Voluntary Redundancy

[musicmaniax]

Last week all 3 Mdecs were given paperwork regarding whether people would be interested in taking voluntary redundancy.

We were told it's just an exercise to see how many would be interested but there has to be more in it. Why would they want individuals pay numbers etc.

They never mentioned if they would use the same formula for VR as last year's so nobody would know how much they were likely to receive so how could they even make a decision on VR with just a simple YES/NO question.


Is this to find out how much they would have to pay out to shut each MDEC.

[TrueBlueTerrier]

It may mean nothing they have these preference exercises in Operational Units just before a revision.

[baldrick]

Doesn't mean a lot. Supposedly it is to find out how many staff might take VR if it's offered, so they can work out how to deal with surplus staff. It isn't a commitment by anyone to actually take VR, and it's not a commitment by Royal Mail to offer it. We got one of these trawls almost every year at Mount Pleasant. A lot of people would say they were interested, and go on to ask for a quote. But once they got the quote they would decide not to take the VR. Only about 10% of those who asked for a quote actually took VR. Most just wanted to know how much they would get.
Until you actually sign to accept the quote offer, neither you or RM are committed to the VR.

Edit: If they are going to close down your MDEC or intend to drastically reduce staffing beyond normal wastage rates, they will probably bring in the 'Clear Choice' people to interview staff and try to pressure them to relocate or take VR. But they can't make you sign anything and you should refuse to sign anything until you've had time to think about your options, and decide what you want to do.

[Metalman]

Does anybody know how they work out how much an individual would receive through Voluntary Redundancy? I have heard so many different versions now and I'm totally confused.

[TrueBlueTerrier]

Does anybody know how they work out how much an individual would receive through Voluntary Redundancy? I have heard so many different versions now and I'm totally confused.

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[craven]

I was offered 13000 because by the time it would have come through i will be over 60, if you are over 60 it drops by about 3/4 got my quote two weeks ago looks like i'm staying.Already taking my pension.

[craven]

oopps forgot to mention 38 years service,some younger ones offered £40000-£47000.

[baldrick]

I was offered 13000 because by the time it would have come through i will be over 60, if you are over 60 it drops by about 3/4 got my quote two weeks ago looks like i'm staying.Already taking my pension.

That doesn't sound right. Shouldn't start decreasing until you are over 64. If you are over 60, taken your pension, and have over 20 years service you should get 104 weeks VR payment. I did.

[baldrick]

I was offered 13000 because by the time it would have come through i will be over 60, if you are over 60 it drops by about 3/4 got my quote two weeks ago looks like i'm staying.Already taking my pension.

That doesn't sound right. Shouldn't start decreasing until you are over 64. If you are over 60, taken your pension, and have over 20 years service you should get 104 weeks VR payment. I did.

The only reason I can think of why you would only get £13k (26 weeks VR?) is because you are still paying into an RM pension scheme.
Did you opt out of that new pension scheme they brought in this February?
If not and you are still paying into that, it would be the reason why you would get 26 weeks VR (+ a slightly enhanced additional pension) instead of 104 weeks VR payment.

[needadvice]

My manager was told by their manager that we should get a months pay for every year that you have worked there

[baldrick]

My manager was told by their manager that we should get a months pay for every year that you have worked there

He is wrong. Have a look at the link to the thread posted by tbt at post #5, which gives the formula for working out VR payments.
This is the VR ready reckoner. It's a bit difficult to read, but clicking on it will enlarge it.

[craven]

I was offered 13000 because by the time it would have come through i will be over 60, if you are over 60 it drops by about 3/4 got my quote two weeks ago looks like i'm staying.Already taking my pension.

That doesn't sound right. Shouldn't start decreasing until you are over 64. If you are over 60, taken your pension, and have over 20 years service you should get 104 weeks VR payment. I did.

The only reason I can think of why you would only get £13k (26 weeks VR?) is because you are still paying into an RM pension scheme.
Did you opt out of that new pension scheme they brought in this February?
If not and you are still paying into that, it would be the reason why you would get 26 weeks VR (+ a slightly enhanced additional pension) instead of 104 weeks VR payment.

Thanks baldrick yes you are correct I am still paying into the pension.

[baldrick]

Thanks baldrick yes you are correct I am still paying into the pension.

Unfortunately people who had already taken their main RM pension didn't realise that not opting out of that new additional pension would affect any VR payment .

[needadvice]

He is wrong. Have a look at the link to the thread posted by tbt at post #5, which gives the formula for working out VR payments.
This is the VR ready reckoner. It's a bit difficult to read, but clicking on it will enlarge it.

cheers for the chart but that gives me a different figure compared with the formula contained in the link by 'trueblueterriers' above which actually seems about right and very close to a month per year worked.

[baldrick]

He is wrong. Have a look at the link to the thread posted by tbt at post #5, which gives the formula for working out VR payments.
This is the VR ready reckoner. It's a bit difficult to read, but clicking on it will enlarge it.

cheers for the chart but that gives me a different figure compared with the formula contained in the link by 'trueblueterriers' above which actually seems about right and very close to a month per year worked.

It should be the same amount using the formula or the ready reckoner. The same formula is on the ready reckoner in the bottom right hand corner. It would probably be about one month for every year worked for MDEC staff as they will have less than 20 years service. But a lot of RM OPGs who take VR would have more than 20 years service, so will get more.

Edit: I think you can probably print the Ready Reckoner out at correct A4 size.