Shares and backdated pay if I leave

[tasape]

why didnt you ask for a sabbatical or unpaid leave for the duration of your travel
at least there should be a job for you when you get back

[RobertT]

Robert T
The £960 calculation is not exactly correct as you have based 12% NI on all of the £3000 whereas the weekly upper threshold I believe is somewhere around £750 for NI, so I would assume that the week in which you sell your shares you would exceed this limit so Ni would only be on £750 (approx) less your wages for that week.
There is however an NI Banding 1A which deals with employer benefits, which this could possibly come under and unfortunately the rate of NI for this is 13.8% so the bill may be higher than you have stated.
The other anomely is that any budgetary changes in tax and ni rates in the coming years may have an impact either negative or positive on the rates you have used.

I found this on the HMRC website which suggests we both might be slightly off the mark:

If you're employed you pay Class 1 National Insurance contributions. The rates are:
if you earn more than £149 a week and up to £797 a week, you pay 12 per cent of the amount you earn between £149 and £797
if you earn more than £797 a week, you also pay 2 per cent of all your earnings over £797
You pay a lower rate if you're a member of your employer's contracted-out pension scheme.

I already knew about the reduced NI for contracted out pension schemes which we do benefit from as we only pay 10.6% instead of 12%, although I think that reduction will stop in 2016/17.

[N1-22postman]

I`m 62, 36 years a postman, intend to "retire" in the next 12 months, already receive my NRA60 pension and will then take my NRA65 pension (reduced because of taking it early). I will then be 63 and do not intend to work again . Will this be deemed to be "retirement" under Royal Mail rules of leaving the job and as such I presume I will get the free shares even though I will not get the state pension until I reach 65.

[RobertT]

I`m 62, 36 years a postman, intend to "retire" in the next 12 months, already receive my NRA60 pension and will then take my NRA65 pension (reduced because of taking it early). I will then be 63 and do not intend to work again . Will this be deemed to be "retirement" under Royal Mail rules of leaving the job and as such I presume I will get the free shares even though I will not get the state pension until I reach 65.

We don't currently know the answer to that question, all the bumf says is that if you retire the shares will be sold and you will get the money. We have not been told what actually constitutes retiring.

[Lincox]

I think that it will be linked to state national retirement ages. If not someone could retire one day and start a new job the following day.

[RobertT]

I think that it will be linked to state national retirement ages. If not someone could retire one day and start a new job the following day.

I agree that the state pension age is perhaps the most logical age although there is of course nothing stopping anyone from still working beyond state pension age if they either want to or need to.

[dvbuk55]

I think that it will be linked to state national retirement ages. If not someone could retire one day and start a new job the following day.

I agree that the state pension age is perhaps the most logical age although there is of course nothing stopping anyone from still working beyond state pension age if they either want to or need to.

Like me Bob, you've no idea how poor I am. They say old age and poverty go hand in hand and here am I sat with a crust, blanket and my trusty collie huddled together for warmth - oh and the crust is his

[N1-22postman]

Just had a letter from Royal Mail stating their policy "for the purposes of the SIP (Share Incentive Plan),any employee who is aged 60 or over who resigns, will be treated as "retiring" ". If you leave Royal Mail within 3 years of 15/10/13 (the date 2013 Free Shares were allocated) and have reached 60 you will be able to keep or sell your 2013 allocation of free shares. If you decide to sell immediately there will be no income tax, National Insurance Contributions or Capital Gains Tax on the proceeds received.
To receive the 2014 Free Shares you need to remain employed by Royal Mail until April 2014 when the remaining Free Shares will be allocated and the same rules that applied to the 2013 Free Shares will similarly apply.
This is good news for old timers like me looking to "get out of jail" soon!

[chrisj]

Nice little bonus on top of the lump-sum and the pensions. And it does not stop you taking up a different, perhaps part-time employment within a short while. Happy Days

[jade]

I've recently been offered VR and I'm seriously considering it.I've been with RM for 26yrs,however I'm now concerned that I will lose my shares if I decide to go,having read todays Equiniti info.Has anybody got anymore detailed info on the section "What happens if I leave RM",particularly the bit "you may lose all your free shares".

[jade]

Just registered,found the answer.If you leave the company, you will no longer be able to participate in the SIP and your Free Shares will need to be taken out of it. You will have to forfeit your Free Shares if you leave employment because you resign or are dismissed within three years of being given them. If you leave for reasons such as retirement, redundancy, sale of business, injury or disability, forfeiture will not apply.

[rhino49]

Letter from HR this week "The rules of the SIP stipulate that any employee retiring from Royal Mail Group Limited will be allowed to keep their free shares, but they must be removed from the SIP. You will not need to pay income tax or National Insurance contributions when you take your free shares out of the SIP. Royal Mail's policy is that for the purposes of the SIP, any employee who is aged 60 or over who resigns will be treated as "retiring".......... You may be subject to Capital Gains Tax should you sell them at a later date. If you decide to sell your Free Shares immediately, there will be no Income Tax, National Insurance Contributions or Capital Gains Tax on the proceeds received.

Almost tempted to bring forward my retirement

[Darren Bent]

So could people do a deal with Dom to "change the reason of leaving work"

[fishtank]

So could people do a deal with Dom to "change the reason of leaving work"

No.
All three of the "good" reasons for leaving ..redundancy,ill-health retirement and retirement all have a process to follow involving HR.
The only one a Dom could possibly manipulate at all would be IHR but without an Atos report that recommended IHR it wouldn't fly.

[oralrural]

Hanging around until I get the rest of my shares so will be gone by the end of April.
Due £200 bonus in a week or so which is the FINAL payment of the revision.
Our office was one of the 4 to start it a few years ago had bonuses totalling over £1600 so far.
So with this bonus the Christmas one and the £300 plus back pay and shares I'm GOING.