SVSS FAQ's
Questions and answers on key elements of the Special Voluntary Severance Scheme in the rail industry
Special Industry-wide Voluntary Severance Scheme
TSSA recently ran a series of online briefing sessions with members relating to the rail industry Special Voluntary Severance Scheme. Below are some of the frequently asked questions and answers from our members. We understand this is an ongoing process and the answers below have been given with all the latest information available the time of writing. However, should you be aware of any updates or changes to the below information please email comms@tssa.org.uk
Your questions
| Question | would anyone leaving under SVSS be expected to sign a compromise agreement? |
| Answer | This has not yet been mentioned by any of the TOCs and we do not anticipate that it will be needed. However, should you be required to sign a settlement agreement (previously known as and often referred to as compromise agreements), you must fully understand the document before you can sign it. For a settlement agreement to be legally binding the law requires an independant solictor or adviser to advise you about the terms and effect of the agreement. In the event that the matter arises, TSSA will provide legal representation and you should contact TSSA's Helpdesk for more information or raise it with your workplace reps. |
| Question | GWR reduntancy calculator ..was set previously based on age as well..so if anyone decided to express interest in redundancy hot . 10!! weeks more pay |
| Answer | The VSS scheme is an industry-wide voluntary scheme established by Network Rail & the 15 TOCs signed up to the Rail Industry Recovery Group. The terms are those that employers have jointly decided to offer at this point. It is better than some VS schemes previously offered and worse than others dependent on who you work for. TSSA has not agreed or approved the scheme. |
| Question | Are Group employees with TOC contracts eligible to apply ? |
| Answer | Eligibility requirements differ between employers. Members are encouraged to request clarification from their HR department. |
| Question | is the final figure taxable? |
| Answer | The first £30k of the severance payment is tax free. All other elements are subject to taxation based upon your own individual circumstances. |
| Question | Do we need to discuss expressing our interest with our manager before doing so? |
| You are not required to and is your peronal choice if you think it would be helpful to discuss with your manager. | |
| Question | What affects not getting £30k tax free. Can i put some of VSS if I get it into my pension. What happens to my pension if I just leave it til my NRA . If i take benefits early or directly after leaving will it be more beneficial ( early retirement factors) ? |
| Answer | You can put some of your VSS into your pension. RailPen has more details about this on their website at: https://member.railwayspensions.co.uk/in-the-scheme/paying-into-a-defined-benefit-pension/severance. There may be implications in terms of your Annual Allowance (AA) and Lifetime Allowance (LTA) which the RailPen website explains (there are also "Read as you need" guides on the RailPen Website on these subjects - see: https://member.railwayspensions.co.uk/resources/read-as-you-need-guides). If you leave under SVSS and do not take your pension until you reach your NRA, you will be regarded as a Deferred member of the RPS and your pension benefits will be preserved until your claim them. If you decide to take your benefits before your NRA, an early retirement factor will be applied. The earliest that you can clam your benefits if you have a Protected Pension Age is age 50. If you have Protected Person status under the Railway Pension Protection legislation it is usually age 50 but some members may have given this individual element of protection up. For everyone else it is age 55. The more beneficial early retirement factors - known as Schedule 8 - only apply to those RPS members with Protected Person status under the Railway Pension Protection legislation. If you qualify and decide you want to take your benefits early, you will need to apply for them before you leave service or immediately upon leaving because otherwise you will have less favourable, cost neutral (to the Pension Scheme) early retirement factors applied. |
| Question | When will this be open to Southeastern employees? |
| Answer | VSS was not previoulsy offered to Southeastern employees due to the TUPE transfer to operator of last resort. It has now been confirmed that SE Trains will open up VSS to their employees from midday on 29 October and expressions of interest must be submited by midnight on closing date of 19 November. Job functions considered safety critical across the business will not be eligible to apply for voluntary severance broadly similiar to other TOCs. |
| Question | Being safeguarded staff. If I leave under the VSS but don't immediately take my pension. Will I keep the enhanced Pension reduction early retirement factors if I do then retire before i'm 60? Thanks |
| Answer | Safeguarding applies to travel facilities. I assume you mean you have Protected Person status under the Railway Pension Protection legislation. If that is correct, in this circumstance, you will lose the Schedule 8 factors if you do not claim your pension immediately upon leaving your railway employment. However, if you delay claiming your pension until your Normal Retirement Age, ERFs will not need to be applied. |
| Question | Under what circumstances will the 30k severance be taxable ? Are there any qoutas of staff that GWR are prepared to leave the service ? |
| Answer | The tax status of the £30k is dependant on your personal income levels - for example sources of income other than your salary. However, you should check with the HMRC or IFA. We do not believe that there are any quotas in place for any employer. |
