Ministry of Defence Statement of Civilian Personnel

MINISTRY OF DEFENCE STATEMENT OF CIVILIAN PERSONNEL POLICY

RESIGNATION, RETIREMENT AND PARTIAL RETIREMENT

Version 2.1. : Effective date: 1 April 2010 Page 1 of 43THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED

Version: 2.1

Effective date: 1 April 2010

EDRM file reference: 20100401-Resignation, Retirement and Partial Retirement-U

Contact: People Service Centre PPPA- 93345 7772 or 0800 345 7772 or +44 1225 829572 (if calling from overseas)

RESIGNATION, RETIREMENT AND PARTIAL RETIREMENT

DESCRIPTION

These policies and rules tell you as an employee about:

resignation; resignation after the approval of Actuarially Reduced Retirement and

Individual Approved Early Retirement; resignation with immediate payment of pension (i.e. retirement); partial retirement; the amount of notice of resignation you must give; and attending the Planning for Retirement course.

They will also explain to you as a line manager:

what you need to do when one of your staff resigns; or requests partial retirement.

OVERVIEW

Resignation is the formal means by which an employee terminates their employment. Employees may resign at any time after giving an appropriate period of notice. This PRG explains the resignation process and associated matters.

With the removal of the Normal Retirement Age from 1 April 2010 the MOD no longer requires its employees to retire at a specific age; this means that employees can carry on working and must follow the resignation process when they decide to leave and draw their pension. This PRG also explains partial retirement and the Planning for Retirement course.

EQUALITY AND DIVERSITY ASSESSMENT

This policy has been Equality and Diversity Impact Assessed in accordance with the Department’s Equality and Diversity Impact Assessment Tool against:

Part 1 Assessment Only (no diversity impact found/policy is a reflection of legal requirements and has been cleared by a Legal Adviser)


WHO DOES THIS APPLY TO?

Applies to all MOD employees, except:

MOD Police Officers and Defence Fire & Rescue Service personnel – see separate Policy, Rules & Guidance.

Locally engaged civilians Former MOD employees, pensioners and dependents Prospective employees Fee earners and contractors People seconded or on loan to the MOD from OGDs, industry and

academia, or on work experience placements (who must follow their parent organisation’s procedure)

Note: the rules and processes set out below include variations for members of the Senior Civil Service, the Royal Fleet Auxiliary, school-based teachers employed by Service Children’s Education and US Visiting Forces personnel.


TASK 1 – HOW TO RESIGN AND HOW TO APPROVE AND RECORD RESIGNATIONS



FOR YOU AS AN EMPLOYEE

WHAT YOU NEED TO KNOW

1. You may resign at any time, giving the correct period of notice for your substantive grade as follows:

Staff at Band B and above recruited or promoted to the grade on or after 2 April 1990 – 3 months;

Staff at Band B and above recruited or promoted to the grade before 2 April 1990 – 1 month;

All staff below Band B including Skill Zone – 1 month;

Teachers – 3 months notice during the summer term or 2 months notice during other terms, giving a last day of service as the last day of a school term (i.e. 30 April for Spring Term, 31 August for Summer Term and 31 December for Winter Term);

Head Teachers - 4 months notice during the summer term or 3 months notice during other terms, giving a last day of service as the last day of a school term (i.e. 30 April for Spring Term, 31 August for Summer Term and 31 December for Winter Term);

RFA Employees – It is the right of all Company Service Contract employees to submit their formal resignation from the RFA Service to DACOS RFA PERS OPS, in accordance with the conditions of their contract, at any time that they choose to do so. All such resignations will only be accepted in writing and a period of three months notice to terminate employment is mandatory in all cases.

Casual Staff – 1 week unless a longer period is called for in the letter of appointment;

Fixed Term Appointments:

o Senior Civil Service – 6 monthso Band B – 1 month - normally but for some key posts the contract

may specify up to a maximum of 3 monthso C1 and below – 1 month

You must make sure that your last day of service is a working day.

One month in this instance means 28 days.

2. Contractually you are not required to give extra notice if you want to resign and claim your pension. However, you should be aware that the Pension Administrator may need about 4 months to process your pension paperwork. If you want your pension to start at the same time as your


intended last day of service, you will want to think about giving extra notice of your intention so that your pension benefits are paid on time. If you do give less than 4 months notice you will not lose your entitlement to the pension benefits for the period from your date of resignation until the date that your pension is ready to be paid. You will receive a back payment of your entitlement for this period. However, you will not receive interest on this back payment.

3. Your line manager will inform the PPPA of your resignation.

WHAT YOU NEED TO DO

1. You must submit your resignation in writing to your line manager. A template for you to use is under Related Documents - PPPA Form 034: Resignation Letter. This template ensures that your line manager and later the PPPA have all the information from you that they need at this stage. If you choose not to use the template letter, you must make sure that your letter includes all of the information asked for in the template letter.

2. If you are a member of the SCS – either substantive or employed under a Fixed Term contract – your resignation should be sent to Corporate Capability in Corporate HR, copied to your line manager. For RFA members your resignation should go to your RFA Appointer and for USVF personnel, it should go to your Business Support Team.

3. You do not have to give a reason for your resignation if you do not want to. Section 3 of the template form can be used if you would like to give reasons for your resignation, adding a further sheet if you need it.

4. If you have reached the minimum age at which you can draw your pension (see Task 2 for an explanation of minimum and normal pension ages) and want to resign and claim your pension you must make this clear in your letter of resignation. This is so the PPPA Leavers Team can ensure that your pension is calculated and paid. For the same reason you must also make clear in your resignation letter if you are resigning on Actuarially Reduced Pension terms (see Related Document - Actuarially Reduced Retirement ) or if you are resigning after receiving authority to leave on Approved Early Retirement terms (see Related Document - Individual Approved Early Retirement).

5. Your line manager will discuss your resignation letter with you. The discussion will include, for example, agreement to your last day of service and the balance of your annual leave. Your line manager will then write to you to acknowledge and accept your resignation, confirm your last day of service and the balance of your annual leave. This letter will be written and sent as quickly as possible but within 5 working days of receiving your original letter.

