Annex 6F Civil Service Compensation Scheme (CSCS) - 2010 guidance for employers

Aug 31, 2026

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Annex 6F sets out 2010 guidance for employers on the Civil Service Compensation Scheme (CSCS), focusing on early departure arrangements under Voluntary Exit (including Mutually Agreed Exits), Voluntary Redundancy, and Compulsory Redundancy. It explains how organizations determine the appropriate exit scheme, the tariff and limits based on scheme pension age, restrictions on pay calculations, and required Cabinet Office approvals. The annex also covers discretion, notice periods, pension-related options, re-employment, employer costs, and tax treatment.

LanguageEnglish

CategoryForms

FormatDOCX

Pages26

Reading Time9 min

AccessFree to download

Early departure terms

Voluntary Exit including Mutually Agreed Exits (MAEs)

Tariff

Employer’s discretion

Cabinet Office approval

Employee’s option to receive an unreduced pension on VE

Annex 6F Civil Service Compensation Scheme (CSCS) 2010 guidance for employers _________________________________________________________________________ 1. Early departure terms 2. Voluntary Exit(VE) Including Mutually Agreed Exits (MAEs) 3. Voluntary Redundancy (VR) 4. Compulsory Redundancy(CR) 5. Scheme definitions and miscellaneous information 6. Notice periods 7. Added pension 8. Pension Sharing and Earmarking on Divorce 9. Re-employment 10. Employer costs 11. Tax 1. Early departure terms at a glance _________________________________________________________________________ There are three categories of early departure under the 2010 terms. They are: Voluntary Exit(VE) including Mutually Agreed Exits (MAEs) Voluntary Redundancy (VR), and Compulsory Redundancy(CR). The main features of the terms are: The decision tree below is intended as a guide to help organisations in determining the most appropriate exit scheme under the 2010 terms: 2. Voluntary Exit including Mutually Agreed Exits (MAEs) _________________________________________________________________________ Voluntary exits (VEs) can be offered in the interests of workforce efficiency and where employers wish to reduce staff numbers, to support organisational changes, address promotion blockages and where there is limited efficiency. There is no compulsion on individuals to accept the offer; it is an agreement between the employer and employee. Broadly, VE may be used in the following ways: Bulk Voluntary Exit Schemes where the department may open a scheme for a large number of people and invite individuals to apply. These are often used to reduce the size of the workforce. An Individual Voluntary Exit which can be used in individual cases to avoid the need for voluntary or compulsory redundancy at a later stage, where there is the prospect of redundancy on the horizon. A Mutually Agreed Exit which is offered to an individual, in the interests of workforce efficiency, to support organisational changes and where there is limited efficiency. For more information on Mutually Agreed Exits, and the circumstances when these may be appropriate, please see HYPERLINK "https://www.civilservicepensionscheme.org.uk/application-for-scheme-approval-form" \h here. 2.a Tariff There is a standard tariff of 1 month’s pay per year of service up to a maximum of 21 months’ pay, for those under scheme pension age (see Annex 6H for standard tariff cost estimator). There is a maximum of 6 months’ pay for those over scheme pension age (for transition members who have benefits in the Principal Civil Service Pension Scheme and alpha, it is the alpha pension age which applies). Tapering of compensation will apply where the employee is close to scheme pension age as explained in paragraph 5.i of this document. Employers must apply the restriction on the pay to the highest paid explained in paragraph 5.c of this document. The compensation payment cannot be less than the Statutory Redundancy (SR) payment that would be payable on Redundancy. 2.b Employer’s discretion Employers can, if they wish, offer more or less than the standard tariff. Cabinet Office approval is required regardless of the level of benefits being offered. The minimum an employer can offer is equal to the amount that would be due under Statutory Redundancy terms. The maximum an employer can offer is twice the standard tariff subject to the limits explained in paragraph 2.a of this document. The approval of the Cabinet Office Minister is required for any tariff above the standard, and employers must provide a clear business case justification if they wish to do this. Employers can waive the 2-year qualifying period or reduce it. Employers may apply the protection for lower paid staff explained in paragraph 5.b of this document. Employers can offer to top up the compensation payment for those with at least 2 years’ service who have reached minimum pension age and wish to take their pension benefits related to current service earl

FAQs

What early departure schemes are covered under the 2010 terms?

The 2010 guidance covers three categories: Voluntary Exit (including Mutually Agreed Exits), Voluntary Redundancy, and Compulsory Redundancy.

How is the standard tariff calculated for Voluntary Exit?

For those under scheme pension age, the standard tariff is 1 month’s pay per year of service up to a maximum of 21 months’ pay; for those over scheme pension age, the maximum is 6 months’ pay.

When do employers need Cabinet Office approval to launch an early departure scheme?

Employers must apply to the Cabinet Office using the appropriate template to obtain approval to launch any early departure scheme, including providing details when the exit value exceeds £95,000.

Aug 31, 2026

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