Civil and Public Servants Budget day strike

Reasons for strike action

"On 31 July the Cabinet Office first published formal proposals for reform of the Civil Service Compensation Scheme (CSCS), in effect the redundancy payment scheme for the civil service....

The proposals tear up the 1987 CSCS agreement, which in our view contains accrued rights based on the 1972 Superannuation Act and replaces them with an inferior set of conditions.

In essence the new scheme laid before Parliament will impose;

•a maximum cap of two years pay and/or £60,000 in any compensation package (however, if a civil servant earns less than £20,000 there is a maximum cap of three years pay)

•the removal of access to pension, unless it is paid for from the compensation payment

•new right for employers within the civil service and related bodies to put together their own voluntary compensation schemes, subject to the statutory minimum and maximum compensation cap being retained

•some limited protections for existing staff who leave as a result of compulsory redundancy.

The under 50s

Approximately 50% of PCS members are between 30 and 50. Anyone earning over £20,000 would suffer a detriment. This detriment becomes greater the more you earn. Nearly 40% of full-time civil servants, earn between £20,000-£30,000 per annum.

Those earning over £30,000 would lose their existing entitlement to three years compensation, which would be replaced with a two year cap, a loss of tens of thousands of pounds in many instances. Those earning between £20,000 and £30,000 would have any compensation capped at £60,000 if they had enough service.

Staff over 50 with five years service

Nearly 30% of PCS membership is aged between 50 and 59. Members with five years service, who are over 50, under the present scheme have an entitlement to an enhanced pension and lump sum with up to 6 2/3 years added.

Under the employer's proposal the entitlement to enhanced pension will be abolished for staff who become 50 in the future. For those aged at least 50 (and with five years service) at 31 March 2010 there would be an option to use their lump sum to access an unreduced pension on redundancy. Those currently between 50 and 60 will have some restricted protection but only in a compulsory redundancy situation.

Pre-1987

For the very specific group who have substantial reserved rights to CSCS benefits dating back to 1 April 1987, their current entitlements would be reduced by 60% over the period 2011-2014.

After publishing the initial proposals the Cabinet Office consulted on them and over 18,000 people responded; the overwhelming majority of whom were opposed to the proposals. Since the consultation period there have been further negotiations following ministerial meetings. Whilst PCS is willing to continue talks, the government laid an amendment to the scheme to change the CSCS before Parliament, on 5 February. The new arrangements will be effective from 1 April 2010.

If implemented as proposed, even with the limited changes included after the consultation, this will seriously reduce the legal and contractual rights of many civil servants and PCS members to compensation in a redundancy situation".