EVR and buydown

[Darren Bent]

So do this means for someone over 41 (with 9 years full time) will get

1.5 weeks’ Pay for each full year of service where age during year is 41+ and multiplied by 3.75

(so number of year X 1.5 x 3.75) + (26 weeks) x 372.12 (Basic pay) = 76.625 x 372.12 = 28,514 pounds roughly. (am I right for 9 years full time) Just checking.

[k979aaa]

29 Years in RM. I was offered buydown, (39 hours to 24 hours) last week. £16,500! Still thinking it over - struggling to decide about pension. Stay in, pay less in and get less back - Raise payments to stay in line with full-timer - Leave pension plan altogether, pension will be frozen but still based on fulltime hours, although I would obviously need to get a private pension plan.
Have been told that I am border line ill health retirement, so cannot see myself in Royal Mail in two years - so with IHR based on p/t hours + £16.500 buydown would probably still get near to the max £18000 payment for IHR.
Any advice gratefully received.

You said it yourself IHR only difference between part time full time is indoor work but to get the buydown you would need to work the 2 years is it worth it and can you last can you transfer into indoor work or mail centre.

[stokes11eg]

29 Years in RM. I was offered buydown, (39 hours to 24 hours) last week. £16,500! Still thinking it over - struggling to decide about pension. Stay in, pay less in and get less back - Raise payments to stay in line with full-timer - Leave pension plan altogether, pension will be frozen but still based on fulltime hours, although I would obviously need to get a private pension plan.
Have been told that I am border line ill health retirement, so cannot see myself in Royal Mail in two years - so with IHR based on p/t hours + £16.500 buydown would probably still get near to the max £18000 payment for IHR.
Any advice gratefully received.

You said it yourself IHR only difference between part time full time is indoor work but to get the buydown you would need to work the 2 years is it worth it and can you last can you transfer into indoor work or mail centre.

Tricky. But sometimes a bird in the hand, you could look to investing the money towards your pension.

[baldrick]

So do this means for someone over 41 (with 9 years full time) will get

1.5 weeks’ Pay for each full year of service where age during year is 41+ and multiplied by 3.75

(so number of year X 1.5 x 3.75) + (26 weeks) x 372.12 (Basic pay) = 76.625 x 372.12 = 28,514 pounds roughly. (am I right for 9 years full time) Just checking.

Darren you would not get an additional 26 weeks VR payment. That is paid if you are taking Early Voluntary Retirement, ie taking your pension and redundancy. You would need to be over 55 to get that.

According to the VR Compensation Ready Reckoner (2010) I was sent, at 41 years old with 9 years service you would get 33.75 weeks Voluntary Redundancy payment.

If your pensionable pay over the previous 26 weeks was £372.12, your VR payment would be £372.12 x 33.75 = £12,559.05

[barrowc]

So do this means for someone over 41 (with 9 years full time) will get

1.5 weeks’ Pay for each full year of service where age during year is 41+ and multiplied by 3.75

(so number of year X 1.5 x 3.75) + (26 weeks) x 372.12 (Basic pay) = 76.625 x 372.12 = 28,514 pounds roughly. (am I right for 9 years full time) Just checking.

That looks wrong to me.

If you are 41 on the day you are made redundant then you don't have any full years where you are 41 or older so each year only gets you one week in the statutory calculation = 9 weeks total (if you had been 42 then you would have had 8 years @ 1 week and 1 year @ 1.5 weeks and so on.) Combined with the 3.75 multiplier in the MTSF agreement, you would get 33.75 weeks by my reckoning. This tallies with the ready reckoner on page 15 of http://www.cwukentinvicta.org/resources ... _Down_.pdf (as linked to by fishtank earlier) and also with the SRP calculator at https://www.gov.uk/calculate-your-redun ... 1/9/372.12

Not sure where the +26 weeks part comes from. 26 weeks is the minimum you can get but that doesn't mean everyone gets an extra 26 weeks added on, unfortunately.

You might have other pensionable elements of pay beyond the basic pay as well

[baldrick]

EVR Ready Reckoner 2010 (click on it to enlarge)