11 Aug 2017, 10:41
11 Aug 2017, 10:56
13 Aug 2017, 08:34
13 Aug 2017, 15:24
TheStrangler wrote:Thanks for the links.
Can someone tell me what is the difference in the amount you are offered vr if you are , for example , 54 as opposed to age 55 (at which point you can take your pension).
An I right in saying you only get 6 months pay if you are age 55 or over? If so is that because you can access your pension and access a lump sum that way instead?
13 Aug 2017, 16:47
Two elements of the MTSF section of the Business Transformation Agreement of 2010 were “time limited” and subject to review. These were:
The suspension of a “cap” of two years pensionable pay on cost to the business of redundancy (which had the effect of enabling members of the Royal Mail Pension Plan aged over 55 to take a package including immediate payment of an enhanced pension).
An additional two years support and an increase in the cap on Excess Travel Expenses from £1,500 to £20,000 for those in the former Letters business whose travel costs exceeded £1,250 per year following redeployment.
These terms were originally due to cease on 31st March 2013 but were extended a number of times, most recently by the “Joint Statement: Balanced approach to growth, efficiency and incentives” which deferred the review until May 2015.
In addition to this, during 2014 HMRC changed its policy on taxability of buy down of hours payments, to make them reckonable for tax and National Insurance (NI). As part of the Joint Statement Royal Mail agreed to pay 50% of the cost of tax and NI, or provide the option of payment of buy down lump sum into pension, again reviewable in May 2015.
Voluntary Redundancy Cap
It has not been possible to persuade the business to further extend the suspension of the cap. With effect from 1st October 2015 the suspension will be lifted. This does not affect redundancy terms based on the multiplier but will limit the ability of members of the Royal Mail Pension Plan (RMPP) to receive immediate payment of enhanced pension to circumstances in which the total cost to the business does not exceed the equivalent of two year’s pensionable pay.
Where the combined redundancy and pension cost would exceed the equivalent of two years pensionable pay, cash compensation of 104 weeks pensionable pay will be offered instead.
If a redundancy exercise is already in progress and some employees have a last day of service before 1st October and some after, the current terms will apply throughout.