VR offered is lower than expected.

[Spedley]

I'm asking on behalf of a colleague who has applied for VR. He has decades of service and turned 55 last year but RM only offered a small amount.
If he'd taken his pension last year he would have been offered the maxmium £43k (ish) but from what I understand RM want to include the lump sum into his offer and only pay him £12k. I also believe that this would reduce his pension to about £90/week which is much less than he should receive.

I'm not certain of the ins and outs but someone may be able to understand exactly what is happening and explain it or suggest a way around it. He has spoken to the union (area rep) but he said "tough, it isn't our job to give you financial advice" (not a quote).

Can anyone shed more light on this?

[P13]

I think if you are over 55 you only get 26 weeks VR plus your pension

[taxi4leighton]

he would get his pension made up to his 60th birthday
and lump sm straight away
plus 6 months
good deal

[taxi4leighton]

thats extra 5 years pension
good deal if you have long service

[deltaforce]

He can take it at 55 regardless

[baldrick]

I also believe that this would reduce his pension to about £90/week which is much less than he should receive.?

If he takes EVR after 55 he will get the pension already accrued, slightly enhanced. It would not be reduced if he is taking EVR.

[baldrick]

He can take it at 55 regardless

But unless he is taking EVR the pension would be reduced by 5% for every year early, so he would lose 25%.
With EVR the pension accrued is paid in full, and slightly enhanced.

[Chilli pepper]

Spedley I have just taken my evr I too am 57 and took my NRA 60 at 55 but still paid into the workplace pension because of this I only offered 6 months pay plus an enhanced pension of 2,700 py ,now here's the thing if you opt out of the pension you are paying they will pay you 2 years pay but your pension will be either frozen ,or taken at a lower rate ,for me it was a no brainier but everybody's circumstances are different .It doesn't suprise my with the unions attitude I have had no help what so ever and had to do everything myself and registered my disgust with Fury but as expected got no response hope this helps if you need any more help let me know .

[2old4this]

So if your betwween 55 and 60 can you freeze yor pension till you reach 60 and take 2yrs pay, or do you have to take your pension and only get 6months money,

[Chilli pepper]

If you are still in nra60 pension and 55 or over with 20 yrs service you should get 2 yrs money if you have taken your pension you will be offered 6 months pay unless you opt out of pension your pension then can be frozen or taken at a reduced rate ,you would have to contact p o pension for sums .

[2old4this]

If you are still in nra60 pension and 55 or over with 20 yrs service you should get 2 yrs money if you have taken your pension you will be offered 6 months pay unless you opt out of pension your pension then can be frozen or taken at a reduced rate ,you would have to contact p o pension for sums .

yes i'm still paying into the pension, to be honest i've never really seen my pension as anything other then what it is supposed to be, for when i retire.

Not really sure whats going on right now, our manager had me in a few weeks back and said i would be offered the VR 37 with years service, then it was all off now he says its on the cards again. If i do get it i would much rather just freeze my pension till i'm 60.