New deal VR,EVR terms???

[tony]

Hi, just like almost everyone else I am "SLIGHTLY dissatisfied" about the fact that we will be getting a pay cut, more work, later Saturday finishes and general erosion to working conditions with the so called DEAL ??? Vote No!

However I think I may have noticed something that may have been overlooked by most. Someone please correct me if I am wrong but looking at the terms for VR etc it seems as though it would mean for the majority of us 1 weeks pay for 1 years work?? If so that sounds awfully similar to the conditions of compulsary redundancy? I had always been informed it was nearer to 1 month per years work, is this another downgrading of conditions??

Can someone shed some light please?

[baldrick]

The way I read it is that MTSF VR/EVR terms are the same as now, until April 2013.
Where do you get this 1 week pay for every year's service?

[opgpat]

I don't think it's 1month for 1year. Last time they sent out literature I'm sure it was 1 to 1.5weeks dependant on length of service.

[Himaggen]

Statutory Redundancy Pay is currently, (for those above the age of 41), a week and a half’s pay, at the time you were made redundant, for each complete year of employment. (the maximum gross weekly pay is considered to be £380)

[baldrick]

Current VR Compensation terms-

0.5 weeks assessable pay for each full year of service under the age of 22; plus
1.0 weeks assessable pay for each full year of service from age 22 to age 40; plus
1.5 weeks assessable pay for each full year of service over the age of 41
added together, the total from the above is then multiplied by 3.75 to give total No of week's entitlement.

Minimum entitlement = 26 weeks compensation
Maximum entitlement = 104 weeks compensation

[tony]

Thanks for clearing that up for me, i did not know the old agreement and was informed by someone second hand

[opgpat]

Current VR Compensation terms-

0.5 weeks assessable pay for each full year of service under the age of 22; plus
1.0 weeks assessable pay for each full year of service from age 22 to age 40; plus
1.5 weeks assessable pay for each full year of service over the age of 41
added together, the total from the above is then multiplied by 3.75 to give total No of week's entitlement.

Minimum entitlement = 26 weeks compensation
Maximum entitlement = 104 weeks compensation

Min is 26weeks?? So been in the job 2 years and you will get 26wks pay off? I don't think all the info is here.

[naughton]

would the new pay rates be used(if excepted) or the old -cheers

[crusher]

I always thought the current VR goes on your pensionable pay too. Basic and assigned pensionable allowances?

[End of the road]

Don't forget that you can no longer draw any pension if you are under 55 from April 5th 2010 and also the VR goes upto 60+ and not the current 55+

[baldrick]

would the new pay rates be used(if excepted) or the old -cheers

As I understand it VR payments are based on pensionable pay (plus pensionable allowances)
paid over the 26 weeks prior to the VR being taken. So the new pay rates would only count fully
for VR calculation in 6 months time.

EVR payments are based on the pensionable pay (and allowances) are based on the best 12
month period in the last 3 years prior to EVR. So new pay rates would count fully for pension
calculations after 12 months.

But you also need to bear in mind that if you receive Early Attendance shift allowance in Deliveries which is currently pensionable, you would lose more than you gain from the 2% pay rise, as the supplement is about £12, while the new D2D
payment is not pensionable, so would not count towards VR or EVR.

Likewise in MCs, as I understand it any PBS/CSI supplement (which is pensionable) will be reduced by £8, and replaced by
the new non-pensionable £8 supplement, again reducing any VR or EVR payment.

[baldrick]

Current VR Compensation terms-

0.5 weeks assessable pay for each full year of service under the age of 22; plus
1.0 weeks assessable pay for each full year of service from age 22 to age 40; plus
1.5 weeks assessable pay for each full year of service over the age of 41
added together, the total from the above is then multiplied by 3.75 to give total No of week's entitlement.

Minimum entitlement = 26 weeks compensation
Maximum entitlement = 104 weeks compensation

Min is 26weeks?? So been in the job 2 years and you will get 26wks pay off? I don't think all the info is here.

These are the figures in the VR Compensation Ready Reckoner sent to everyone in my MC by RM HR, last year
(MTSF2a Ready Reckoner V2.0).
It does include a graph which shows that the minimum payment, for which you need a minimum of 2 years service is 26 weeks pay.

[baldrick]

I always thought the current VR goes on your pensionable pay too. Basic and assigned pensionable allowances?

Yes it is based on basic pensionable pay plus pensionable allowances over the 26 weeks prior to taking VR.

[naughton]

what would be the difference between someone aged 50-54 taking EVR and someone over 55 -i am 53 and would get maximum allowed-2years pay. cheers

[baldrick]

what would be the difference between someone aged 50-54 taking EVR and someone over 55 -i am 53 and would get maximum allowed-2years pay. cheers

The agreement wouldn'r make any difference to your VR terms.
If you are 53 and have at least 22 years service you would still get the maximum 104 weeks Voluntary Redundancy payment.

But to get EVR, ie your enhanced pension (and pension lump sum where applicable) plus 26 weeks Redundancy compensation, you would have to wait until you are 60 after 1 April.

Though you might get TMA (Termination by Mutual Agreement) between 55-59 - with that you get either:
TMA1a - A VR payment of up to 104 weeks plus an actuarially reduced pension or deferment of pension until age 60.
or
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.