PENSION AND REDUNDANCY

[stodgy88]

IF I TAKE REDUNDANCY (24 YEARS SERVICE) COULD I AT SAME TIME TAKE LUMP SUM FROM PENSION , AND PENSION EARLY,IM 52 CHEERS

[gaza1968]

Sorry to disapoint you but no you must be 55 plus to recive your pension so you will get your VR and pension will be frozen until you reach 60
on your VR you it depends on what terms they offer you if its the full VR package it: first 10 years @ 3 weeks 10 years plus@ 4 weeks and after age 40 @1week per year so you should recive 10X3 14x4 1x12 = 98 weeks wages hope this helps

[stodgy88]

thanks,cant i take reduced pension from 55 and lumpsum, cheers for help

[baldrick]

If you were to take Termination by Mutual Agreement (50-54), the terms according to
the paper they sent us last month, were that you could take either (according to cost):

TMA1a
Compensation will be calculated as follows:

3 weeks average assessable pay for each year of service between 1-10; plus
4 weeks average assessable pay for each year of service fom 11 onwards; plus
2 weeks average assessable pay for each year of service between age 40-49

Subject to a maximum of 104 weeks pay (part years not included) plus
entitlement to apply for an actuarially reduced pension, subject to the rules of the Royal Mail Pension plan
OR to defer pension until age 60.

TMA1b

Immediate payment of a non-enhanced and non-reduced pension (and pension lump sum where applicable)
based on actual reckonable service.
There is no additional compensation paid.

[stodgy88]

thanks for reply ,makes things clearer-cheers

[stodgy88]

baldrick ,what is average assessable earnings,i am on 30 hours contract(last 2 years )but was on 40 hours for other 22 years cheers in advance.

[baldrick]

Redundancy compensation lump sum is based on the average assessable pensionable
pay over the previous 26 weeks prior to taking redundancy. This would be your
contractual pensionable weekly pay (30 hours in your case) plus any pensionable
allowances, such as shift allowance, ex-PHG allowance, or driving allowance.
I'm not sure, but I would think that the TMA lump sum would also be based on the
last 26 weeks.

[stodgy88]

thanks again

[baldrick]

From what I've heard from people in my office, if you take TMA1a the
pension is reduced, I think by 5% for every year before 60, so at 52
your pension would be actuarily reduced by 40%.
The people in my office who were offered it have decided not to accept,
preferring to wait until they reach 55 and get their full pension.
If it is on offer at your office, you could ask for a quote of the pension
and lump sum being offered, before making a decision as to whether
you want to accept or not.

[stodgy88]

THANKS AGAIN.

[kwikpost]

IF I TAKE REDUNDANCY (24 YEARS SERVICE) COULD I AT SAME TIME TAKE LUMP SUM FROM PENSION , AND PENSION EARLY,IM 52 CHEERS

the way I understand it to work is they first offer the vr to the 55 to 60 age group. then the 50 to 54's. and you lose 5% of your pension for every yr your have to go to reach 60.

[baldrick]

When a surplus of volunteers for VR would otherwise preclude release of any 50 to 54 year olds who
have been members of the pension scheme for more than 5 years on cost grounds ie where the costs
of VR would exceed the 2 years payback limit, then Termination by Mutual Agreement (TMA) will be
offered instead to allow these individuals to accept an early release.

A TMA is NOT an offer of VR but an agreed exit and therefore a Compromise Agreement is
required. Details of what this entails will be included if and when an Offer is made.

In cases where there is an undersubscription of interest in VR, then TMAs will not be made and
volunteers aged 50 to 54 will be allowed VR terms instead as detailed on the page above, providing the
need for reductions in staffing justifies this.

Employees leaving on TMA may have the opportunity to choose between Option TMA1a or Option TMA1b,
depending on whether payback within 2 years can be achieved. Option TMA1a always provides payback,
whereas Option TMA1b may not. Employees will only be offered a choice where both options cost in.

TMA1a

Compensation will be calculated as follows:

3 weeks average assessable pay for each year of service between 1-10; plus
4 weeks average assessable pay for each year of service from 11 onwards; plus
2 weeks average assessable pay for each year of service between age 40-49

Subject to a maximum of 104 weeks pay (part years not included) plus
entitlement to apply for an actuarially reduced pension, subject to the rules of the Royal Mail Pension plan
OR to defer pension until age 60.

TMA1b

Immediate payment of a non-enhanced and non-reduced pension (and pension lump sum where applicable)
based on actual reckonable service.
There is no additional compensation paid.

NOTES
1. *Assessable Pay: All those payments and allowances that are pensionable (except any lump sum
payments), including but not limited to, a payment under the Pay Protection policy, Buy Down payment or
bonus payment, whether pensionable or not) plus any Unconsolidated Permanent Additions to Pay (UPAP).

2. Individuals with less than 2 years service are not eligible for VR.

3. Employees age 64.5 years or over who have entered the 'Duty to Consider' process prior to normal retirement
are not eligible for VR.

MtSF2a Ready Reckoner V2.0

[vanman]

Be careful when it comes to what is on offer for VR.

First, at present EVR is currently allowable under government rules for those aged 50+. This will change to 55+ next year.

Secondly, TMA should only be an option in certain cases, such as where there are more volunteers for VR than there are redundancies.

Have a look at my posts in the following topics - it might help.

http://www.royalmailchat.co.uk/communit ... 55#p144445" onclick="window.open(this.href);return false;

http://www.royalmailchat.co.uk/communit ... 15&t=11902" onclick="window.open(this.href);return false;

The Golden Rule is always take advice from a CWU rep who understands the MTSF agreement

[stodgy88]

assessable pay does it include buy down payment,find note a bit confusing (not difficult) cheers

[postmanpat32]

hi i left the royal mail in1999 after 10 years service,i then moved and have not had any thing from royal mail pensions how do i contact them to check my pension also i am 53 can i now take a lump sum from pension or can i take it all now and finish pension thanks pat