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Whether to apply for IHR etc

12 Feb 2020, 13:19

Hi guys,
I'm recovering from a major spinal operation, and was suddenly approached by delivery management this week, asking whether I want to consider applying for IHR, as apparently "some funds have been found/released", which were not previously available. That seems odd, as I would have thought that an IHR discussion could happen at any given time, according to individual circumstances.
I didn't realise that if you do apply, you can't do it purely as an exercise to determine what would be offered, but you instead have to go through the Occupational Health referral process of obtaining detailed medical and specialists reports, and OH (Atos as was) decide whether it's a lump sum or a pension. If a pension, I understand that's nothing apparently to do with your own pension scheme. I told the manager it's something I would at least explore, but obviously it seems I can't do that, as it would commit me with no going back. I believe there's a formula of something like 34 weeks tax free pay plus 13 weeks basic taxable and any remaining holiday for the lump sum decision, or the pension decision providing about 75% basic pay for 3 years.
I'm 60 this year in DBCBS C and Bonus plan CSP with 20 years service. I am currently exploring my financial circumstances, and have just booked a pension advice appointment with "Pension Wise" government advice service.
Could anyone kindly offer (obviously no implication) advice, comment, or confirm any accurate or rectify any incorrect assumptions I have made, and perhaps say what you'd probably do if you were me? I should add that reluctantly continuing in a very difficult delivery environment for another five years has been my aim.
Finally, I have assumed that VR is pretty much a non starter now and in the near future, and that transfers out of delivery, say into mail centres or hubs are rare.
Thanks in anticipation.

Whether to apply for IHR etc

18 Feb 2020, 07:13


This is all from memory so anyone feel free to correct me.

First off, there are two types of IHR, voluntary and non-voluntary.

IHR is technically a form of dismissal, although you will be classed as a good leaver, the business is basically deciding that paying you off is cheaper than waiting for you to get better. I'd imagine with VIHR you could back out if you changed your mind, and the sums are the same for both I believe.

Again, from memory, I believe it's 6 months salary, plus 13 weeks pay in lieu of notice, plus your annual leave. You also get your shares tax free because you're a good leaver (If you've got any). So basically 9 months salary. I'm not sure about the pension at all I'm afraid, and you may be right with your 34 weeks.

Personally, I wouldn't rush into a decision, seeking some proper advice is a good thing. At the moment they might try and push you into accepting it. (the business wants a headcount reduction).

Remember, the business has a duty of care towards you, at some point IHR might be forced upon you, but only if the business has tried every possible way to accommodate you. Take your time, don't feel rushed or pressured into a quick decision because they've suddenly found a magic pot of money.

Whether to apply for IHR etc

18 Feb 2020, 08:15

I believe it is 34 weeks plus PILON which I thought was 12 weeks and not 13. 46 weeks total.

Whether to apply for IHR etc

19 Feb 2020, 16:09

Many thanks for the replies guys. Excellent advice about not rushing int anything, but I think undoubtedly they're trying to cut out what they consider to be "dead wood". Most CEO's like Rico Back clearly thrive on this.
Also, something like £20k these days is NOT a lot of money. It might build you say a decent conservatory for example, then you're totally relying on a fairly small pension for, in my case, about seven years before state pension entitlements. I guess suddenly you're thinking you have to watch absolutely every penny.

No Rico, I may only be an insignificant number and an irritation to you, but consider how you'll be planning the culmination of your career - all sorts of share options and other multi million pound pay package investments coming to fruition with a monstrous 2nd golden handshake!

Whether to apply for IHR etc

20 Feb 2020, 16:41

Exactly. People get excited when they think they will have 20k in the bank, but without a regular income, it won't last long.

Seen this happen so many times in my office, they're splashing the cash on Facebook for the next few weeks, then selling anything they can 6 months later.

Tractors numbers sound correct to me.

Whether to apply for IHR etc

22 Feb 2020, 14:45

On a slightly different note, can we simply ask for VR?

There's possible repick/revision in my office apparently we need to save hours.

I can think of one way to get rid of 38 hours per week.

Age 34 with 16 years service if that makes a difference.

Whether to apply for IHR etc

23 Feb 2020, 10:08

There's no harm in asking, but VR in RM is usually done on a seniority basis. I'm guessing they'll probably be people in your office who've been there longer than you, so they'll get first refusal.

Whether to apply for IHR etc

23 Feb 2020, 11:19

RobertT wrote:There's no harm in asking, but VR in RM is usually done on a seniority basis. I'm guessing they'll probably be people in your office who've been there longer than you, so they'll get first refusal.

Thanks - im not getting my hopes up.

Theres at least 3 people in the office within 12 months of state pension age so possibly no VR at all.

Fingers crossed.

Whether to apply for IHR etc

23 Feb 2020, 12:03

There's no age limit on getting made redundant, nor is there any age limit on how long you can work for.
Many people do carry on working beyond state pension age.

At 34 with 16 years service, the ready reckoner says you'll get 52.5 weeks pay if you were lucky enough to get VR.

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