9 May 2012

How to work out an APS Voluntary Redundancy Payout?

| ace2279
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So with the news in the Budget that APS jobs are on the block again I was wondering if anyone out there knows how to calculate (even roughly) what payout one might get from an APS VR.

It would be good to get an idea of the potential payout before making it known that one is considering it – just works better that way.

So anyone out there know how to calculate it?

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Usually it’s 2 weeks for each year of service for the redundancy portion. The minimum is 4 weeks payout, but the maximum is 48 weeks. So if you’ve worked in the APS continuously for more than 24 years, you’ll still only get 48 weeks in your redundancy pay. Any leave without pay not to count for service is deducted. Also if you have any breaks in service greater than 12 months the previous service does not count. i.e. if you worked at one department for 12 years then left and returned to the APS more than a year later, the first 12 years won’t count for your redundancy pay.

Redundancies, employment termination payments, leave in lieu etc can be quite complex to calculate, also if you have full and part time service as well so you are best to contact your HR or Payroll person and ask them for a confidential payout estimate.

No-one in the old defined benefits schemes (pre mid 2005 start) should take a VR. The superannuation conditions are gold.

If you’re able to give your HR section a date you expect to wander off, they should be able to provide you with an estimate. Worked for me at Centrelink, and wasn’t too far off the mark.

Keep in mind that any leave you take between now & then, though, will be removed from the equation.

goggles13 said :

don’t believe everything you read about APS job cuts!

I was in Health when there were big job cuts around 93/4 perhaps, in my Division there were more people puttin up their hands , than packages available.

The above is all good plus you then need to understand your Super options. The Comsuper web-site has lots of good information as well as an estimator (if you register)

Disinformation12:48 pm 09 May 12

The only reliable method is to consult your HR department about your individual circumstances based on your Enterprise agreement.

2 weeks pay for every year of service, plus annual and long service leave, is standard. Then depending on the time and place, and how badly they want people to go, there are other sweeteners in there like a “consideration period” – sometimes an extra couple of months. Often there are other bits and pieces like cash towards financial advice or re-training. Although word on the street is current offers are very poor compared with what has been offered in the past.

For me the most confusing part is the restriction period, i.e. how long until you can work in the public service again. The rules have recently changed, with an overall reduction in the amount of time you’re locked out. Basically it says your final payout figure, divided by the number of weeks you have been paid out, is your restriction period. What??

This will give you a rough estimate: 8 weeks pay + [number of years service (max 20) x 2 weeks pay] + annual leave payout + long service leave payout.

There are also other payments that can be made in lieu of the consideration period and/or notice period if an offer is accepted early. Depending on your age the tax treatment for redundancy payouts can also be very generous so it’s possible you may receive more than the calculation above will yield.

Disclaimer: this is intended rough guide only and does not constitute financial advice of any sort.

don’t believe everything you read about APS job cuts!

Rough rule of thumb: two weeks for every year of continuous service. Continuous service does not include any leave taken without pay, and is considered 50% when on leave at half pay.

Your Enterprise Agreement is your friend. It will be in there… somewhere.

As deejay says, depends on your Department’s EA. It can also be affected by when you joined your organisation and what agreements (and for some agencies certain Acts) were in place at that time. Some of them have Grandfather clauses in them so make sure you check for those as well.

devils_advocate11:30 am 09 May 12

one large dept is offering 2 weeks pay for each year of continuous service. Don’t ask me what does and doesn’t count as continuous service because that appeared to be the most complex aspect of it all.

I believe it varies from agency to agency. The formula is usually found in your enterprise agreement.

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