| Question | Being safeguarded staff. If I leave under the VSS but don't immediately take my pension. Will I keep the enhanced Pension reduction early retirement factors if I do then retire before i'm 60? Thanks |
| Answer | |
| Question | How is it possible that some people on the same positions were offered the scheme and some were not? |
| Answer | If you believe that the offer has not been made consistently, you should contact your local TSSA Representative to assist in raising the matter with your employer. |
| Question | Some members who showed interest have worked full time for some years and are now part time.. Is this taken into account... How's it worked out |
| Answer | You can use the RIRG calculator to work out your potential entitlement which is based on your length of service and present basic salary. |
| Question | If I get severance, would I be able to get job with another firm that supplies GWR or any FIrstGroup TOC? eg not directly as a contractor to any TOC, perhaps produces software for the railway |
| Answer | The 2 year embargo only applies to re-employment with companies signed up to the scheme |
| Question | If I leave my toc, can I apply to a new toc for a new role ?? |
| Answer | It has been said by employers that you cannot take a severance payment and then re-apply for a job within any of the other TOCS or Network Rail who signed up to the VSS scheme for minimum period of 2 years. |
| Question | can i take a rep if I have a meeting with my employer about this |
| Answer | In most circumstances there would not be any need to have a discussion with your employer at all. It would simply be a matter of applying and being accepted or rejected based on the standard terms. However, if you wish to challenge the decision, you can seek the support of a TSSA Rep and follow the review process. |
| Question | Do you have any idea how much redundancy might be coming? |
| Answer | Those who are agreed to leave under VSS with their employer will receive a payment based upon their basic salary for each year of continuous service - 2 x weekly salary plus 2 x weeks on top, plus will receive a supplementary payment and payment for any outstanding A/L. There is an online calculator each employer has setup for you to check your own calculation. |
| Question | what will happen to travel passes |
| Answer | Those with safeguarded staff travel employed pre '96 will retain this benefit. |
| Question | Will safeguarded staff keep their travel facilities on the same basis as if they retired or were made redundant? Thanks |
| Answer | Those with safeguarded staff travel employed pre '96 will retain this benefit. |
| Question | I have a colleague that has "unbroken service" they left one toc and joined another but they weren't tupe'd across, is VSS based on pension date or date with employer? |
| Answer | Severance payment is based upon length of continuous service with their current employer. If they did not previoulsy transfer under TUPE and resigned from one employer before starting a new contract with another, then for the purposes of this scheme their continuity of sevice is broken between those employers. The payment is calculated from the date they joined currrent employer if they did not transfer under TUPE. If their start date is in doubt, they should question this with HR and/or raise with one of their workplace reps if unsure. |
| Question | Will we know who has been accept by the scheme before we have to fully agree? |
| Answer | Applications to the scheme and the acceptance or rejection of applicants is a private matter between individuals and their employer. |
| Question | who do we email to express an interest in the severance? |
| Answer | Your employer should have explained this - if not clear then ask your HR department as it will be different within different companies. Also check the information held on the RIRG hub which your employer should have circulated. |
| Question | Will we know who has been accept by the scheme before we have to fully agree? |
| Answer | TSSA has asked TOCs to arrange update meetings to confirm the total number of applications received and confirmed. The names of applicants is confidential between the individual and their employer. |
| Question | hi i'm 60 years of age and have applied for the SVRS, how long do i have to wait before i can apply for my pension? is there a time frame? |
| Answer | Different employers are taking different views on this. It is something we need to deal with. |
| Question | Can employer pick an choose who they wish to decide to give severance or is that a form of discrimination? |
| Answer | It is entirely at employer discretion who they decide can leave or not under VSS. TOCs have said their decisions will be based upon business reasons, deciding what operational job roles might need to be retained, considered critical to safe-running of the railway verse job roles not considered safety critical. |
| Question | Can you please explain again the second part- supplementary pay? |
| Answer | A supplementary payment is being offered and is calculated based upon an amount equivalent to the basic pay you would receive under your contractual notice period if the contract was terminated by redunancy rather than by mutual agreement. However, the supplemenatary payment is capped at 3 months max so for anyone who has a contract of employment with a notice period greater than three months, it will be paid on a maximum of three months basic salary. |
| Question | What is the timeline for letting staff know who has been accepted for VSS? |
| Answer | This is unclear as it depends on DfT approval. It has been said that when applications are agreed, departure dates for all leavers under VSS will be completed by 31 March 2022. |
| Question | Can you withdraw your application at any point? |