6. In addition to the discussion with your line manager your TLB or business unit may have a more formal exit interview policy in place.

7. If you work under a Flexible Working Hours (FWH) arrangement then


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your account must be returned to zero by your last day of service. The rules about the termination of FWH accounts can be found under

Related Documents - Flexible Working Hours.

8. To help you to keep track of what you and others need to do at the various stages of the resignation process, there is a checklist under Related Documents that you may find useful.

TIPS, HINTS AND FAQS

Q1. Can I just tell my line manager face to face that I want to resign or must I resign in writing?

A. To make sure that there is no doubt about your intention you must submit your resignation to your line manager in writing. Make sure that you keep a copy of your letter for your own records.

Q2. Can I preserve my pension if I resign?

A. Yes: If you have sufficient service. Information on the relevant pension schemes can be found on the related links.

Q3. What if I want to take up paid employment with or work as a consultant with an organisation connected with my official duties or a foreign publicly owned organisation?

A. The rules in connection with taking up such appointments can be found under Related Links - Business Appointments.

Q4. I have an advance of salary, what should I do about repayment?

A. The Policy on the repayment of advances of salary on resignation can be found under Related Links - Pay and Expenses - Advance of Salary.

Q5. How do I get an employee reference or a certificate of service?

A. You should see Related Document - Employment References and Certificates of Service for more information.

Q6. I currently have subscriptions deducted from my pay; can they continue after I leave?

A. You can find more information on this in the Related Link – How to raise queries/questions relating to your pay

FOR YOU AS A MANAGER



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1. An employee can resign at any time but must do so in writing. You cannot refuse to accept a letter of resignation.

2. Line managers have no role in the resignation process for the SCS. This is undertaken by Corporate Capability.

3. Before accepting the resignation you must check that the appropriate period of notice has been given for the substantive grade. The notice periods are as follows:

Staff at Band B and above recruited or promoted to the grade on or after 2 April 1990 – 3 months;

Staff at Band B and above recruited or promoted to the grade before 2 April 1990 – 1 month;

All staff below Band B including Skill Zone – 1 month;

Teachers – 3 months notice during the summer term or 2 months notice during other terms, giving a last day of service as the last day of a school term (i.e. 30 April for Spring Term, 31 August for Summer Term and 31 December for Winter Term);

Head Teachers - 4 months notice during the summer term or 3 months notice during other terms, giving a last day of service as the last day of a school term (i.e. 30 April for Spring Term, 31 August for Summer Term and 31 December for Winter Term);

RFA Employees – It is right of all Company Service Contract employees to submit their formal resignation from the RFA Service to DACOS RFA PERS OPS, in accordance with the conditions of their contract of employment, at any time that they choose to do so. All such resignations must only be accepted in writing and a period of three months notice to terminate employment is mandatory in all cases.

Casual Staff – 1 week unless a longer period is called for in the letter of appointment;

Fixed Term Appointments:

o Senior Civil Service – 6 monthso Band B – 1 month- normally but for some key posts the contract

may specify up to a maximum of 3 monthso C1 and below – 1 month

You must make sure that the last day of service is a working day.

One month in this instance means 28 days.

4. You can exercise discretion on the length of notice to be given and on the choice of the last day of service. If this is to be considered you must seek


advice from the PPPA about the financial implications (e.g. the employee could have an outstanding advance of salary or a shorter period of notice could result in an overpayment of salary) and then advise the employee.

5. Where disciplinary action is pending the intention must be to ensure wherever possible that any disciplinary action and the award of a penalty are completed before the individual’s last day of service. If the employee leaves before the disciplinary action is completed, the case against the individual will fall. You can neither extend the period of notice nor can you allow an individual to leave early.

6. If an employee resigns without giving notice you must telephone PPPA straight away. It may be, for example, that an individual hands in their resignation and leaves on the same day or telephones you to advise of their resignation. When you notify PPPA of the resignation they will take steps to terminate the employment.

7. If an employee has not been seen at work and no one is aware of an authorised absence you should follow the rules for absence without leave. See Related Document - Dealing with Unauthorised Absence from Work.

WHAT YOU NEED TO DO

1. If an employee writes telling you that he or she wishes to resign, you must discuss with the individual their intention. In addition you must agree the last day of service and the balance of annual leave. You can find advice on how to calculate the balance of annual leave using the Annual Leave Calculator. If the individual has been issued with MOD provided clothing or equipment you must ensure that it is returned before he/she leaves. You must also ensure that the individual hands back their MOD pass (and any building or establishment passes).

2. Within 5 working days of receiving the resignation letter you must respond in writing to the individual, copying correspondence to the PPPA to authorise the action necessary to terminate employment.

3. If the individual is looking for a shorter notice period than set out above you must seek advice from the PPPA about the financial implications before agreeing to it. You must then discuss the situation with the individual. Where a shorter notice period is agreed you must write to the individual, copied to the PPPA within 2 days of receiving the original resignation letter.

4. You must complete the template letter under Related Documents - PPPA Form 039: Acceptance of Resignation. Give the original to the individual and a copy (together with the original resignation letter) to the PPPA. If there is a paper rather than online annual leave sheet, this must also be sent to the PPPA attached to the letter.

5. The template letter asks you to certify that you have agreed the last day of service and balance of annual leave with the individual.


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6. The letter is the written authority for the PPPA to terminate employment.

7. You must send the letter and any associated material to the PPPA at:People Pay and Pensions AgencyLeavers TeamPO Box 38Cheadle Hulme Cheshire SK8 7NU

You can contact the PPPA on 93345 7772 or 0800 345 7772 or by e-mail to [email protected].

8. Having done that you must then update HRMS by recording the first day of non effective service online (not the last day of service). If you know that your employee is resigning to take their pension you must say so. Alternatively you can telephone the People Service Centre on 93345 7772 or 0800 345 7772 and a customer service agent will enter the information for you.

9. You must also examine the resignation letter to determine whether, in your view, there is a grievance or implied grievance in the body of the letter. If there is, you should then confirm (in writing) with the individual whether they want to proceed with the grievance. If so, it will be conducted in accordance with the Department’s full grievance procedure. Copies of the correspondence should be forwarded to the PPPA for inclusion on the individual’s personal file.

