Buy downs?

[fishtank]

im in a position where I would consider buying down my hours if the opportunity arose.

I'm not sure about this, but I thought you could ask for a Buy Down of hours at any time, not just when VRs are being offered.
Anyone know?

For buydowns the same criteria has to apply as does with VRs meaning there has to be surplus hours in your office and it has to be done on a seniority basis.

You can voluntarily apply to reduce your hours at any time, you just won't get any money for it.

[baldrick]

Thanks for the replies TBT and fishtank. I think that Buy Downs might have been available at Mount Pleasant continuously for the last few years as MP was supposed to have surplus staff, as a result of staff transferring in from the other London MCs which had been closed.

[dvbuk55]

Thanks for the replies TBT and fishtank. I think that Buy Downs might have been available at Mount Pleasant continuously for the last few years as MP was supposed to have surplus staff, as a result of staff transferring in from the other London MCs which had been closed.

Obviously somebody was being paid for nothing then.

[supersonic]

Thanks all for taking the time to reply, Our office is currently having a revision so I may be in with a shout. Its sad to see so many people looking for a way out. Thanks again

[supersonic]

Theres been a lot of talk around VR 's recently, im in a position where I would consider buying down my hours if the opportunity arose. Please don't judge me and throw accusations at me re: protecting full time jobs. In all honesty ive been feeling it of late with the longer deliveries etc. I'm just curious, is there a reckoner similar to the one used to work out VR payments.

46 years old
16 years service
wanting to reduce from 39 to 25 hrs.

Thanks in advance

Hi supersonic. I don't think there is a Ready Reckoner for Buy Downs as there are too many variables, but there is a formula set out in the MTSF2 2010 agreement which I think still applies. Fishtank has posted that agreement in the Downloads section. This is the relevant paragraph:
....................................................................................................................................................................
Managing the Surplus Policy - Appendix 4
Buy Down (hours) Policy





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 following the Buy Down and

B = the employee's contracted hours immediately prior to the Buy-Down
....................................................................................................................................................................

So, at 46 years old with 16 years service, according to the MTSF2 VR Ready Reckoner your VR payment would be 69.375 weeks.
It would be multiplied by A (your contracted hours after Buy Down) = 25, divided by B (your contacted hours before Buy Down) = 39.
Putting that in a calculator to get decimal figures, 25 divided by 39 = 0.6410.

So your VR payment of 69.375 weeks is multiplied by 0.6410.

Again using a calculator (my maths isn't good!) : 69.375 x 0.6410 = 44.469 weeks Buy Down.

I think that sounds about right, but I'm not an expert on buy down so don't take it as gospel.

Edit: I don't know about the tax position on Buy Downs. For VR tax isn't payable on the first £30k, but I think you do now pay tax on Buy Down payments, though I think I remember seeing somewhere on here that RM will pay half the tax amount.

If that was the offer Baldrick id rip their hand off

[Chelseablue]

For all of us that are sadly staying, is there a light at the end of the tunnel? Will it get better ,or will the shareholders be whipping us to death in there gimp masks?

[TrueBlueTerrier]

For all of us that are sadly staying, is there a light at the end of the tunnel? Will it get better ,or will the shareholders be whipping us to death in there gimp masks?

Come on Chelseablue - you've been here long enough to know that the light at the end of the tunnel, will probably turn out to be a speeding arctic with no brakes.