| Answer | Yes - you can withdraw your expression of interest anytime up to the point you have accepted and signed off the offer of VS. When you have signed your agreement it can no longer be withdrawn after this. |
| Question | Are unions aware of any new contracts? |
| Answer | TSSA is not aware of any plans to introduce new contracts |
| Question | I've worked over 10 years, if i accept the offer & i take my pension will i then receive my staff pass as that is the biggest swing if i stay or go? |
| Answer | Those with safeguarded staff travel employed pre '96 will retain this benefit. |
| Question | Are the companies allowed to recruit into the vacancy created by anyone who leaves under the scheme? At the On Train Divisional Council in GWR we’ve been told they can’t. If the job is still required the VSS application wont be accepted |
| Answer | It s not yet clear what will happen to job roles across the rail industry after staff have mutually agreed with their employer to leave under SVS. Some TOCs have so far stated these job roles will not be backfilled. It would defeat the point of the scheme if vacancies created were subsequently filled by new starters. TSSA supports a recruitment freeze across the industry to reduce the potential for redundancies. |
| Question | Under the RIRG have there been any discussions/ideas whether Engineering in GWR will be transferred out to another operator like Hitachi ? |
| Answer | TSSA is not aware of any such discussions. |
| Question | https://member.railwayspensions.co.uk/in-the-scheme/paying-into-a-defined-benefit-pension/severance |
| Answer | |
| Question | https://member.railwayspensions.co.uk/in-the-scheme/paying-into-a-defined-benefit-pension/severance |
| Answer | |
| Question | The TOC I work for now is different to the TOC I started with and although not. Safeguarded we had an agreement that under redundancy we would keep travel passes for the new company that takes over. As this is not redundancy does this still apply |
| Answer | |
| Question | I am close to retirement age will this affect my companies decision whether my application for severance is accepted? |
| Answer | We understand that the rationale for acceptance or rejection of applications is based on factors such as safety and the type of role rather than personal characteristics. However, it is entirely a matter for each employer to decide. However, TSSA did secure a review process where decisions can be challenged and the rationale described to individuals who might think that they are being treated unfairly. |
| Question | I am close to retirement age will this affect my companies decision whether my application for severance is accepted? |
| Answer | |
| Question | can you keep your staff pass ify ou are non safeguarded and have over ten years service and draw your pension |
| Answer | |
| Question | If you apply for VSS and get turned down. Would there be any union support to maintain the terms of the VSS if you were subsequently made compulsorily redundant? |
| Answer | TSSA is opposed to any compulsory redundacies and will challenge any move towards this by employers. The SVS is designed to avoid compulsory redundancy at a later stage. However, If anyone was made compulsory redundant the employer is legally obliged to make a redundacy payment eqivalent to staffs' contractual or statutory redundancy terms and is not obliged to pay any amount greater than this. TSSA would resist compulsory redundancys. |
| Question | If the TOC's will not fill the numbers through voluntary severance..do you have the rules for the compulsory redudancies? |
| Answer | TSSA is opposed to any compulsory redundancies and will fight for our members' jobs. Compulsory redundancy payments are always based upon staff contracts of employment, or statutory redundancy terms if there are no contractual redundancy terms within staff contracts of employment. |
| Question | What is the difference between redundancy and severance |
| Answer | Redundancy is the removal of a job role from a business where the work has ceased or diminished resulting in the job holder being made compulsory redundant. Severance is mutually agreed and voluntary early departure of a person. |
| Question | If redeployed/reskilled. would this include a pay cut? |
| Answer | Redeployment and re-skilling are a matter for the future when the industry has established what the future structure will be and what opportunities are available for staff. TSSA will be involved in negotiations over the framework for how redeployment and reskilling will happen in practice as there are currently various agreements with different employers covering this. |
| Question | Health and safety is a huge priority as this create a massive negative impact on staff left behind .. |
| Answer | TSSA is deeply concerned about the health, safety and well-being of our members during this period of change. We also have serious concerns over the overall safety of the railway. Our Union will take up individual and collective concerns and will challenge any employer who risks our members' health or their personal safety. |
| Question | GWR reduntancy is 10weeks more pay-in my case..is this what the "supplementary pay" means? |
| Answer | The supplementary payment is a payment offered in addition to the VS payment whereby you can receive a supplemental payment with the calculated amount equivalent to basic pay you would receive under your contractual notice period - if the contract was being terminated by the employer rather than by mutual consent. The supplemnentary payment is capped at 3 months max. |
| Question | I work in a Travel Centre and there are a lot of rumours going round that booking office and travel centres could be one of the area’s where staff cuts are the most. With most tickets now going mobile or are booked on line |
| Answer | |