10. If the employee works under a Flexible Working Hours (FWH) arrangement then the account must be returned to zero by the last day of service. The rules about the termination of FWH accounts can be found under Related Documents - Working Patterns.

11. You must also consider whether a valedictory letter (see Related Document – Valedictory letters) is appropriate.

12. To help you to keep track of what you and others need to do at the various stages of the resignation process there is a checklist under Related Documents that you may find useful.


Teachers and Workers with children or vulnerable adults.Where misconduct of a teacher or other worker with children and young people, (including service personnel, under the age of 18) or vulnerable adults results in disciplinary action or dismissal, or might have led to dismissal if the individual had not resigned, the matter may need to be reported to either:

The General Teaching Council - where no issues concerning the safety or welfare of children are raised but a registered teacher is dismissed for misconduct or incompetence, or resigns in circumstances where dismissal may otherwise have been considered - http://www.gtce.org.uk .

Or The Independent Safeguarding Authority – please refer to


http://www.gtce.org.uk/

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mailto:[email protected]

http://www.isa-gov.org.uk/ for further information. If a referral is thought to be required advice should be sought from the PPPA Health Welfare and Conduct Team.


http://www.isa-gov.org.uk/

TASK 2 – RESIGNATION WITH IMMEDIATE PAYMENT OF PENSION (RETIREMENT)




1. Discussion of pensions, resignations and retirement can be confusing. It is important, therefore, to make certain distinctions:

Normal Retirement Age. Prior to April 2010, the MOD, like most employers, applied a Normal Retirement Age. This was the age at which employees were expected to retire, although individuals could apply to work beyond 65 in accordance with the rules set out in the Employment Equality (Age) Regulations 2006. For MOD purposes, age 65 was termed the Normal Retirement Age – or NRA for short. However, from April 2010, the MOD no longer has an NRA. This means that employees can continue working after 65 and must resign when they decide to retire.

Normal Pension Age. Normal pension age is the age set down in the rules of the particular occupational pension scheme at which a member can leave with full accrued pension benefits.

Minimum Pension Age. Minimum pension age is the age set down in the rules of the particular occupational pension scheme at which a member can leave, but immediate payment of accrued benefits are reduced for early payment.

Your normal and minimum pension ages will depend on the pension scheme that you are in and whether you have “Scheduled Territory Service” (further explanation of “Scheduled Territory Service” is given in paragraph 3 below).

2. Although it was commonplace for pension schemes to have a normal pension age of 60, it is increasingly the case that newer pension schemes are adopting a normal pension age of 65.

The Principal Civil Service Pension Schemes of Classic, Classic plus and Premium all have a normal pension age of 60 while the Nuvos scheme has a normal pension age of 65.

The NHS Pension Scheme has a normal pension age of 60 while the New NHS Pension Scheme has a normal pension age of 65.

The Teachers Pension Scheme (TPS) has a normal pension age of 60 for ‘existing’ members (i.e. those who were scheme members on 31 December 2006) and a normal pension age of 65 for ‘new’ members (i.e. those who have joined on or after 1 January 2007).

Members of the Merchant Navy Officers Pension Fund (MNOPF) have a normal pension age of 61 and, on resigning from the Department, can receive full accrued pension benefits between the ages of 61 and 65.

Some members of the Principal Non-Industrial Superannuation Scheme/AWE Pension Scheme (PNISS) have a normal pension age of 65 and cannot receive full accrued pension benefits before that age.

It follows that you should check the details of your particular scheme to be


sure of your normal pension age. But note that Scheduled Territory Service can reduce the age at which you can leave with full accrued benefits – see below.

3. Scheduled Territory Service - If you were posted to certain areas overseas before 1 June 1972, you are able to receive full accrued pension benefits earlier because your service is enhanced. The service is called “Scheduled Territory Service” or “hot time” (in the Teachers Pension Scheme the service is known as “Specified Country Service”). Service in these areas reckons, but does not qualify, at 1½ times the length at which it would otherwise have reckoned. Such service reduces the minimum pension age. Each complete year of actual service (established or unestablished) in any of the places to which this enhanced reckoning rule applied reduces the minimum pension age by 3 months. However, this age cannot be reduced below age 55. A full list of scheduled territories is given in the Related Document: List of Scheduled Territories.

4. Because the MOD no longer operates a Normal Retirement Age, any decision to retire (resign and claim your pension) will be yours to make. If you resign and claim your pension after reaching the minimum pension age but before reaching the normal pension age this will affect the value of your pension benefits; this is known as an actuarial reduction. However, once you reach the normal pension age, no such reduction applies. (You should consult your most recent annual benefit statement or go to the appropriate pension website shown under Related Links for more information.)

5. No more than 12 months and no less than 6 months before you reach your normal pension age the Pension Administrator will write to advise you that you are about to reach the point when you can leave the MOD and claim your full accrued pension benefits. It will be for you to decide whether you wish to resign and draw your pension at the normal pension age (e.g. 60, 65) or carry on working. You should consult your most recent annual pension statement which will set out the value of your pension benefits and any limits on your reckonable service. For example, if the scheme to which you belong (e.g. PCSPS classic) limits reckonable service to 45 years and you continue to work beyond this limit then that further service will not increase your benefits. Other schemes (e.g. the nuvos scheme) may pay higher benefits if you draw your pension after age 65. You should refer to the rules of the scheme to which you belong to understand the limits on your reckonable service and what effect continued working after age 65 may have on your eventual benefits. Ultimately, the decision is yours and if, after having determined your pension benefits, you are in any doubt you may wish to seek independent financial advice.

6. When you want to leave you must resign and follow the process described in Task 1. But bear in mind that, as stated in Task 1, the Pension Administrator may need about 4 months to process your pension paperwork. If you want your pension to start at the same time as your intended last day of service, you will need to think about giving extra notice of your intention, so that PPPA can ensure that your pension benefits are paid on time.

7. If you do not give sufficient notice for the purposes of arranging the


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payment of your pension award, you will not lose your entitlement to the pension benefits for the period from your date of resignation, until the date that your pension is ready to be paid. You will receive a back payment of your entitlement for this period. However, you will not receive interest on this back payment.

