Date posted: 01/08/2010

Audience:HR Staff involved with early exit departures under the CSCS


  • To provide a business case to Cabinet Office where you are offering the more expensive early exit terms
  • Inform Cabinet Office of any planned early exit scheme and of any notice of redundancy issued.

Timing: As required

  1. The attached HR Director letter dated 27 July 2010 gives additional guidance on the early exit process provided in HR Director letter 13 July 2010 and EPN280.
  2. As it remains uncertain when the capping Bill is likely to receive Royal Assent you should still assume, for planning purposes, that voluntary early exit agreements and notices of dismissal on redundancy and on grounds of inefficiency, given on or after 22 October 2010 will be subject to capping.
  3. Your Accounting Officer must still ensure that any early exit provides value for money. Where Accounting Officer’s propose to use the more expensive current uncapped early exit terms (Compulsory Early Retirement (CER), Compulsory Early Severance (CES) and Flexible Early Retirement (FER)), it is essential that they have a robust case supporting their decision.
  4. Before you offer these more expensive early exit terms you must send a business case to Cabinet Office for approval. All business cases should be sent to Dusty Amroliwala who will consult with Treasury where appropriate.
  5. A business case is not required if you are offering Approved Early Retirement (AER) or Flexible Early Severance (FES) unless the planned exit date is after 31 March 2011.
  6. If you have already announced to staff that you will run an early exit scheme offering the more expensive terms, CER, CES or FER, you do not need to seek retrospective approval from Cabinet Office as long as the announcement was made on or before 12 July 2010. For early exit schemes offering the more expensive terms announced after that date, you will need to seek approval from Cabinet Office as explained in paragraph 4.
  7. Can you please also let Dusty Amroliwala know, for information only, details of all voluntary early exit schemes you are launching and any notice of redundancy you issue. Please include the terms you are offering and the number of exits you are seeking to achieve.
  8. Please also note that Cabinet Office proposes to reinstate the AER terms for the premium scheme (backdated to 1 April 2010 to fit with the quashing order) in future legislation. The terms will be subject to any conditions which the Minister for the Cabinet Office may impose. In the meantime, if you wish to offer AER for premium scheme members, please apply to the Treasury for approval on an ex-gratia basis.


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1 August 2010
Last updated:
24 April 2023