| Question | How much of your severance payment can you pay into the pension scheme as a one off payment? |
| Answer | |
| Question | Can they reject any application of SVRS |
| Answer | Yes - it is at employer discretion. However, if you believe that all factors were not considered properly in reaching the decision, you may use the review process to supply additional information and have the decision reviewed. |
| Question | I think my contractual notice is 6 months - is the supplementary payment in the SVSS capped at 12 weeks? |
| Answer | Yes - it is capped at 3 months maximum. |
| Question | If you don't apply for vss and then later on there are compulsory redundancies, would the payment be less? |
| Answer | Compulsory redundancy payments are based upon staffs contractual redundancy terms or statutory redundancy terms if there are no contractual terms. The formulae for calculating in both cases will be different to the formulae used in this VSS scheme. The VS scheme has been designed by employers to try avoid compulsory redundancy. TSSA is opposed to compulsory redundancy. |
| Type | Content |
| Question | If accepted for severance, has there been any indications what timescale they want staff to leave the industry within? Certainly my line manager would like there to be a decent handover period as it would not be fair on those left behind. |
| Answer | The timescales for departure are likely to depend on the role concerned and the requirement for handover etc. However it is likely to be no later than March/April 2022 and potentially much earlier in some cases. |
| Question | Hi - seems unfair that if you defer your pension then you lose the Schedule 8 protections. Particularly as protected employees have been paying increased contributions to pay for this. Is there any opportunity to challenge this? |
| Answer | |
| Question | There is a bit of confusion over whether or not the role of someone who is accepted onto the scheme is subsequently scrapped after the individual leaves. Can you clarify if this is the case or not? |
| Response | It is not a redundancy scheme - it is a severance scheme so the role remains but the person leaves - removing the roles would create a redundancy. |
| Response | Therefore a major question is what happens to the work that a departing colleague leaves behind? TSSA is taking this up with employers and will be involved in consultation likley to take place at a later date. |
| Question | If you take vss and have over ten years service, are under pensionable age but close your pension, will you be able to keep your staff pass as those that retire do as you have in theory taken your pension |
| Response | staff passes will be retained by those staff who are safe-guarded, employed pre 96 |
| Question | I am a safeguarded staff member having joined BR in 1981. The company hold no record of my contract but stated, after they were unable to find anything, that my notice as a CO4 was only 4 weeks. Having checked the "red book" I believe I am entitled to 5 months notice, but this is only shown in the "red book" under the Redundancy section. Are you able to confirm this? |
| Response | we would need to establish what contractual terms you are employed on to determine whether red-book or non-red book, the supplementary payment will be equivalent to contractual notice payment but is capped at 3 months. If you can email your contact details we will speak with you individually to follow-up. |
| Question | What criteria is looked at when considering an application for VSS? IE age, position, length of service |
| Job roles and whether they are safety-critical to the business. Employers will need to retain certain roles within the business balanced alongside the numbers of indivudal applications they will receive and can agree to let go under VS. Final decisions will be based upon operational business reasons. Employers have told us that they will accept applications providing that the work can be covered and safety is not adversely impacted. | |
| Question | If not redundancy and the role doesn't go then begs the question how will the DfT / TOC's save money? |
| Answer | The roles are not likely to be backfilled and are very likely to be removed or altered as part of future reorganisations across the industry. Any such removal or alteration of roles should be consulted with TSSA as this would create a redundancy situation - even if the roles concerned are unfilled. |
Special Industry-wide Voluntary Severance Scheme
SVSS stand for Special Voluntary Severance Scheme. A voluntary severance package is a financial incentive that’s offered to an employee as an opportunity to resign or retire. Unlike most severance packages, a voluntary severance package gives the employee the option to decline the offer.
No. As the name suggests, it is taken voluntarily by the employee. This means there’s no obligation for you to accept the terms offered by your employer. Your employer will notify you if you’re eligible to express an interest in the industry’s voluntary severance scheme.
No, it is at the employer's discretion who is accepted for SVSS. However, if you believe that all factors were not considered properly in reaching the decision, you may use the review process to supply additional information and have the decision reviewed.
This is calculated depending on your length of service. You can visit the Voluntary severance scheme calculator published by the Rail Delivery Group.
There is no requirement to discuss with your manager. It would be a matter of individual choice
As soon as you stop working, it’s a good idea to find out if you're entitled to any extra support.
If you've paid enough qualifying National Insurance Contributions and are looking for new work you may be able to claim new-style Jobseeker’s Allowance (JSA).
You can apply for new-style JSA regardless of how much your household income and savings are and it's paid for up to six months.