WHAT YOU NEED TO DO

1. The Pension Administrator will write to you before your normal pension age outlining the options available to you and the action you must take. If you decide to carry on working beyond your normal pension age then you need to take no action. If, however, you want to retire and take your pension, you must follow the process described in Task 1.

2. If you decide to resign you can apply for the “Planning for Retirement” course if you have not already done so. Task 6 of this document tells you what you need to do.





1. The majority of employees in the MOD have a normal pension age of 60. This means that they can leave the Department on full accrued pension benefits at any time after that age. However, in order to leave the MOD and claim their pension they must resign following the appropriate process set out in Task 1. Newer pension schemes (such as the PCSPS nuvos schemes and the new NHS and Teachers Pension Schemes) have a normal pension age of 65.

2. Some former AWE employees who retained their membership of the Principal Non-Industrial Superannuation Scheme (PNISS) have a normal pension age of 65. This means they cannot receive their full accrued pension benefits earlier than this. Members of the Merchant Navy Officers Fund (MNOF) have a pension age of 61 and can therefore leave on full accrued pension benefits at anytime between the ages of 61 and 65.

3. Because the MOD no longer operates a Normal Retirement Age (but see separate PRG for MOD Police and Defence Fire & Rescue service personnel), any decision to retire (resign and claim your pension) will be for the individual to make. If an individual resigns and claims their pension after reaching the minimum pension age but before reaching the normal pension age the value of the pension benefits will be affected; this is known as an actuarial reduction. However, once the individual reaches the normal pension age, no such reduction applies.

4. No more than 12 months and no less than 6 months before employees reach their normal pension age, the Pension Administrator will write to advise them that they are about to reach the point when they can leave the MOD and claim their full accrued pension benefits. You will receive a copy of that letter via your employee. If your employee wants to leave they must follow the process in Task 1. It is important to bear in mind that, whilst contractually an employee is not required to give extra notice if they want to resign and immediately receive their pension, the Pension Administrator may need about 4 months to process the pensions paperwork.

WHAT YOU NEED TO DO

1. If your employee intends to resign and claim their pension (i.e. retire) you must:

Tell them they must follow the procedures set down in Task 1;

Remind them about the“Planning for Retirement” course, details of which can be found at Task 6 of this document; and

Take appropriate action to find a replacement (see Related Document: Internal Recruitment and Moving Posts Internally (Excluding Non Standard Occupational Groups).


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Take action to prepare a valedictory letter (see Related Document – Valedictory Letters).



TIPS, HINTS AND FAQ

TIPS

National Insurance retirement pension (i.e. the State Pension) is payable from the Monday following the date on which the person qualifies – currently that is age 65 for men and age 60 for women (but note that the State pension for women is being gradually raised to 65 by 2020). If the 65th (or 60th) birthday falls on a Monday, the pension is payable with effect from that date. An employee may incur a gap of several days between the end of employment and the start of the State pension. Wherever possible, therefore, such staff should remain in post until the last working day before the Monday on which they are entitled to draw State pension if they want to avoid a gap in income.

FAQS

For Employees

Q1. What does “full accrued pension benefits” mean?

A. If, for example, you are in the Principal Civil Service Pension Scheme (PCSPS), it is possible to leave the MOD before you reach your normal pension age and to ask to receive your pension. Your particular pension scheme will set a minimum pension age: typically, this will be 50 or, more commonly now, 55. Provided that you are over the minimum pension age for your scheme, and the resultant pension is greater than the Guaranteed Minimum Pension, you can be paid your pension on an actuarially reduced basis. This means that it will be reduced by a certain percentage for each year that pension is paid early. The reduction is designed to take into account the fact that, because it is being paid early, your pension will be paid for a longer period of time. However, by leaving at your normal pension age you can claim your pension without the reduction of benefits or, in other words, you can receive your “full accrued benefits”. Q2. How do I know if I have “Scheduled Territories Service” or “Specified Country Service”?

A. You will only have Scheduled Territory Service if you were posted to one of the areas shown in the Related Document: List of Scheduled Territories before 1 June 1972. If you are in any doubt you can contact your pension scheme administrator. Information on the relevant pension schemes can be found under Related Links: Pension details and choices.

Q3. What happens to my pension if I continue to work beyond the normal pension age?

A. You must seek advice from your Pension Administrator (see Related Link: Pension details and choices) as to the precise impact on your pension if you continue to work beyond the normal pension age of your particular scheme. However, in very broad terms you can continue to accrue reckonable service beyond the normal pension provided that you have scope to do so. For example, the Principal Civil Service Pension Scheme 1972


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“Classic” Section allows the accrual of a maximum 45 years reckonable service up to age 65.

Q4. Can I reduce my hours but continue working?

A. If your business unit can accommodate part time working, there is no reason why you cannot reduce your hours after your minimum pension age (or at any other time). You should however, speak to your pension provider (see Related Link: Pension details and choices) to establish how a change in working hours will affect your final pension benefits. But note that you might wish to consider partial retirement in accordance with the rules of your particular pension scheme (see Task 5).

Q5. I am a member of the PNISS, how do I know if I have a minimum pension age of 60 or 65?

A. In the 1970s when you elected to remain in the PNISS rather than transfer to the PCSPS you were given a choice of whether you adopted the scheme pension age of 65 or the MOD’s pension age of 60. If you would like to be reminded of the choice that you made, you can contact the PPPA. The details are:

People, Pay and Pensions AgencyLeavers TeamPO Box 38Cheadle HulmeCheshire SK8 7NU

You can contact the PPPA on 93345 7772 or 0800 345 7772 or by e-mail to [email protected].

Q6. What if I want to take up paid employment with or work as a consultant after I retire with either an organisation connected with my official duties or a foreign publicly owned organisation?

A. The rules on taking up such appointments can be found in the Related Document – Outside Appointments and Activities.

Q7. I have an advance of salary. What should I do about repayment?

A. The policy on the repayment of advances of salary on retirement can be found in the Related Document – Advances of Salary.

Q8. I intend to continue working after I retire. If my new employer needs an employment reference who should they write to?

