voluntary redundancy

[viking]

could anyone please explain the difference between E.V.R.AND The newly mentioned T.M.A. now being offered to employees as a package for redundancy. think its mutual consent. Is this to be trusted. Also would the lump sums being offered be tax free and would the reduced pension amount mentioned be payable straight away. any help gratefully appreciated. :

[Stormproof]

Whats TMA stand for?

[tpost]

Whats TMA stand for?

Termination by mutual agreement

[headscrewedon]

Termination by Mutual Agreement
(You both agree it's in your best interests to leave)

e.g.
DIM: I wish you'd just feck off
You: Give me enough money and you can shove your job up your ****

[baldrick]

Whats TMA stand for?

Termination by mutual agreement

See http://www.royalmailchat.co.uk/communit ... nt#p160185" onclick="window.open(this.href);return false;

EVR is currently only available if you are 55 or over. It gives you the full pension entitlement you have accrued to date, plus up to 6 and two-thirds years additional service, as long as that doesn't take you to over 60 - ie if you are 57 you would only get another 3 years.

TMA may be available if there is a shortfall of volunteers for EVR and it is currently available to those between 50-54. But
your pension (and any lump sum) would be actuarially reduced by 5% for every year before 60 - so if you are 50 you would lose 50%, 51 - 45%, 52 - 40%, 53 - 35%, and at 54 you would lose 30%.
Most people in my MC who were offered TMA turned it down as they would lose too much.

The age limits for EVR and TMA will change after next March when the retirement age is raised to 65, so I think they
will each be raised by 5 years.

I'm pretty sure you don't pay tax on the pension lump sum, but I'm not 100% sure about that.

And the pension would be paid from the date agreed by you and RM when you would be leaving.

[stodgy88]

no tax on pension lumpsum----redundancy lumpsum taxed after £30,000-