How does a buy down work.

[kevo35]

Im intersted in having a buy down and dont want to speak to my screw about it, but want to cut my hours a bit. Any help greatly appreciated.

[fishtank]

■ Appendix 4
Buy Down (hours) Policy
This document forms part of the Managing the Surplus Framework- Administrative and Operational Grades and should be read in the context of the Framework as a whole and all the documents which constitute it. Information for line managers on the deployment of the Framework is set out in the Guide to Deployment of Managing the Surplus Framework.
1. Purpose
The aim of this policy is to provide clear direction on how voluntary reduction in hours will be managed throughout Royal Mail.
2. Audience
This policy applies to all Administrative and Operational Grades.
3. Accountability
Personnel / Resources Directors of the Business Units will retain overall accountability throughout the process and for the application of the policy.

5. Policy
5.1 An employee may be permitted to reduce his/her hours (“Buy Down”) where to do so would facilitate the placement of Surplus Employees.
5.2 All such Buy Downs will be on a voluntary basis and at the discretion of Royal Mail.
5.3 In consideration for agreeing to such reduction in hours, the employee will be paid compensation (“the Compensation Payment”).

5.4 The Compensation Payment will be an amount equivalent to the compensation otherwise payable to the employee in accordance with
the Voluntary Redundancy Terms multiplied by A/B where
A = the employee’s contracted hours immediately prior to the Buy Down lesst he employee’s contracted hours immediately following the Buy Down, and
B = the employee’s contracted hours immediately prior to the Buy Down.
5.5 The Compensation Payment will be paid to the employee with salary within 2 months following the Buy Down ..The first £30,000 will usually be paid without deduction for tax and employee National Insurance Contributions.
5.6 The relevant Business Unit will issue the employee with a new contract of employment setting out the employee’s new terms and conditions of employment following the Buy Down.
5.7 If the employee is a member of the Royal Mail Pension Plan membership of the Plan, will continue uninterrupted albeit on pro rata part time contributions and accrual of benefits, subject to the Rules and Trust Deed relating to the Plan.
5.8 Agreement to the Buy Down and receipt of the Compensation Payment will be subject to the employee’s agreement that,

a) upon termination of his/her employment, except by reason of redundancy or on increasing working hours or returning to full time work on a permanent basis,during the period of two years immediately following the Buy Down (“the Compensation Period”), he/she will refund a proportion of the Compensation Payment to Royal Mail equivalent to the unexpired portion of the Compensation Period; and
b) any monies owing in this respect may be deducted from his/her wages/salary or any other payment due to be made from Royal Mail to him/her upon the termination of his/her employmentincluding any payment in respect of Voluntary Redundancy ( Standard Form 1.4.A contains a pro-forma).
5.9 Any hours worked in excess of the contracted hours, where the employee is in a grade that attracts overtime rates, will be at the flat hourly rate unless the total number of hours worked exceed what would constitute the normal full time hours. Overtime, paid in excess of the full time hours, will then be at the appropriate premium rate.