A. Employment references will be provided by PPPA direct to your prospective new employer. Further details can be found in the Related Document – Employment References and Certificates of Service.

Q9. Do I have to sign the Official Secrets Act (OSA) when I retire?



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A. There is no requirement to sign the OSA when you retire. You will have signed the OSA when you were recruited to the MOD and the commitments made at that time and signified by your signing the OSA are life-long.

Q10. What are the rules on confidentiality and on speaking to or dealing with the media after I have left?

A. You continue to be bound by the same rules as when you were serving – more information is in the Related Document – Standards of Conduct and Behaviour.

Q11. What happens to my PAR and am I eligible for consideration for a bonus?

A. Your PAR must be completed as normal before you leave – see Performance – Appraise and Bonuses for guidance. Any bonus recommendation will be considered in the normal way and you will be notified of the outcome.

Q12. I will be resigning on retirement from the MOD whilst I am serving overseas. Will this affect the retirement process in anyway?

A. The retirement process will still work in the normal way. (Information on the allowances that might be payable to enable you to return to the UK can be found under Related Link: Changing work location to or from overseas .

For Line managers

Q1. Can I refuse to accept an employee’s decision to resign and claim their pension after reaching their normal or minimum pension age?

A. No, but you may consider discussing the decision to resign with the individual to establish whether there is scope for their decision to be reconsidered. You should also ensure that the individual understands the effect on pension if retiring before the normal pension age. You may also want to draw their attention to the partial retirement option (see Task 5).

Q2. What are valedictory letters?

A. Valedictory letters are written for those who have worked in the MOD for 10 or more years. More information on this can be found in the Related Document – Valedictory Letters.

Q3. What is a long service medal or Imperial Service Medal, and who is responsible for deciding if someone leaving the Department should receive one?

A: More information on this medal and other awards can be found in the Related Link: Honours and awards.

Q4. If an employee indicates that they intend to work elsewhere after


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they retire from MOD can I provide an employment reference?

A. You must not provide an employment reference on behalf of the Department. If, however, you are asked to provide an employment reference in a personal capacity you may, of course, do so; but you must make it clear to the individual and the prospective employer that this is the basis on which you are acting.


TASK 3 – HOW TO WITHDRAW A RESIGNATION





1, If you change your mind about resigning once you have sent in a letter to your line manager, it may be possible to withdraw it though your line management is not obliged to accept its withdrawal.

2. Your Line manager’s decision is final.

WHAT YOU NEED TO DO

You should discuss the matter with your line management and put your request to them in writing. If they agree to the withdrawal of your resignation they will confirm this in writing to you.




It is open to an individual to request the withdrawal of a letter of resignation after it has been sent to you. You do not have to accept the withdrawal of a resignation but in making your decision there are a number of things that you may wish to consider. These may include consulting your line management chain, the level of expenditure already committed to recruiting a replacement, the value of the individual to the business, whether a new appointment has already been made and at which stage of the resignation process the request is made. These are only examples: you have to make a decision based on the particular factors before you.

WHAT YOU NEED TO DO

1. If you agree to the withdrawal of a letter of resignation, you must write to the individual to confirm your agreement, sending a copy to the PPPA at the following address:

People Pay and Pensions AgencyLeavers TeamPO Box 38Cheadle Hulme CheshireSK8 7NU

You must then telephone the PPPA on 93345 7772 or 0800 345 7772 and advise them of the withdrawal of the resignation.

2. If you do not agree that your employee can withdraw their resignation you must write to them to confirm your decision. A copy of your letter must be passed to the PPPA Leavers Team for record purposes.


TASK 4 – HOW TO CHANGE A RESIGNATION DATE



If you need to change your resignation date after it has been agreed with your line manager, it may be possible but is not guaranteed.

WHAT YOU NEED TO DO

You should discuss the matter with your line management: if they agree to a change in the date they will confirm this in writing to you.



1. If you are asked to change a last day of service for any reason, it should only be considered where the change can be achieved without affecting the termination process and where it does not affect the business.

2. Things to consider may include:

consulting your line management chain; current stage of the resignation process; current stage at which any pension has been processed; and effects on the business.

WHAT YOU NEED TO DO

3. If you agree to the change in date, you must write to the individual to confirm your agreement. In addition you must:

telephone the People Service Centre on 93345-7772 or 0800 345 -7772 to advise the Leavers Team of the change;

send PPPA a copy of your written agreement; and

complete an amended statement of annual leave for payment or recovery - PPPA Form 035: Notification of Under / Overtaken


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Annual Leave or Flexi Debit upon Leaving (Related document) with the new resignation date stating the balance of un-taken leave for payment or recovery action. Please send the form to:

People Pay and Pensions AgencyLeavers TeamPO Box 38Cheadle Hulme Cheshire SK8 7NU


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FAQs

For Employees:

Q1. Do I have to sign the Official Secrets Act (OSA)?

A. There is no requirement to sign the OSA when you leave. You will have signed the OSA when you were recruited to the MOD and the commitments made at that time and signified by your signing the OSA are life-long.

Q2. What are the rules on confidentiality after I have left and on speaking to or dealing with the media?

A. You continue to be bound by the same rules as when you were serving – more information see Related Links - Standards of Conduct and Behaviour.

Q3. What happens to my PAR and am I eligible for consideration for a bonus?

A. Your PAR should be completed as normal before you leave – see Performance – Appraise and Bonuses for guidance. Your bonus recommendation will be considered in the normal way and you will be notified of the outcome.

Q4. If my new employer needs an employment reference who should they write to?

A. Employment references will be provided by PPPA direct to your prospective new employer. Further details can be found under Related Documents - Employment References and Certificates of Service.

For Line Managers:

Q1. Can I refuse to accept a resignation?

A. No, but you may consider discussing the resignation with the individual to establish the reason for the resignation and whether there is scope for the decision to be reconsidered

Q2. Can I ask for a longer period of notice than that prescribed?

A. You cannot insist on a longer period of notice but you can discuss it with the individual and if they agree an extension may be granted. There is no compulsion on the individual to agree.

Q3. What are valedictory letters and is it appropriate to write one if someone resigns?



