FAQs Civil Service Mutually Agreed Resignation Scheme 2013

FAQs Civil Service Mutually Agreed Resignation Scheme 2013
1.
What is the Mutually Agreed Resignation Scheme (MARS)?
A Mutually Agreed Resignation Scheme (MARS) is a scheme under which
Departments, Boards and Offices may offer a severance payment to a civil servant
to leave their post voluntarily. A MARS helps to increase flexibility for Departments,
Boards and Offices to be able to address periods of rapid change and service
redesign.
2.
What is the purpose of the scheme?
The primary purpose of MARS is to facilitate a reduction in Civil Service staff
numbers overall by creating vacant posts which can be filled by redeployment of
staff from other jobs or as suitable alternatives for those staff facing redundancy.
The Mutually Agreed Resignation Scheme (MARS) has been designed to support
periods of change and the drive for workforce efficiencies within the Civil Service.
3.
How are MARS Payments Calculated
a) A lump sum payment based on one month’s basic pay* per year of
continuous service up to a maximum of 12 months for those under age 65.
b) The payment based on the value of the savings that can be achieved up to a
maximum value equal to 12 months pay for the individual.
4
Does the scheme apply to all Government Staff?
MARS may be made available to all civil servants except where a civil servant falls
within the criteria laid out in rule 4 of the scheme.
5.
What if a civil servant registers an interest in leaving under a MARS and
then changes their mind about applying for the scheme?
Registering an interest does not commit a civil servant to proceeding with voluntary
severance. A civil servant can withdraw their application at any time up to the point
that they sign a compromise agreement.
6.
What about civil servants currently absent from their Department, Board
or Office – will they be able to apply?
Yes, if they satisfy the eligibility criteria. This should include civil servants on
maternity leave, long term sick leave, secondment or unpaid leave. The nature of
their absence may mean communications are difficult or sensitive, but it is
important that their attention is drawn to the existence of the scheme. It is the
responsibility of Departments, Boards and Offices to identify and contact these civil
servants to inform them about the scheme.
7.
Should Departments, Boards and Offices approach civil servants directly
Last revised April 2014
to see if they are interested?
It is for Departments, Boards and Offices to ensure that all civil servants are alerted
to the scheme but Departments, Boards and Offices should not target anyone
specifically.
8.
Can individuals apply for the scheme if they have already indicated their
intention to leave the organisation prior to the launch of the scheme?
If a civil servant has already submitted their resignation or given some other kind of
clear indication that they intend to leave the organisation, they are not eligible for a
voluntary severance payment. If an individual asks to rescind their notice in order
to apply for the scheme this should not be agreed to regardless of whether a
termination notice has been completed.
9.
How do the terms of MARS compare with redundancy payments?
MARS is not a redundancy or a voluntary redundancy scheme. Entitlements to
redundancy are set out in Section B of the Civil Service Regulations.
10.
Could individuals be classed as redundant, therefore potentially able to
claim benefit?
Individuals are not being made redundant under MARS as they are leaving
voluntarily. The benefit rules are very complex and depend upon personal
circumstances. If individuals feel that they may have to rely on benefits, then they
should seek advice before submitting an application.
11.
What is basic pay?
Basic pay is defined as the pay individuals receive based on pay scale/band and as
stated on their pay slip, it does not include any additional payments other than pay
protection that is in effect on the last day of service.
12.
If an individual receives an increment after the closing date for this
scheme, will this affect their severance pay?
Basic pay will be confirmed to individuals if their application is accepted. The
payment will be based on the basic pay which they are entitled to on their last day
of service.
In instances where a backdated pay rise takes place after the date of departure, the
amount due will be paid to the individual, if appropriate.
13.
How will periods/ instances of part –time civil servants be calculated?
Periods or instances of part- time working will be calculated proportionate to
calendar time and hours worked
14.
How will periods of paid special leave be treated, such as maternity
leave?
Last revised April 2014
Periods of paid special leave, whether at full or half pay, shall be taken into account
in any MARS calculation.
15.
How will periods of unpaid special leave be treated, such as extended
maternity leave?
Whilst periods of unpaid special leave does not reckon for the purpose of pension
benefits, it does count as qualifying service and will therefore be taken into account
in any MARS calculation.
16.
Will previous service in central Government which is not civil service be
taken into account when calculating a MARS payment?
Service in other areas of IOM Government will be taken into account when
calculating a MARS payment provided that this service was gained immediately
before being appointed to the Civil Service and where continuity of service is
provided for in the contract of employment.
17.
In instances where individuals have annual leave outstanding, what
happens to their leave if their MARS application is successful?
Civil servants should be asked to use any outstanding leave during their notice
period. If this is not possible due to operational requirements they should be paid in
lieu for any outstanding annual leave due at the last day of service, provided this
has been agreed with their line manager prior to their resignation date being
finalised.
http://www.gov.im/hr/iomcs/cs_regs/section_F/annualleave.xml#f16
18.
What happens in instances where an individual has exceeded their annual
leave allowance at the date of leaving?
Those who have exceeded their annual leave allowance will be required to refund
