ANNOUNCEMENT : ROYAL MAIL EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (UPDATED 2017)... HERE


VR formula

11 Aug 2017, 10:41

Hi , can someone please provide the link to how to work out vr.
I believe it's some sort of table with age/service? I seem to remember you get so much extra for every year over the age of 40?
Thanks


VR formula

11 Aug 2017, 10:56

Have a look at this: viewtopic.php?f=36&t=74407

RM are looking at reducing VR payments aswell as everything else! So don't be surprised if things change.

You can work out statutory redundancy pay here: https://www.gov.uk/redundant-your-rights/redundancy-pay which is the minimum they have to offer.

VR formula

13 Aug 2017, 08:34

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?

VR formula

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?

If you are 55 or over, and take your pension on EVR (Early Voluntary Retirement) leaving RM, in addition to your enhanced pension and any lump sum due, you would get 26 weeks redundancy payment.
If you are under 55, or if you are over 55 and have already taken your pension, while remaining employed, and you are not paying into any RM pension scheme, you would get the VR payment of 26 weeks - 104 weeks, depending on length of service, as set out in the VR Calculator.
At the moment anyway. RM want to reduce VR/EVR payments.

VR formula

13 Aug 2017, 16:47

However under MTSF2, EVR is only offered if the total cost to RM is less than 2 years pay. In which case there would be no enhanced pension and a lump sum of 104 weeks pay:

Background

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.

VR formula

30 Aug 2017, 22:11

Who can I ask about Voluntary Redundancy ? I got offered an estimated figure 2 years ago in writing but declined.
Don't really want to ask my DOM as hes not very approachable to be honest.
I am 54 years old with over 27 years service.

VR formula

31 Aug 2017, 06:19

leedsunited wrote:Who can I ask about Voluntary Redundancy ? I got offered an estimated figure 2 years ago in writing but declined.

If VR was available at your DO now it would be offered to everyone by letter. The offer you received 2 years ago would not still be open. Those VR slots were presumably taken up by others.

VR formula

31 Aug 2017, 15:40

VR is usually only available on an office basis following a revision or major change requiring a loss of jobs. If that is not the case in your office, then VR is unlikely to be offered.

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