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A. Valedictory letters are written for those who have worked in the MOD for 10 or more years. More information on this can be found in the Related Documents - Valedictory letters.

Q4. What is a long service medal or Imperial Service Medal, and who is responsible for deciding if someone leaving the Department should receive one?

A: More information on this medal is in the Guidance on Honours and Awards under Related Links – Honours and Awards.

Q5. Can I provide an employment reference for an individual who has resigned or is resigning?

A. No, you cannot provide an employment reference on behalf of the Department. You may, however, provide a reference in a personal capacity so long as you make this clear in the reference.


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TASK 5 – PARTIAL RETIREMENT



1. Partial retirement (which might also be described as flexible or phased retirement) is designed to enable employees, who reduce their pensionable earnings by a minimum amount (by reshaping their jobs through a reduction in working hours) to take some or all of their accrued pension benefits while continuing to work. The aim is to facilitate a gradual move from work to retirement. Partial retirement will enable you to achieve a more gradual approach to retirement, reducing the amount of time you spend at work and thereby avoiding the cliff-edge effect that many dread when full retirement arrives. You can choose to draw some or all of your pension and lump sum. Your service during partial retirement can continue to build up more pension benefits, subject to scheme limits.

2. To be eligible, you have to be over the minimum pension age for your pension scheme and you must reshape your job so that your pensionable earnings reduce by a minimum amount. Note that the rules may be different for other pension schemes: for example the PCSPS requires a minimum 20% reduction in earnings while the Teachers’ Pension Scheme requires a 25% reduction in earnings. Some schemes might not offer an equivalent facility; for instance the National Health Pension Scheme (NHS PS) only offers partial retirement to members of the new NHS PS introduced from 1 April 2008 and the PNISS scheme does not have an equivalent facility. You must check the relevant website for your pension scheme. What follows in this Task relates primarily to the rules of the Civil Service Pension Schemes.

Job Reshaping3. Job reshaping is the term that has been adopted for the purposes of explaining partial retirement and is critical to a proper understanding. In essence it means no more than a modification to attendance at work (e.g. fewer hours, fewer days, reduction in the level of responsibility) so that pensionable earnings reduce by at least 20%. Your earnings may reduce by more than 20% but you will not be able to take partial retirement where your proposed reshaping would give a reduction in earnings of less than 20%. Note that it is your pensionable earnings that must reduce by at least 20%; a simple reduction in your working hours of 20% might not give a 20% reduction in pensionable earnings. Where applicable, you will need to take into account any additional allowances or shift pay in your calculations.

4. The reduction in pensionable earnings must be due to job reshaping and the expectation must be that the new working arrangement will continue until final retirement. Earnings can, of course, increase as a result of normal pay rises during the partial retirement period. But the whole aim of partial retirement is to facilitate a gradual step-down approach to full retirement. Once reduced hours/days have been agreed, a subsequent increase in attendance will not be permitted. Any request to further modify attendance


may be considered within the reduced hours already agreed but will be subject to separate line management approval.

Pension benefits5. You can choose to draw some or all of your pension and lump sum. But note that if pension is drawn before the normal pension age of the scheme, it will be reduced for early payment. Also bear in mind that if pension drawn plus the reduced salary adds up to more than the salary prior to partial retirement (the ‘salary of reference’) then the pension payable will be abated.

Is partial retirement an entitlement?6. Partial retirement is not an entitlement and its approval cannot be guaranteed. Although line management has an obligation to consider requests, business need has to come first and a request may be turned down if its approval would jeopardise the fulfilment of official tasks.

Requesting partial retirement7. Partial retirement must be approved by line management. The same process is to be used as already set out in the Related Document – Working Patterns. The Civil Service Pension website contains more information for those who are considering partial retirement and there is a calculator to help you work out the financial implications. You should go to the relevant pension website if you belong to another pension scheme (e.g. TPS or NHS Pension scheme).

Time Limits8. Applications should be made before job reshaping takes place but no later than 3 months afterwards (that is, no later than 3 months after the reduction in pensionable earnings of at least 20% has occurred). Pension will be payable from the date of job reshaping and so arrears will be paid where appropriate.

Revisions9. It is important to bear in mind that partial retirement must be viewed as a major commitment and one on which there is no going back. Consequently, you should not be seeking partial retirement unless you are absolutely certain that you are prepared to remain in the new/revised post until final retirement. As explained earlier, the whole purpose of partial retirement is to enable someone to retire gradually and to take some or all of their accrued pension benefits. In this regard, job reshaping is different to amendments to working patterns or job changes which are unrelated to partial retirement.

WHAT YOU NEED TO DO

1. The decision to apply for partial retirement is personal to you and will depend upon a mixture of factors. Financial considerations will be amongst the factors you will need to consider. The Civil Service Pensions website (www.civilservice.gov.uk/pensions) contains further guidance. There you will also see a link for “Partial Retirement – a guide for scheme members” and a calculator. These are designed to provide answers to questions you might have and help you understand the possible financial consequences for your income and final pension. You should refer to your latest annual PCSPS


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Benefit Statement (issued to you by the Pension Administrator around the time of your birthday, unless you are a member of nuvos or buying Added Pension, where your statement is issued annually after 1 April each year) which will give you a clearer picture of your accrued benefits. The CSP 15 form must not be used in order to obtain an estimate of your pension; you should use the partial retirement calculator for this. It is also your responsibility to read the booklet “Partial Retirement – a guide for scheme members”.

2. If you decide to apply for partial retirement you should follow the process set out in the Related Document – Working Patterns. Note, however, that if your proposal is agreed, you need to complete the Civil Service Pensions partial retirement form CSP 15 (see the Civil Service Pensions website) as well as the Related Document - PPPA Form 080 Notification of Change of Working Pattern which your line manager must complete.

3. You must bear in mind that approval of your request is not automatic and you must be prepared for it to be turned down if your job reshaping proposals cannot be accommodated. Where your line manager turns down a job reshaping request there will be sound business reasons which your line manager will be prepared to discuss. Only once your job reshaping proposal has been approved can you complete and submit the partial retirement form (CSP 15 which appears at the end of “Partial retirement – a guide for scheme members”) to the Pension Administrator. Once you know the date from which you will take partial retirement has been agreed, a PPPA Form 080 must be completed and both forms sent to the Working Patterns team at PPPA. In completing Section 4 of the CSP 15, the line manager should tick only the first and third of the confirmatory statements. Verification of revised pensionable earnings (second confirmatory statement in Section 4 and Section 5) will be provided by PPPA Pay.

