payed off

[comeracing]

couple of lads in our office recently got payed off iknow one was ill health just wondered how much they would have been entitle too,would they have got a lump sum and a weeks wages for every year worked,anybody got any info or figures on this matter kind regards

[Celgar]

couple of lads in our office recently got payed off iknow one was ill health just wondered how much they would have been entitle too,would they have got a lump sum and a weeks wages for every year worked,anybody got any info or figures on this matter kind regards

Not entirely sure but I think IHR is more than normal redundancy. I think redundancy is 16 grand plus so much per year worked. Liable to be a lot of posties looking into this soon before the ship sinks.

[noggin1969]

32 years in and I'd leave my uniform at the door on my way out , but not holding my breath for a payout just yet. With the turn over of staff through IHR and sackings at the moment it'll be a while off if ever.

[RobertT]

IHR with lump sum = 34 weeks pay plus either 9 or 12 weeks PILON depending on service. So a maximum of 46 weeks pay.

Voluntary redundancy = up to 104 weeks pay depending on age and length of service. See the ready reckoner to work yours out.

Statutory redundancy(the minimum they have to pay if you're getting made compulsory redundant) = depends on age and length of service, but £15,240 is the maximum amount payable. Calculate yours here.

Plus in all three cases you get to keep or sell all your free shares without paying any income tax or NIC's.

[Hertsman001]

Is the enhanced pension still in the mix ? I have an idea it may not be any longer .

[RobertT]

Technically EVR still is a possibility for the over 55's as far as I know.
But the terms were changed a few years ago(2015?) meaning that if the total cost to the business is more than 104 weeks pay, then it wouldn't be offered, and normal VR terms would apply instead.

I think EVR will disappear altogether when the RMPP/DBCBS is replaced by the proposed CDC pension.

Presumably both VR & IHR will remain in some form going forward, but whether the current generous terms will continue long term is questionable in my opinion.

[Hertsman001]

Technically EVR still is a possibility for the over 55's as far as I know.
But the terms were changed a few years ago(2015?) meaning that if the total cost to the business is more than 104 weeks pay, then it wouldn't be offered, and normal VR terms would apply instead.

I think EVR will disappear altogether when the RMPP/DBCBS is replaced by the proposed CDC pension.

Presumably both VR & IHR will remain in some form going forward, but whether the current generous terms will continue long term is questionable in my opinion.

Thanks for the reply

[stodgy88]

According to the ready reckoner,if between 55 and 64.5 ,you would receive 26 weeks pay and enhanced pension,enhanced by what percentage ,anyone know, P.S I am already taking my defined contribution pension,and have recently been re-enrolled in the latest royal mail pension thanks.

[RobertT]

According to the ready reckoner,if between 55 and 64.5 ,you would receive 26 weeks pay and enhanced pension,enhanced by what percentage ,anyone know

The ready reckoner is now quite an old document and what you mention(EVR) has been superseeded by the MTSF2 agreement. The enhancement was 37.5% of the pension you would have accrued had you stayed in RM employment until 65. I saved the MTSF2 EVR/VR info to my computer when it was posted on RMC a few years ago:

Further to LTB 350/2015 discussions with Royal Mail on the MTSF review have now concluded.

Attached is the review agreement which has been endorsed by the Postal Executive, together with “Additional guidance on ETE cases” which is a Royal Mail policy document which has been amended in consultation with CWU but does not constitute a formal agreement.

Background
Two elements of the MTSF section of the Business Transformation Agreement of 2010 were “time limited” and subject to review. These were:

The suspension of a “cap” of two years pensionable pay on cost to the business of redundancy (which had the effect of enabling members of the Royal Mail Pension Plan aged over 55 to take a package including immediate payment of an enhanced pension).

An additional two years support and an increase in the cap on Excess Travel Expenses from £1,500 to £20,000 for those in the former Letters business whose travel costs exceeded £1,250 per year following redeployment.

These terms were originally due to cease on 31st March 2013 but were extended a number of times, most recently by the “Joint Statement: Balanced approach to growth, efficiency and incentives” which deferred the review until May 2015.

In addition to this, during 2014 HMRC changed its policy on taxability of buy down of hours payments, to make them reckonable for tax and National Insurance (NI). As part of the Joint Statement Royal Mail agreed to pay 50% of the cost of tax and NI, or provide the option of payment of buy down lump sum into pension, again reviewable in May 2015.

Voluntary Redundancy Cap
It has not been possible to persuade the business to further extend the suspension of the cap. With effect from 1st October 2015 the suspension will be lifted. This does not affect redundancy terms based on the multiplier but will limit the ability of members of the Royal Mail Pension Plan (RMPP) to receive immediate payment of enhanced pension to circumstances in which the total cost to the business does not exceed the equivalent of two year’s pensionable pay.

Where the combined redundancy and pension cost would exceed the equivalent of two years pensionable pay, cash compensation of 104 weeks pensionable pay will be offered instead.
If a redundancy exercise is already in progress and some employees have a last day of service before 1st October and some after, the current terms will apply throughout.

P.S I am already taking my defined contribution pension,and have recently been re-enrolled in the latest royal mail pension thanks.

I assume you've actually already taken your defined benefit(NRA60 & NRA65) pension? If that's the case, then EVR is no longer a possibility for you in any circumstance, but VR should be as far as I know.

[stodgy88]

Thanks Robert. Excellent stuff.