are aged over 50 and under 55 on that date.

1. Early retirement

(i) Applications will only be accepted if they are judged to be in the University`s managerial interest.

(ii) Applicants for early retirement must hold a permanent superannuable post financed from HEFCE (University) funds and must have completed five years` pensionable service recognised by the Pension and Assurance Scheme (PAS).

(iii) Staff granted early retirement will be required to relinquish their posts on or before 31 July 1999.

(iv) Applicants must not have resigned or accepted a post elsewhere at the time of application.

(v) The extra pensionable service which may be purchased by the University to enhance the early retirement benefits of a member of staff will be up to a maximum of five years, the actual number of years depending on the age or pensionable service of the individual concerned or the University`s judgement of its managerial interest.

(vi) No redundancy payments will be available; enhancement of benefits will be through the purchase of extra pensionable service only.

(vii)If a national pay increase is agreed which would apply retrospectively to any period of employment prior to early retirement, back pay will be paid and the pension recalculated accordingly.

2. Mobility Incentive Scheme (MIS)

(i) Members of staff who are in permanent, University funded posts and who are below the age of 50 may apply for severance under MIS.

(ii) Applicants must have completed a minimum of three years` service with the University.

(iii) Applicants who are granted MIS will receive a lump sum which will be decided on an individual basis. This will in no case, exceed, and may well be lower than, a guideline figure of two years` net* pay and will include any entitlement to redundancy pay. It will be a round figure which reflects the judgement of managerial interest informed by the resource centre`s staffing strategy. The sum offered will, therefore, not be negotiable, and will not be modified in accordance with any back- dated pay increase or pay increase agreed after the offer is made. MIS lump sums are tax-free up to £30,000, but any excess over this amount will be subject to Income Tax.

*N.B. “Net pay” is defined as average take-home pay, plus any amounts deducted from gross pay on a voluntary basis e.g. Trade Union subscriptions, parking permit charges, pension AVCs etc.

(iv) Applicants must not have resigned or accepted a post elsewhere at the time of application.

(v) Staff granted severance under this scheme will be required to relinquish their posts on or before 31 July 1999.

(vi) Staff leaving under MIS will not normally be re-engaged by the University in any capacity. However, in certain circumstances, (e.g. where the individual possesses specialist skills or experience), applications for advertised posts within the University may be accepted, but only after a period of not less than two years has elapsed since the original leaving date.

3. Special Mobility Incentive Scheme for Support Staff

(i) The University cannot accept applications for PRT from members of the Support Staff who are between 50 and 55 years of age. However, such members of staff may apply to leave service under a Special Mobility Incentive Scheme. Under this scheme, applications will be considered solely in terms of the managerial interest informed by the resource centre`s staffing strategy. Applicants who are granted MIS under this special arrangement will receive a lump sum which will be decided on an individual basis in accordance with the principles set out in paragraph 2(iii) above.

(ii) Staff who leave under this Special Mobility Incentive Scheme may, in addition to their MIS cash sum, opt to have their pension benefits accruing from actual pensionable service at the date of leaving paid immediately, but this will be on a reduced basis to take account of early payment. Otherwise, accrued benefits may be deferred until the age of 60 (when they will be payable unreduced), or may be transferred to another approved pension arrangement.

(iii) Applicants for severance under this scheme must have completed a minimum of three years` service with the University, be in a permanent University-funded post and must not have resigned or accepted another post elsewhere at the time of application. As with normal MIS, staff applying must be prepared to relinquish their posts on or before 31 July 1999, and may not apply for advertised vacancies within the University until a period of not less than two years has elapsed since their date of leaving.

4. Application Procedure

(i) Members of staff seeking general advice about whether their applications for either early retirement or severance under MIS are likely to be regarded as being in the managerial interest should consult their head of department in the first instance.

Final decisions on whether any particular application is in the University’s mangerial interest and on the terms of any offer will, however, be made by the University.

(ii) Members of staff wishing to apply for PRT or MIS should contact the Pensions Manager (Ext. 4138) who will provide them with an application form. Estimates of the enhanced pension benefits payable under PRT will also be provided. Estimates of MIS payments cannot be provided.

(iii) Completed application forms should be returned to the Pensions Manager, who will then arrange for the application to be considered by the Pro-Vice-Chancellor for Staff in the light of comments received from the Head of Department/Resource Centre.

(iv) Members of staff who submit a formal application must advise their head of department when they actually apply.

(v) Members of staff whose applications are approved will receive a formal written offer of PRT/MIS. Only an offer made by the Pro-Vice-Chancellor for Staff or the Director of Human Resources or his nominee on the authority of the University Council and accepted by the member of staff will be binding. Advice given in good faith by any officer of the University cannot be construed as constituting an offer.

(vi) All applications to retire early or voluntarily sever employment with the University under the above terms should be sent to the Pensions Manager by Friday, 26 February 1999.

September 1998


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