FAQs > Public Pensions Faq

The Government has created a £13m fund to contribute towards the pensions of public servants while they volunteer with VSO or another British Volunteer Agencies' Liaison Group (BVALG) member organisation (currently, International Service (UNAIS), Student Partnership Worldwide, Skillshare International, Progressio and VSO). The fund will buy added pension benefits (or equivalent) for any current public servant who returns to a pensionable UK public service job after an overseas volunteer assignment starting between April 2008 and March 2011 and lasting between seven and 24 months.

Because the Government recognises that UK public servants who undertake structured volunteering assignments contribute to international development in poor countries and return to UK with experiences and skills that will benefit the public sector.

Because that would require each employer to budget and retain funds locally for this purpose. The existence of a central fund means the pension costs of volunteers ceases to be a local issue, leaving individuals and employers to focus on the other questions which arise in deciding an application for release for a defined period.

Only around 350 UK public servants per year take up such assignments, from a public service of some four million. They tend to be in early or career or pre-retirement, rather than in mid-career. There are many individual obstacles, but one universal one is pensions. Volunteers usually have either to resign or take an unpaid career break, and unless the employer chooses to pay pensions contributions during the absence, they face a pensions gap that will reduce their benefits at retirement.

The Government believes that a well-structured volunteer assignment that makes good use of a public servant’s skills will have subsequent benefits to both the individual and the UK public sector. It encourages a view that international volunteering is a form career development, not just unpaid leave. However, there can be no central determination of whether or not the individual returns to the same role or the same individual employer. It is a decision for each employer in consultation with employees and staff representatives whether to offer development leave for a fixed period, and/or a right to return, in any particular case.

Any UK public servant who is accepted and takes up an assignment with VSO or other BVALG member and completes between seven and 24 months overseas. Shorter or longer assignments are not eligible.

The aim will be to provide contributions/benefits broadly similar to what would have applied had the volunteer continued in UK public service. In some schemes this will be by continuing pension contributions based on pre-departure pay; in most schemes it will be to purchase added pension benefits in blocks of £250 based on the same principle. The amount of benefit due is determined by the departure salary, entitlement in months, age, and unit cost of blocks of benefit as determined by the occupational scheme. In case of doubt, final decisions about entitlement from the fund rest with VSO.

The period of actual assignment overseas, plus up to three months if the volunteer was away from paid UK public service for longer than the overseas assignment. This is to cover commitments such as courses, travel time, time taken to resettle in the UK etc.

There is no guarantee that this offer will meet every case. Where an individual is at or close to any given limit this should be discussed prior to any commitment to volunteer. There may be alternative options.

The employer may be able to recover these contributions from the fund, if and when the volunteer completes eligibility requirements (i.e. returns to pensionable employment), however this may depend on the exact arrangements agreed between VSO and the relevant pension scheme.

No, it will be purchased six months after the date of restarting such employment.

Added benefit will be paid if the volunteer re-enters any UK public service pensionable employment within the time limit and serves for at least six months.

All public service schemes are included: notably teachers, including university teachers, health service, armed forces, the Civil Service, local government, police, firefighters, parliamentarians and the judiciary.

No, subject to the normal rules of each pension scheme.

The volunteer must submit a valid application within two years of completing the volunteer assignment. This is to assist budgeting and to maximise benefits to the public service.

VSO, as agent for itself and other BVALG members. The pension benefit money is provided by central Government, and passes direct to the relevant pension scheme at the moment eligibility is confirmed.