What has changed in the MPSS framework?

The MPSS framework has been revised to reflect the taxation treatment of Targeted Voluntary Employment Separation payments and enable voluntary separations to continue.

The revised MPSS also provides for a Head of Agency to approve an additional payment where applicable. The additional payment is calculated by reference to the difference between the calculated tax withheld if the relevant payment is treated as an ETP and the calculated tax that would have been withheld had the payment qualified as a GRP. It is intended to provide the employee with a comparable net financial outcome at the time of payment.

Existing requirements applying to a Targeted Voluntary employment Separation continue to apply, including the requirement that the employee’s position is abolished for the Targeted Voluntary Employment Separation to proceed.