EVR / Pension

[Red Robbo]

I don't know if this is the correct forum but a member in our office who is aged 61 applied for EVR however the quote given to her was only 6 months pay and some compensation, I know she is drawing her part of her pension but still contributing to the CARE Scheme, is this correct ?

[vanman]

Yes it is right as she is still in the pension scheme and continues to get the 6 months pay and enhanced pension option.

MTSF says:

2.4.3 MEMBERS OF THE PLAN WHO HAVE TAKEN "FLEXIBLE RETIREMENT" ON
OR AFTER 1 APRIL 2010

From 1 April 2010, members of the Plan have the option to take NRA 60 pension benefits (i.e. benefits earned up to 31 March 2010), to remain in service and earn more pension benefits payable at age 65 (NRA 65 benefits). Members who take flexible retirement with NRA 60 benefits will continue to have the pension and compensation options set out at 2.4.1 and 2.4.2 above. All service with the Company will count for this purpose even if members have taken pension in respect of service before 1 April 2010.

Members who take NRA 65 benefits will be deemed to have opted out of the Plan and will receive compensation only as set out in at 2.1 above.

In layman's terms this means that you get 6 months pay and your pension is enhanced by 37.5 (3/8ths) of the time left till age 65. In this case 37.5% of 4 years is 1.5 years. So she will get her CARE pension paid immediately, without penalty and it will be increased by these extra years.

If she had taken all her pension benefits, i.e. the age 60 and age 65, she would get the other VR compensation payments based on so many weeks for so many years service, up to the maximum of two years pay.

[Red Robbo]

Thank you Vanman, thanks for explaining in layman's terms, I will tell her the news.

[Everitt]

The best option is to ask to come out of the current pension and once this has happened after a couple of months reapply for vr and then she will receive the vr amount. My colleague was quoted 6 months also. She came out of pension and is now entitled to over 42k. Hope this helps

[Red Robbo]

The best option is to ask to come out of the current pension and once this has happened after a couple of months reapply for vr and then she will receive the vr amount. My colleague was quoted 6 months also. She came out of pension and is now entitled to over 42k. Hope this helps

Cheers Everitt, that's even better news.

[stodgy88]

hello, i took my pension early and came out of the one paid out at 60,i didnt rejoin until recently when the new work place pension came in ,how would i stand if i applied for EVR-thanks in advance

[barrowc]

That's a good question. As far as I know, the MTSF agreement hasn't been updated since 2010 - well before the new auto-enrolment workplace pensions came in.

I believe that auto-enrolment puts you in the Royal Mail Defined Contribution Plan - see https://www.myroyalmail.com/news/nation ... -enrolment. As a result, I think that you wouldn't get any pension enhancement on redundancy and would just get the normal compensation amount (i.e. statutory redundancy x 3.75)

Seek advice from the union to be sure about this

[stodgy88]

thanks for reply.

[stodgy88]

Is the statutory redundancy payment capped at 2 years pay ,as mine works out at 140 weeks,and does it go on your basic pay at the time of offer.

[barrowc]

From the MTSF section 2.1 - "Compensation will be based on Aggregate Service and will be subject to a maximum of two years' Pay"

Redundancy payments are based on your pay at the time you take redundancy

[stodgy88]

thanks,thought that was the case.

[baldrick]

From the MTSF section 2.1 - "Compensation will be based on Aggregate Service and will be subject to a maximum of two years' Pay"

Redundancy payments are based on your pay at the time you take redundancy

To be accurate VR payment is based on your average pensionable pay over the 26 weeks before the date of your VR.

[Red Robbo]

From the MTSF section 2.1 - "Compensation will be based on Aggregate Service and will be subject to a maximum of two years' Pay"

Redundancy payments are based on your pay at the time you take redundancy

To be accurate VR payment is based on your average pensionable pay over the 26 weeks before the date of your VR.

Cheers, Baldrick, my mate works in Gloucester MC on earlies and was asked to work on nights since the beginning of October, with your info I will tell him he will get more VR than he expected, he finishes in March 2014.

[baldrick]

From the MTSF section 2.1 - "Compensation will be based on Aggregate Service and will be subject to a maximum of two years' Pay"

Redundancy payments are based on your pay at the time you take redundancy

To be accurate VR payment is based on your average pensionable pay over the 26 weeks before the date of your VR.

Cheers, Baldrick, my mate works in Gloucester MC on earlies and was asked to work on nights since the beginning of October, with your info I will tell him he will get more VR than he expected, he finishes in March 2014.

If he has already been given a quote, it will not take into account the whole time he will be getting shift allowance (and only about half of his nights allowance is pensionable). It is based on the 26 weeks before the VR quote being calculated. But the VR payment is reviewed about 8 weeks after he takes VR and any shortfall is paid then.
I went on lates 6 months before I took VR, but my quote didn't cover the full 26 weeks. I got a further payment of over £1,900 when the VR was reviewed 8 weeks after I left. I got the full 104 weeks VR, so going on late shift meant an additional £4,800 on my total VR payment, which is what your mate should get if he is getting the full 104 weeks VR, and will have done 26 weeks on nights when he leaves.