H.E Governor Damian Todd has laid put significant steps towards ensuring a sustainable Turks and Caicos public sector was taken with the launch of a Government voluntary severance scheme on Friday, 4 November 2011.
The scheme will help TCI Ministries reach the size that they need to be efficient and to provide a much improved public service.
It will also contribute to the achievement of a balanced budget in 2012-13 and so provide a major contribution to the achievement of the pre-election milestones of public sector reform and improved public financial management.
It is hoped that much of the required efficiency improvements will be reached through the voluntary scheme. Any remaining savings will be achieved via a subsequent compulsory scheme whose terms will be less favourable than the voluntary programme.
Although the scheme is open to all sectors of the Public Service, an application is no guarantee of acceptance. This is to ensure that essential skills are retained in Government and to ensure effective management of the scheme’s costs. Statutory Bodies are not included in the voluntary scheme at this time.
The voluntary scheme is based on similar programmes being run with UK Civil Servants. Its terms include:
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Monthly paid staff (a) under 50 years of age, and (b) aged 50-54 years with post 1992 service only: One month’s pay for every year of service up to 21 years plus three months in lieu of notice plus up to 30 days accumulated untaken leave, subject to a maximum payment of two years salary.
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Monthly paid staff aged 50-54 years of age with pre-1992 service: Early severance with pension payable from age 55 of which up to 25% of pension may be commuted and paid as a lump sum on the date of severance, plus a severance payment calculated at the lesser amount of:
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the normal maximum severance of up to two years salary (one month’s pay for every year of service plus three months in lieu of notice) and up to 30 days accumulated annual leave: or
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a payment equivalent to one month’s salary for each month the officer has remaining up to pension age (55) at the date of severance plus 3 month’s in lieu of notice and 30 days accumulated undertaken annual leave (with a maximum of 24 months)
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Monthly paid staff aged 55-59 years of age with post 1992 service: 75% of TCIG pension entitlement, payable up to age 60, with NIB entitlement from that date. There is no severance or gratuity entitlement.
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Monthly paid staff aged 55-59 with pre 1992 service: Current pension entitlement and option to take a lump sum (commuted pension gratuity for a reduced pension) if not already paid. No severance.
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Persons aged 60 and over: released with no severance
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Weekly paid staff aged up to 59: one week’s pay for each year of service plus four weeks pay in lieu of notice.
Individuals who apply for voluntary redundancy but who are not accepted will be protected from any compulsory scheme for 12 months.
Individuals interested in the scheme should apply for an individual assessment by completing and signing an Expression of Interest form which should be returned to the Office of Public Service Management (OPSM) (Voluntary Severance Section) by 4.00pm on Monday 14th November 2011
Those who then wish to proceed should sign and return their forecast notification to OPSM by 4.00pm Friday 9th December 2011. TCIG will make the final decision on who receives the Voluntary Severance Package based on the needs of the organization and cost. Those who are accepted will have their employment terminated from 31 January 2012. Some people may be asked to work beyond this date to minimise disruption with salaries still drawn and compensation payments not affected.
Any subsequent compulsory redundancy scheme will see the maximum payment set at the equivalent of 12 months’ salary for those under 55 years of age and 50% of the value of the voluntary offer for person within 2 years of the 55 age. Weekly paid staff will only receive 1 week’s notice instead of 4 weeks.
A support package for staff will be available and will include counseling, developing CV and job interview skills, and financial advice from local banks as to how to make their redundancy payments work best for them.
