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If you get sacked, what happens to your pension ?

10 Dec 2019, 16:24

This was a response to the question back in 2009.
Under normal circumstances you keep whatever you've paid in but the RM portion is lost.

Does anyone know if this response is correct?

If you get sacked, what happens to your pension ?

10 Dec 2019, 17:27

No! Pension is Deferred till you reach at least 55.

If you get sacked, what happens to your pension ?

10 Dec 2019, 17:40

My understanding is that any form of dismissal /sack the company that you work fore are entitled to take back any pension contributions they have made to your pension, you only keep your contribution which you have payed in, this you claim at 55 or 60 retirement age. I am sure some eagle on here will put you straight. :cuppa

If you get sacked, what happens to your pension ?

10 Dec 2019, 17:48

I think it depends on the reason the person was sacked!

If it's something where they've gained financially such as stealing and using bank cards for example, then if they can't pay back what they've stolen, then their pensions have been reduced.
The postie in this article came to an arrangement with RM to do just that: https://www.echo-news.co.uk/news/178812 ... s-parcels/

But in this case, a 'thieving postie' kept his pensiuon because he resigned: https://www.express.co.uk/news/uk/80821 ... ps-pension

But for 'normal' sackings such as for too much sick leave, then as far as I know their pension would be deferred/preserved. That's been the case with a few that have been sacked at my DO.

If you get sacked, what happens to your pension ?

10 Dec 2019, 18:54

Thanks for the replies. Thought it was worth pointing out the situation on dismissal & loss of free shares;
Edited from ESO brochure.
If you leave Royal Mail for the following reasons, you may lose your Free Shares or have to pay income tax and National
Insurance on their value.
• You resign
• You are dismissed

If you leave Royal Mail for either of the reasons above, the following will apply.

If you leave within three years after being given the Free Shares, you will lose the shares.

If you leave between three and five years after being given the Free Shares, the Trustee will
take them out of the SIP and you can instruct the Employee Share Offers administrator,
Equiniti, either to sell all your shares or sell enough of the shares to cover any income tax
and National Insurance that are due and any costs (commission) relating to the sale of your
shares, and transfer the rest of the shares to you for you to continue to hold outside the SIP.

If you leave more than five years after being given the Free Shares, you may instruct the
Employee Share Offers administrator, Equiniti, either to sell the shares or transfer them to you
so you continue to hold them outside the SIP. You will not pay any income tax or National
Insurance on the value of the shares. If you sell your Free Shares, Equiniti will deduct any
costs (commission) relating to the sale of yourshares before sending you the money made
from selling them.

If you get sacked, what happens to your pension ?

10 Dec 2019, 19:04

[quote="rogersh"]Thanks for the replies. Thought it was worth pointing out the situation on dismissal & loss of shares;
Edited from ESO brochure.
If you leave Royal Mail for the following reasons, you may lose your Free Shares or have to pay income tax and National
Insurance on their value.
• You resign
• You are dismissed[/quote
I think there is and age exception if you are over sixty and retire within the five year time scale

If you get sacked, what happens to your pension ?

10 Dec 2019, 19:16

deltaforce wrote:I think there is and age exception if you are over sixty and retire within the five year time scale

Yes there is, but you don't necessarily have to be 60+ and retiring, you just need to be 60+ and resigning from RM. But whether the same applies if you're 60+ and get sacked, I'm not sure?

If you get sacked, what happens to your pension ?

10 Dec 2019, 20:27

rogersh wrote:Thanks for the replies. Thought it was worth pointing out the situation on dismissal & loss of free shares;
Edited from ESO brochure.
If you leave Royal Mail for the following reasons, you may lose your Free Shares or have to pay income tax and National
Insurance on their value.
• You resign
• You are dismissed

If you leave Royal Mail for either of the reasons above, the following will apply.

If you leave within three years after being given the Free Shares, you will lose the shares.

If you leave between three and five years after being given the Free Shares, the Trustee will
take them out of the SIP and you can instruct the Employee Share Offers administrator,
Equiniti, either to sell all your shares or sell enough of the shares to cover any income tax
and National Insurance that are due and any costs (commission) relating to the sale of your
shares, and transfer the rest of the shares to you for you to continue to hold outside the SIP.

If you leave more than five years after being given the Free Shares, you may instruct the
Employee Share Offers administrator, Equiniti, either to sell the shares or transfer them to you
so you continue to hold them outside the SIP. You will not pay any income tax or National
Insurance on the value of the shares. If you sell your Free Shares, Equiniti will deduct any
costs (commission) relating to the sale of yourshares before sending you the money made
from selling them.

Good luck roger :Very Happy :chuckle :chuckle :chuckle :chuckle :wave :wave

If you get sacked, what happens to your pension ?

10 Dec 2019, 21:41

maisymoo04 wrote:
rogersh wrote:Thanks for the replies. Thought it was worth pointing out the situation on dismissal & loss of free shares;
Edited from ESO brochure.
If you leave Royal Mail for the following reasons, you may lose your Free Shares or have to pay income tax and National
Insurance on their value.
• You resign
• You are dismissed

If you leave Royal Mail for either of the reasons above, the following will apply.

If you leave within three years after being given the Free Shares, you will lose the shares.

If you leave between three and five years after being given the Free Shares, the Trustee will
take them out of the SIP and you can instruct the Employee Share Offers administrator,
Equiniti, either to sell all your shares or sell enough of the shares to cover any income tax
and National Insurance that are due and any costs (commission) relating to the sale of your
shares, and transfer the rest of the shares to you for you to continue to hold outside the SIP.

If you leave more than five years after being given the Free Shares, you may instruct the
Employee Share Offers administrator, Equiniti, either to sell the shares or transfer them to you
so you continue to hold them outside the SIP. You will not pay any income tax or National
Insurance on the value of the shares. If you sell your Free Shares, Equiniti will deduct any
costs (commission) relating to the sale of yourshares before sending you the money made
from selling them.

Good luck roger :Very Happy :chuckle :chuckle :chuckle :chuckle :wave :wave


maisymoo04 - You have mis-understood my reason for asking the question. I said to a colleague today that I thought someone who is dismissed loses their pension. My colleague was sceptical, so I thought I would ask on this forum. As you can see there are different answers.

But you never know - I have put myself up for target a few times!

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