from their salary an amount equivalent to the number of days overtaken in
accordance with Civil Service Regulation 21.
http://www.gov.im/hr/iomcs/cs_regs/section_F/annualleave.xml#f21
19.
Can individuals be re-appointed to the Civil Service if they leave under
MARS?
Civil servants leaving under MARS will not be eligible for re-appointment to the Civil
Service for 24 months following resignation, except in exceptional circumstances
with the approval of the Civil Service Commission. In such circumstances, the civil
servant will be required to repay their lump sum payment proportionate to the
remaining notional period of their compensation payment.
20.
Can an individual who is subject to Capability Procedures apply for
MARS?
Last revised April 2014
Whilst capability is not in the list of exclusions, any application made to MARS will
be considered on its individual merits and circumstance.
21.
Do I have to be a member of the Unified Pension Scheme (GUS) in order
to make a MARS application?
No, civil servants do not have to be a member of the Unified Pension Scheme in
order to make a MARS application.
22.
Can individuals who have an outstanding application for retirement on
grounds of ill-health apply for MARS?
Departments, Boards and Offices would not be able to consider a MARS application
whilst an ill health retirement application is being considered. However, if an
individual is told that an ill health retirement application was not successful and the
individual does not intend to appeal against the decision, individuals may submit an
application under MARS within the given time frame.
If individuals wish to leave their Department, Board or Office in these
circumstances, they are advised to seek further guidance prior to opting for MARS
from the PSPA
http://www.iomunifiedscheme.im
23.
How will being partially retired affect my MARS calculation?
Service incurred during the partial retirement period will be calculated proportionate
to calendar time and hours worked.
E.g. Lucy Smith Full time 01/12/01 to 31/5/07 (37 hours), partial retirement (30
hours) 01/06/07 to 31/08/12
1st period 5.5 years
2nd period 3.44 years (30 hours/ 37 hours = 0.81 x 4.25 years)
5.5 + 3.44 = 8.94 = 8 years (complete years service)
24.
Would my Pensionable Service cease if my MARS application was
accepted.
Yes ,as a departure under MARS is a resignation
25.
What happens to my pension if I leave under MARS?
Civil servants can choose to:
•
•
•
•
26.
leave their pension contributions in GUS
transfer their pension to another scheme
take their contributions out of GUS if they have less than two years service
apply for their Pension if they are over age 55.
What happens if I leave my pension contributions in the Government
Unified Scheme?
Last revised April 2014
If individuals leave their pension contributions in GUS, it will be index linked. This
means it will grow in line with the Consumer Price Index, with the annual uplift
being applied each April.
27.
If an individual is of minimum pension age; can they take a MARS
payment and apply for their pension?
If members are aged 55 or over when they leave employment they can retire and
collect their pension entitlement from the Unified Scheme. Accrual rates are
dependent on age and can be found on PSPA web site
Individuals should seek further information from the Public Sector Pension
Authority(PSPA) http://www.iomunifiedscheme.im
28.
Tapering
If you are within 1 year of retirement your MARS lump sum payment will be
calculated to a maximum of 12 months basic pay having regard to length of
service or the number of months to retirement, whichever is lesser.
Any part months will be rounded to nearest full month.
29.
I have a ‘golden letter’ which allows me to retire before aged 60 after
accruing 40 years service. If my MARS application was successful, does
this affect my MARS payment in any way?
1. If you have accrued 40 years service and are not yet aged 60, your MARS
calculation will be calculated as if you were aged 60 and any payment will
be limited to 3 months.
2. If you have not yet accrued 40 years service but are within 12 months of
doing so, any MARS payment will be subject to tapering as per the within 12
months of retirement provisions.
3. If you have over 12 months before accruing 40 years service, any MARS
payment will not be affected.
30.
How and when will my MARS application be acknowledged by the
Commission?
Where possible MARS applications will be acknowledged by the Secretary or their
delegate within 5 days of OHR receiving the completed MARS application. Both the
Accounting Officer and individual will receive notification.
31.
Will I have to wait until April 2014 to know if my MARS application has
been successful?
It is anticipated that once the MARS panel has been set up, applications will be
considered on a regular basis and that applicants will not have to wait until April
2014 for a decision. However there will be occasions when decisions are held in
abeyance and applications will be considered at a later date. On these occasions,
individuals will be informed of this.
Last revised April 2014
32.
What happens if my MARS application is successful?
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33.
Both the MARS applicant and appropriate Accounting Officer will be advised
of the panel’s decision as well as the relevant Business Partner.
The Business Partner will liaise with the Department and individual in order
that a compromise agreement can be drawn up which will contain a
mutually agreed leaving date and will set out the financial and other terms
under which the employment relationship will end.
Acceptance of the MARS offer will be subject to a timescale, which will be
advised in the MARS payment offer letter.
What happens if my MARS application is rejected, do I have a right of
appeal?

Where the MARS Panel does not approve an application, the Secretary of
the Commission will write to the civil servant advising that their application
has not been successful and why it has not been possible to approve the
application at this time.

The MARS Panel reserves the right to determine whether or not an
application will be approved and there will be no right of appeal on the part
of those civil servants whose applications are not successful.
Last revised April 2014