4. Where you take partial retirement by applying for a different post – whether offering reduced hours or at a lower grade or pay band – then you will adopt the normal internal recruitment process (see the Related Link: Internal Recruitment and Moving Posts Internally (Excluding Non Standard Occupational Groups)

5. In order to assist your understanding of the processes involved in applying for partial retirement you may find it easier to read the process flow chart at the end of this Task. However, this is not a substitute for the information detailed above.



1. You should read ‘What you need to know’ for the employee above. But bear in mind that partial retirement can offer benefits to the business as well as to the employee. Job reshaping offers the same potential benefits as other alternative working patterns, in particular:

It allows the business to retain skills and expertise that might otherwise




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be lost if the individual took full retirement.

In allowing older staff to find a better work/life balance in the run up to final retirement, it can raise morale, reduce absenteeism and give a more diverse and motivated workforce.

Job reshaping can make space to bring on talent and enable valuable skills and knowledge to be passed on.

WHAT YOU NEED TO DO

1. You should familiarise yourself with the rules on considering requests for alternative working patterns set out in the Related Document – Working Patterns. You should be prepared to consider all requests carefully but bear in mind that you must balance the needs of the Department against the wishes of the individual. In approving a request, you must be completely satisfied that work will not suffer. If you turn a request down, you must explain the reasons to the individual. If, however, you can propose an alternative job reshaping that would satisfy the criteria of partial retirement and meet the individual’s wishes then you should do so.

2. You should discuss any request with your own line manager if you are in any doubt – particularly if the job reshaping is likely to have an effect on other teams or sections within the business unit.

3. You should remind the employee that, once the job reshaping has been implemented and the pension benefits are in payment, it will not be possible to increase working hours again. You may, however, consider modifications to the reshaped job but only if they do not alter the new pensionable earnings.

4. If the job reshaping is approved you must ensure the completion and submission of the Related Document - PPPA Form 080 Notification of Change of Working Pattern and the Civil Service Pensions partial retirement form CSP 15 (see the Civil Service Pensions website).

5. The Pension Administrator will send you a form CSP 16 to confirm that the employee’s partial retirement is going ahead. You must then confirm that the details on the CSP15 remain correct before completing and returning the CSP16. The CSP15 will not include the details of the employee’s pay. The Pension Administrator will then arrange for payment of lump sum/and or pension to be paid to the employee.

6. When advising the Pension Administrator of the start date of the reshaped job, you must provide the exact date and not just the month in which the job reshaping occurs.

7. You must send forms CSP15 and CSP16 promptly to allow as much time as possible to process the award, otherwise the employee may go onto their reduced salary before the lump sum and pension has been awarded.

8. If the employee decides not to go ahead with the partial retirement you







must to contact the Pension Administrator immediately and ask them not to process the award.

9. In order to assist your understanding of the processes involved in processing an application for partial retirement you may find it easier to read the process flow chart at the end of this Task. However, this is not a substitute for the information detailed above.


PARTIAL RETIREMENT – RE-SHAPING EXISTING JOB – THE PROCESS


1. Individual reads Age Retirement PRG, reads Partial Retirement booklet, uses calculator on Civil Service Pensions website, develops business case for partial retirement and submits to line manager for approval. Individual may raise PPPA F 1937 for confirmation of salary amendment if in doubt.

2. Line manager considers request, taking advice from more senior management as necessary. Assesses impact on the business unit and makes decision.

3a. Request approved. The individual and line manager complete PPPA Form 080 and CSP15 and submit both to PPPA Working Patterns Team. If a copy of PPPA F 1937 has been completed, this is to be attached to the CSP 15.

3b. Request turned down. Line manager gives reasons.

4. PPPA Working Patterns Team processes Form 080 to enable HRMS records to be amended. Passes form CSP 15 to the pay office for completion of section 5 and confirmation of 20% reduction in salary (if PPPA F 1937 not attached).

5a. PPPA Working Patterns Team writes to individual to confirm the change in working pattern and the effective date and passes CSP15 to Pensions awarding team.

6a. Pensions Administrator provides individual with an estimate of total pension benefits.

5b. PPPA Working Patterns Team writes to individual to inform them that 20% reduction in salary has not been achieved.

8. Pensions Administrator sends CSP 16 to line manager to confirm the details of the CSP 15 remain correct.

7. Individual notifies Pensions Administrator of the amount of pension they wish to take.

6b. Individual reassesses business case, seeks approval of revised proposal from line manager.

10. Pensions Administrator processes partial retirement award and sends to Capita with CSP 15 (Capita applies abatement if necessary).

9. Line manager completes CSP 16 and returns to Pensions Administrator.

PARTIAL RETIREMENT – APPLYING FOR A DIFFERENT POST – THE PROCESS


1. Individual reads Age Retirement PRG and Partial Retirement booklet and uses calculator on CSP website. Identifies different post (part-time in the same grade/pay band or full or part-time in a lower grade/pay band) which gives the required reduction in pensionable earnings from the existing post.

3. Individual applies and is offered post.

4. Individual and new line manager complete and submit CSP 15 to Pensions Administrator. (If available, PPPA F 1937 is attached.)

5. Pensions Administrator passes CSP 15 to the pay office for completion of section 5 and confirmation of 20% reduction in salary – if PPPA F 1937 not available.

7. Pensions Administrator provides individual with an estimate of total pension benefits.

8. Individual notifies Pensions Administrator of the amount of pension they wish to take.

11. Pensions Administrator processes partial retirement award and sends to Capita with CSP15 (Capita applies abatement if necessary).

6. PPPA Pay confirm salary reduction and return CSP 15 to Pensions Administrator.

2. Individual checks to ensure that the new post will result in a reduction of at least 20% in pensionable earnings. If in doubt, individual submits a pay query (PPPA Form 1937) to obtain confirmation of new pensionable earnings.

