Buydown of Hours Options Query

[jake7]

There seems to be a lot of talk around VR and Buydown of hours this last couple of weeks, so I thought I would get a rough calculation from my manager, who used a Ready Reckoner app on his PC to find the all important figures.
In my case I'm Full Time and want to buy down to 20 hours per week, I've Just under 24 years service and I am aged 44.

The calculation gives 2 options:
Option 1 Lump Sum (Taxable) £20,441.08 or
Option 2 EVC £23,019.23

My question is what is EVC and would this figure be taxable. My line manager did not know, nor did my union rep.
Anyone here know?

[beanmuncha]

I would ask your Manager to find out as he is supposed to know.
Your rep most likely will come back to you when he has found out.
Sorry but i don't know.

[jake7]

Thanks for your reply, just thought somebody here had knowledge of this abbreviation and all that it entailed.
Asking my manager is sometimes not that productive, he's a good soul but memory like a goldfish!
I've now sent in my initial request about BuyDown so hopefully I will get a more detailed breakdown of figures and options.

[clashcityrocker]

I am fairly certain that buy downs are taxable.

[jessicarabbit]

Evc goes straight into pension AFAIK

[jake7]

Thanks Jessica, that sounds right. Pity that the lump sum is now taxable, it really makes the Buy Down much less appealing.

[swpostie]

AVC goes into your pension.

Don't know what EVC is - are you sure it's not EVR?

[raged1999]

Buy down IS taxable, but Royal Mail will pay half of the tax bill.

[jake7]

Thanks for all that replied. Yes the non taxable figure is titled EVC, anyway I've sent in the official form to enquire about Buy Down and VR so when I receive the reply hopefully I can answer my own query.
I'll post back here so others know in the future, but I'm guessing Jessica's answer is correct.