If your household income is still very low (or you don't qualify for new-style JSA), you might be able to claim Universal Credit to help with essential living costs and other expenses, such as your rent or bringing up children.
If you're already claiming means-tested benefits, such as tax credits or Housing Benefit, losing your job may mean that you have to apply for Universal Credit instead.
What you’ll get will depend on your household income and your savings – including your redundancy package.
- To find out what you might be entitled to, use a benefit calculator on the GOV.UK website. You can also make a claim for these benefits online through the GOV.UK website.
- If you can't claim benefits you’re entitled to online, call or visit your local Jobcentre Plus. Find the one nearest to you on the DWP website
- If you live in Northern Ireland, contact your local Jobs and Benefits Office. Find the one closest to you on the nidirect website
Source: https://www.moneyhelper.org.uk/en/work/losing-your-job/considering-voluntary-redundancy
This has not been mentioned by any employer yet and we do not anticipate that it will be needed. However, should you be required to sign a settlement agreement, TSSA will provide legal representation for members. Please contact the helpdesk.
Eligibility requirements differ between each employer. Members are encouraged to request clarification from their retrospective HR department.
The first £30k of the severance payment may be tax-free depending on personal circumstances. All other elements are subject to taxation.
The tax status of the £30k is dependant on your personal income levels - for example, sources of income other than your salary. However, you should check with the HMRC or IFA.
RailPen has more details about this on their website. Including information about putting some of your VSS into your pension. There may be implications in terms of your Annual Allowance (AA) and Lifetime Allowance (LTA) which the RailPen website explains also please refer to the "Read as you need" guides on these subjects. If you leave under SVSS and do not take your pension until you reach your NRA, you will be regarded as a Deferred member of the RPS and your pension benefits will be preserved until your claim them. If you decide to take your benefits before your NRA, an early retirement factor will be applied. The earliest that you can claim your benefits if you have a Protected Pension Age is age 50. If you have Protected Person status under the Railway Pension Protection legislation it is usually age 50 but some members may have given this individual element of protection up. For everyone else, it is age 55. The more beneficial early retirement factors - known as Schedule 8 - only apply to those RPS members with Protected Person status under the Railway Pension Protection legislation. If you qualify and decide you want to take your benefits early, you will need to apply for them before you leave service or immediately upon leaving because otherwise, you will have less favourable cost-neutral (to the Pension Scheme) early retirement factors applied.
VSS was not previously offered to Southeastern employees due to the ongoing TUPE transfer to operator of last resort. It has now been confirmed that SE Trains will open up VSS to their employees from midday on 29th October 2021 and expressions of interest must be submitted by midnight on closing date of 19 November. Job functions considered safety critical across the business will not be eligible to apply for voluntary severance broadly similar to other TOCs.
We do not believe that there are any quotas in place for any employer.
If you believe that the offer has not been made consistently, you should contact your local TSSA Representative to assist in raising the matter with your employer.
The 2 year embargo only applies to re-employment with companies signed up to the scheme.
In most circumstances, there would not be any need to have a discussion with your employer at all. It would simply be a matter of applying and being accepted or rejected based on the standard terms. However, if you wish to challenge the decision, you can seek the support of a TSSA Rep and follow the review process.
Those with safeguarded staff travel employed pre '96 will retain this benefit.
Severance payment is based upon the length of continuous service with their current employer. If they did not previously transfer under TUPE and resigned from one employer before starting a new contract with another, then for the purposes of this scheme their continuity of service is broken between those employers. The payment is calculated from the date they joined their current employer if they did not transfer under TUPE. If their start date is in doubt, they should question this with HR and/or raise it with one of their workplace reps if unsure.
Applications to the scheme and the acceptance or rejection of applicants is a private matter between individuals and their employer.
Your employer should have explained this - if not clear then ask your HR department as it will be different within different companies. Also check the information held on the RIRG hub which your employer should have circulated.
Member advice from our Helpdesk
If you are a TSSA member and are looking for advice or assistance in connection with your employment or membership, you can contact our Members’ Helpdesk.
We can advise on a range of workplace issues including; discipline and grievance hearing, maternity rights and redundancy.
Helpdesk opening hours: 09:00 - 17:00 Monday - Thursday | 09:00 - 16:00 Friday
Please note: we cannot undertake to provide advice to non-members, to members of other unions, or to members on behalf of their partners/friends. If you are not yet a member, please join TSSA online.
Become a TSSA workplace rep
Our workplace reps occupy the most important role in our union. As a workplace rep you are a key link in the chain of communication between TSSA and its members, and between your colleagues and their employer.