buy down of hours

lightningpostman · Post by **lightningpostman** » 23 Aug 2018, 07:29

how is the compensatory payment worked out?

or is it a set sum?

Post by **stodgy88** » 27 Aug 2018, 14:01

Thought it had been stopped ages ago.

fishtank · Post by **fishtank** » 27 Aug 2018, 14:19

It's exactly the same as the VR calculator but pro-rata for the hours "sold" so it will depend on length of service before and after the age of 41.

fishtank · Post by **fishtank** » 27 Aug 2018, 14:31

For example purposes..

If you started age 31 and have 20 years service

10 years pre age 41 = 10 weeks
10 years post age 41 = 15 weeks

25 weeks x 3.75 = 93.75 weeks.

VR payment = weekly pensionable pay x 93.75

Buy down payment = (hours sold divided by contracted hours) x VR payment.

Post by **stodgy88** » 28 Aug 2018, 18:38

I stand corrected sorry.

Post by **stodgy88** » 28 Aug 2018, 18:41

I stand corrected sorry.

Post by **standanddeliver** » 02 Sep 2018, 20:55

If I want to reduce my weekly hours by 15 (2 days) but only have 12 months left to work, would I be entitled to any 'buy down' compensation? (I assume that I would have to work for a further 2 years to get any payment, also my DOM has not mentioned that any payment is due to me)

Thanks.

clashcityrocker · Post by **clashcityrocker** » 03 Sep 2018, 07:07

If RM want to take the hours out of the office they might offer a buy down.
It is less common and less attractive as I think you have to pay tax on the lump sum.

If you want to reduce your hours then they are under no obligation to offer a payment.

Post by **standanddeliver** » 03 Sep 2018, 21:43

clashcityrocker wrote:If you want to reduce your hours then they are under no obligation to offer a payment.

Thanks, I thought that may be the case.