voluntary redundancy

[Judgee]

If you've paid off your mortgage and will be able to take a reasonable weekly pension sum then get out as soon as you can. You can always get a part time job to boost your wages til the state pension kicks in.

One thing for certain with the Royal Mail, the situation for it's workers only ever get worse, it never gets better.

In the words of Smelly cat lady "Every postie I have seen that has left without exception looks happier, healthier and more relaxed." I too have only ever seen happy ex-posties. You have done your time and suffered long enough, treat yourself to a better life you have earned it!

[andy2007]

It will really depend on what other types of work you're qualified for. In most sectors, there's very few jobs around. Although if you have good enough qualifications, then you might be able to find other work. But it's a risky time to be without a job for everyone at the moment. I'd think long and hard, before taking VR at the moment. Unless of course, you already have something else lined up.

[easter bunny]

I wish people would get this right.... ONLY the pension paid into after 2008 (career average ) is payable at 65, and 5% is deducted for early payment... All pension (final salary) that staff paid into before 2010 is STILL payable at 60....with no deduction....

[Darren Bent]

I would take the money and do something part time for fun and earn money. I mean if you paid off mortgages, credit cards, debts, your cost of living will be lower. But it is depend on your lifestyle and location ie will you be able to get a nice part time job somewhere or not.

[baldrick]

I wish people would get this right.... ONLY the pension paid into after 2008 (career average ) is payable at 65, and 5% is deducted for early payment... All pension (final salary) that staff paid into before 2008 is STILL payable at 60....with no deduction....

Are you sure about that? A couple of guys at my MC who enquired about VR say they were told that
their pensions would be frozen till they are 65 (after 1 April this year), and they could only take pension
accrued up to April 2008 at 60 if they are still employed by RM.

[easter bunny]

The reduction applied to your pension for early payment will depend on how old you are when you retire and the proportion of your benefits (before reduction) relating to Reckonable Service before 1 April 2010, as follows:

◦Your pension and lump sum for Reckonable Service up to and including 31 March 2010 will be paid without reduction if you retire on or after your 60th birthday.
◦If you retire before age 60, the part of your pension and lump sum relating to your Reckonable Service up to and including 31 March 2010 will be reduced by a factor (calculated by the Actuary) related to the number of years (and part years) between your actual retirement date and your 60th birthday.
◦All of your pension and lump sum relating to Reckonable Service after 31 March 2010 will be reduced if you retire before age 65 by a factor (calculated by the Actuary) related to the number of years (and part years) between your actual retirement date and your 65th birthday.
◦Pension and lump sum relating to Reckonable Service after 31 March 2010 will be paid without reduction if you retire on or after your 65th birthday

[baldrick]

◦If you retire before age 60, the part of your pension and lump sum relating to your Reckonable Service up to and including 31 March 2010 will be reduced by a factor (calculated by the Actuary) related to the number of years (and part years) between your actual retirement date and your 60th birthday.
◦All of your pension and lump sum relating to Reckonable Service after 31 March 2010 will be reduced if you retire before age 65 by a factor (calculated by the Actuary) related to the number of years (and part years) between your actual retirement date and your 65th birthday.

So doesn't that mean that both your pension before 1 April 2010, and after that date would be actuarily reduced if
you retire before 60?
And this is about retirement, not redundancy. Does it apply to VR?

[easter bunny]

No. Only the pension paid in after April 2010 is reduced for early payment before 65, unless its IHR or EVR...

[baldrick]

Sorry. I'm still not grasping this. My brain (not great at the best of times) must be declining with age.
As I understand it, you can take your pension accrued up to April 2008, at 60, without reduction, if you are still employed by RM. If you take it before 60, I thought it was still actuarially reduced.
If you leave RM, either by Voluntary Redundancy, IHR (without pension), dismissal, or resignation, I thought that after
1 April 2010, your pension is frozen until 65, and actuarially reduced (Including the pension accrued before April 2008)
if you take it before 65.
Are you saying that if you leave RM before 65, you can still take pension accrued before April 2008, without Actuarial reduction?

[easter bunny]

You can retire at 60, if you working for Royal Mail or whoever..Your pension will be reduced for early payment at 5% a year but only the pension paid in AFTER the Career defined pension started ( I thought it was 2008...but it is 2010 according to the RMPP website ) ..Whatever you paid in before that will not be reduced..

[Thorby Bislam]

Hi bunny,
you seem to know what you're talking about. Let me see If I've got this right.

To take a hypothetical situation; if a person gets IHR or VR now at age 55, he/she could take his/her pension accrued up to March 2010 without reduction but the pension earned from then to present date would be reduced by 5% for each year up to when he/she would be 65, ie: 10 years = 50% reduction.

If the same person takes IHR/VR in 5 years time at age 60, the block of pension from March 2010 would suffer a 25% reduction ?

[easter bunny]

IHR and VR are 2 different outcomes.. If you get EVR and the business gives you the extra 6 and quarter years ( i do think thats the max ) , you will get no deductions off the final salary pension (pre 2010 ) but you will get a deduction of near 20 per cent off the other...

IHR with pension , means do have no deductions at all and 55 doesnt come into it....

[Thorby Bislam]

Ah right, I think I get it. Is this right ?
VR at 55 means no reductions on the pre 2010. Rest is reduced though. But at 5% per year. Is that ongoing ? ie; 10% for 2 years, 15% for 3 etc up to a total of 50% for 10 years ?

What about IHR with lump sum in same circumstances ?

[richiebland]

I have worked for RM for 21 years, still only 42 years young and if VR comes my way I will be outta that place like a bullet. The last 3-4 years have been arming myself by doing home improvements in spare time as well as going to tech. I would advise people to get something else ready so they can grab VR while they can and get out of that sh*t hole.... Have a nice day......

[dvbuk55]

i am a an ordinary postal grade 56 years old with 25 years service .
i have been offered voluntary redundancy .
i would very much appreciate any comments thoughts opinions general input etc from anyone as to whether i should accept the offer or not .
especially with the possibility of privatisation looming ie working harder for less maybe pay off as well.
also from october seniority as well as age is a factor in redundancy preference/bumping order.
finally is a new eec rule coming in which says workers made redundant have to get 12 months pay instead of 6 months as at present or does this only apply to compulsory redundancies ?
for any replies to my above queries i would be very thankful from futurethinker

Before you make any decisions have a word with a financial adviser from your bank, the consultation is free and he/she will advise you on where best your interests lay. At the moment having any savings is not a big earner but there are ways to maximise any savings you have. Property was always a reasonable bet but at the moment the market is really unstable and so is the financial markets.

It really boils down to what you think is your best option and if you can draw your pension but a bird in the hand is worth two in a bush. The amount quoted would be sufficient to do a number of things and may well focus your mind on other pursuits. Good luck!