9. Pensions Administrator sends CSP 16 to line manager to confirm the details of the CSP 15 remain correct.

10. Line manager completes CSP 16 and returns to Pensions Administrator.


Q1. I want to reduce my hours but I don’t want to reduce my earnings by more than 10%. Can I apply for partial retirement?

A. No. A crucial qualifying criterion for partial retirement is that pensionable earnings must reduce by at least 20% (although the required reduction might be different if you are in a different pension scheme such as the Teachers Pension Scheme). You can reduce your earnings by more than 20% but not by less. If you want to reduce your hours by a lesser amount then you should apply for an alternative working pattern in accordance with the Related Document – Working Patterns, but note that this might affect the accrual of further pension benefits.

Q2. My request for job reshaping has been turned down. Can I appeal?

A. Again, you should follow the guidance contained in the Related Document – Working Patterns. In essence, there is no appeal system but your line manager should have explained the reasons why your request has been turned down. If you are not satisfied with the decision you can raise a grievance – see Related Document - Handling grievances and complaints.

Q3. Can you give me an example of how partial retirement might work?

A. Let’s take an example of Beth who is 61 and is working full-time on a salary of £20,000. Her line manager agrees to her moving from full-time to 3 days a week. This reduces her pensionable earnings by 40% to £12,000. Beth has 40 years service in the Classic scheme and so has built up an annual pension of £10,000 and a lump sum of £30,000. Because she is over the normal pension age for the scheme she can draw pension without any reduction for early payment. But she realises that if she draws her full annual pension of £10,000 her pension would be abated as pension plus pay (£10,000 + £12,000) would exceed her full-time salary of £20,000. Beth therefore decides to take a pension of £8,000 and a lump sum of £24,000. This represents 32 of her 40 years service. The remaining balance of 8 years service will combine with her further part-time service and will build up further pension and lump sum in Classic which she can take when she finally retires.

Q4. Does the existence of partial retirement prevent someone from retiring and then re-employing?

A. Don’t forget that the whole idea of partial retirement is to give people a chance to adjust more gradually to retirement by allowing them to achieve a different work/life balance. It doesn’t prevent those who want to from carrying on in full-time employment; nor does it stop someone retiring but, later, seeking re-employment to a different Civil Service job. If, however, someone reaches normal pension age and takes full accrued benefits but then re-employs, the abatement of pension rule is likely to affect them.


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TASK 6 – THE PLANNING FOR RETIREMENT COURSE

OVERVIEW

1. The Planning for Retirement (PfR) course is designed to help those who are about to leave at or above their normal pension age to make the transition from their current career to retirement. Details of the content of the course can be found on People Services at http://www.dblearning.dii.r.mil.uk. .

2. All employees leaving the MOD on retirement (i.e. resigning at or above the normal pension age) must be given the opportunity to attend a PfR course within 2 years of reaching their last day of service.

3. TLBs are responsible for ensuring that all those who are eligible have access to the course, either through the centrally funded DA-CMT PfR workshop or by making local arrangements such as, for example, external training providing it conforms to standards set by the DA-CMT course. The funding of any external courses provided is the responsibility of the local budget area.



1. You are entitled to attend a Planning for Retirement Course (PfR) up to 2 years before you retire (i.e. before you resign and claim your pension at or after your normal pension age). Because the date on which you retire is for you, as the employee, to decide, you must time your attendance on the PfR course to ensure you attend within the 2 years before you leave. Note that you can only attend the course once and if, having attended the course, you subsequently decide to work on longer than you originally planned you will not be allowed to attend again.

2. Early attendance on the PfR course is advisable to enable you to gain an awareness of the issues, opportunities and challenges to be faced when approaching retirement/resignation. You should try not to delay attendance until within a few weeks of your actual last day of service. This is particularly important in order to maximise the benefit from the financial and lifestyle change modules.

3. You will be given the opportunity to attend the course with your partner.

4. The travel and subsistence costs for both you and your partner are the responsibility of your employing TLB.

5. If you are unable to attend the course before your last day of service for management or health reasons you can attend the course up to 6 months after your retirement/resignation. If you necessarily undertake the course after you have left then the TLB which employed you immediately before you left will meet your travel and subsistence costs.


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WHAT YOU NEED TO DO

1. You can apply for the Planning for Retirement (PfR) course any time after you have reached your normal pension age but no more than 2 years before your planned retirement date. (So, for example, if your normal pension age is 60 but you plan to retire at age 63 then you should apply once you reach 61.) If you prefer, you can apply for the PfR course after you receive the letter from the Pensions Administrator which advises that you are approaching the normal pension age.

2. You must apply to DA-CMT, Training Centre London or follow this link for more information http://www.dblearning.dii.r.mil.uk/.

3. You can only take the course once.



1. Employees are entitled to attend a Planning for Retirement Course (PfR) up to 2 years before their date of retirement. Because employees can now decide when to retire, the onus is on the individual to apply for the PfR course at the appropriate time to ensure they attend no more than 2 years before leaving. Should the individual subsequently to decide to carry on working they will not be entitled to attend the course a second time.

2. Early attendance on the PfR course is advisable to enable the individual to gain an awareness of the issues, opportunities and challenges to be faced when approaching retirement/resignation. Employees should try not to delay attendance until within a few weeks of their actual last day of service. This is particularly important in order to maximise the benefit from the financial and lifestyle change modules.

3. Employees will be given the opportunity to attend the course with their partner.

4. The travel and subsistence costs for both the employee and their partner are the responsibility of the employing TLB.

5. If the employee is unable to attend the course before their last day of service for management or health reasons they can attend the course up to 6 months after their retirement/resignation. If employees necessarily undertake the course after they have left then the TLB which employed them immediately before leaving will meet the travel and subsistence costs.

6. Employees may apply for the PfR course up to 2 years before they retire/resign.

7. Applications must be made to DA-CMT, Training Centre London.


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Q. The reason I am taking retirement or resigning on full accrued pension now is because I am being made redundant. Can I take the MODOPS course as well as the Planning for Retirement course?

A. No, you must decide which of the 2 courses you would like to attend.
