Voluntary Redundancy Payment

[Red Robbo]

What part of the wages is included in the VR calculations as there is much confusion over what is used to calculate the redundancy.

[Postal1]

Just wished they'ed offered it to delivery offices. I could see a lot of people taking it tbh.

[houseoflords]

Give it time, Privatisastion is on its Way.

[benn2261]

What part of the wages is included in the VR calculations as there is much confusion over what is used to calculate the redundancy.

hir redundancy is calculated on your basic pensionable pay so for instance if you have no shift allowance then it would be calculated thus 372.10 being your calculated pay for redundancy times whatever weeks your entitled to max being 104 weeks before 55 the minumum retirement age unless it`s ill health then it may be caculated diferentely.

[kevmorg]

Anything pensionable in a nutshell; Basic pay, processing payment, TPM , If your're a night worker just over half of the shift allowance; it's shown on your wage slip how much of the night shift allowance is pensionable. Think in the case of some ex PHG's, they get all their night shift allowance as pensionable, but don't quote me on that.

Years service between the ages of 16-22 = 0.5 weeks money per year in that group
Years service between the ages of 22-41 = 1.0 weeks money per year in that group
Years service between the ages of 41+ = 1.5 weeks money per year in that group

Add it all up, times it by 3.75 and you'll have a good idea of how much you can hope to get.

[Red Robbo]

Cheers Guys that's cleared that up

[Dee Plish]

A bit lost here - how can you get to 104 weeks under the calculus Kev has put up? There's probably a simple explanation I haven't got. Can anyone explain or show an example please?

[kevmorg]

A bit lost here - how can you get to 104 weeks under the calculus Kev has put up? There's probably a simple explanation I haven't got. Can anyone explain or show an example please?

The information I provided is from the Business Transformation Document. I think how it works is as follows;

Say you are 54 years old and have 25 yers service in.

19 - 22 = 1.5 weeks pay @ 0.5 weeks pay per years service
22 - 41 = 19 weeks pay @ 1.0 weeks pay per years service
41 - 54 = 19.5 weeks pay @ 1.5 weeks pay per years service

Total weeks = 40
Now times that by 3.75
= 150 weeks

The BT Document max's the payment out at 104 weeks.
If I'm wrong about this could someone let me know please as our MC is under review and I'll be doing a lot of this type of working out.

[Dee Plish]

I get you now - thanks Kev

[Wessex]

Not sure that age is allowed into the equation anymore due to RM quoting age-discrimination legislation.

[kevmorg]

Not sure that age is allowed into the equation anymore due to RM quoting age-discrimination legislation.

As I said,the information comes from the Business Transformation Document.There has been an LTB come out recently pertaining to the abolition of the default retirement age, and this has superseded the 55's and over part of the BT Document. The age groups I used in the example were just that...an example.

[vanman]

Not sure that age is allowed into the equation anymore due to RM quoting age-discrimination legislation.

As I said,the information comes from the Business Transformation Document.There has been an LTB come out recently pertaining to the abolition of the default retirement age, and this has superseded the 55's and over part of the BT Document. The age groups I used in the example were just that...an example.

There have been no changes to the terms in the BT Agreement. The recent LTB was about how they apply to people who are 64.5 or older.

The terms for those age 55+ (and in the pension scheme) are different than those for under 55's.

The 55+ terms provide for a standard VR compensation payment of 6 months pay.

plus

the immediate payment of an enhanced pension (and lump sum if appropriate)

The enhancement to pension is 37.5% of the service left between the age at leaving and age 65.

For example if some is 55 they would get an extra 3.75 years added to the pension (and lump sum).

Someone aged 57 would get an extra 3 years. etc.etc.

(By the way, 37.5% = 3/8th in old money!)

Although the pension is being paid early, there is no reduction made to it, it is in fact increased.

Some people think that the under 55 terms are better as they can produce a VR payment of up to 2 years pay - this is not the case, you need to do the sums and work out what you would get under the enhanced terms. This means a pension being paid up to 10 years early, without any reduction, but with extra years added (which you haven't paid for). That's why RM want to limit these terms going forward after the transformation programme has been completed - this will not be before April 2014 at the moment.

One final thing - if you are 55+ but not in the penson scheme, the terms are then the same as for under 55's, i.e. so many weeks for so many years, up to two years max.

My advice to anyone would be to seek proper advice from their CWU rep before making any decisions, that they may come to regret later.

[kevmorg]

Not sure that age is allowed into the equation anymore due to RM quoting age-discrimination legislation.

As I said,the information comes from the Business Transformation Document.There has been an LTB come out recently pertaining to the abolition of the default retirement age, and this has superseded the 55's and over part of the BT Document. The age groups I used in the example were just that...an example.

There have been no changes to the terms in the BT Agreement. The recent LTB was about how they apply to people who are 64.5 or older.

The terms for those age 55+ (and in the pension scheme) are different than those for under 55's.

The 55+ terms provide for a standard VR compensation payment of 6 months pay.

plus

the immediate payment of an enhanced pension (and lump sum if appropriate)

The enhancement to pension is 37.5% of the service left between the age at leaving and age 65.

For example if some is 55 they would get an extra 3.75 years added to the pension (and lump sum).

Someone aged 57 would get an extra 3 years. etc.etc.

(By the way, 37.5% = 3/8th in old money!)

Although the pension is being paid early, there is no reduction made to it, it is in fact increased.

Some people think that the under 55 terms are better as they can produce a VR payment of up to 2 years pay - this is not the case, you need to do the sums and work out what you would get under the enhanced terms. This means a pension being paid up to 10 years early, without any reduction, but with extra years added (which you haven't paid for). That's why RM want to limit these terms going forward after the transformation programme has been completed - this will not be before April 2014 at the moment.

One final thing - if you are 55+ but not in the penson scheme, the terms are then the same as for under 55's, i.e. so many weeks for so many years, up to two years max.

My advice to anyone would be to seek proper advice from their CWU rep before making any decisions, that they may come to regret later.

Thanks for that vanman. That's helped clear some clouded issue's for me.