Redundancy question

nearleyretired

I am nearly 63.

I am in a final salary pensions scheme (normal retirement 65) and think that I may be about to be made redundant.

Does anyone know if different rules apply at this age (month for every year up to 26 )? Or if it is normal practice for the employer to offer some other terms.

Thanks in advance to anyone who can enlighten me.

Fran

***Boardguide comment***

Hi, I have moved this to our new Redundancy Board where I hope you will get an answer.

McKneff

As far as i know the statutory redundancy pay is 1 weeks pay for every year worked up to 41 years of age, then 1and a half for years thereafter up to a maximum number of years, of course. The maximum pay per week is £330.
The other terms you mention regarding your employer, it depends entirely on your contract. You can, of course claim JSA after leaving your job.
If i am wrong i am quite happy to be corrected.

Good luck
Annie

nearleyretired

anniehanlon wrote: »

As far as i know the statutory redundancy pay is 1 weeks pay for every year worked up to 41 years of age, then 1and a half for years thereafter up to a maximum number of years, of course. The maximum pay per week is £330.
The other terms you mention regarding your employer, it depends entirely on your contract. You can, of course claim JSA after leaving your job.
If i am wrong i am quite happy to be corrected.

Good luck
Annie

Sorry yes slip of the pen I meant week not month

KingCheeseZombie

Depends entirely on who you work for but final salary pension schemes tend to only exist in the public sector as they are expensive to run - you will probably find that an organisation that can afford to run a final salary pension scheme (NHS for instance) has more favourable redundancy terms than the statutory equivalent.

There may also be different redundancy options available to you depending on whether you have a pension (e.g. early retirement without reduction of pension).

If you told us the sector of work (e.g. NHS/Teachers/Civil Service/Private sector etc.) we may be able to help further.

nearleyretired

I work for a private company.

I know what the redundancy terms are for a 60 year old (It nearly happened then!!).

What I was trying to get a handle on was

1) do these terms usually vary with age (near retirement).

or

2) Is it normal if one is close to retirement to offer VER instead with no enhanced pension but (say) a year's pay?

I don't want to inquire officially in case my inquiry pushes things along.

lrr_2

Where I used to work before getting made redundant - 1 month for every year max 26 years. People I know that got made redundant in their 50/60's there were quite well off having been there for years and also they got early retirement as well (final salary pension)! It all depends on the company and what they offer you.

Good Luck

KingCheeseZombie

nearleyretired wrote: »

I work for a private company.

I know what the redundancy terms are for a 60 year old (It nearly happened then!!).

What I was trying to get a handle on was

1) do these terms usually vary with age (near retirement).

or

2) Is it normal if one is close to retirement to offer VER instead with no enhanced pension but (say) a year's pay?

I don't want to inquire officially in case my inquiry pushes things along.

As you are working in a private company there may be somewhat more flexibility than in public sector schemes.

But the general rule is that you have a minimum right to statutory redundancy pay (given that you meet certain conditions); however, an employer may give you more favourable terms as part of your contract of employment (for recruitment/retention etc.). As it is the employer that pays the redundancy they generally have to give you what your contract entitles you to providing that it is no worse than the statutory minimum - in which case you would get that.

Unless your contracts redundancy terms and conditions state otherwise - you should be entitled to the same options as someone who is not near retirement. If an employer offers only VER then you have a strong argument of age discrimination (as you would only be getting this deal because of your age).

Other than the statutory minimum - there is no real 'standard operating procedure' that all companies should adhere to as these matters tend to be dealt with on a case by case basis.

To note: Employers CAN legally impose upper age limits on their workforce - i.e. you may only work until age 70 - then you would have to leave without any redundancy pay.

restinproportion

Be careful! On R5 Live this morning, a caller explained that he had been forced to take his company pension early, at the age of 50, so obviously at about half the rate he was expecting. It was not clear whether this was enforced by his erstwhile employer, the implication was that it was by the JobCentre when he tried to claim JSA because it seemed he could not have it.
Many company pension schemes will allow early retirement for health reasons, but it seems unlikely to me that they would force you to take the pension early. Do be careful though if applying for JSA because lots of the questions on the application forms relate to pensions either in payment or expected to be in the future.
I had to complete the JSA application process a couple of weeks ago, and it was explained only after I had completed and signed all of the forms at the initial JobCentre interview that these questions are about company/private pensions only, not the State one. BTW, if you are a man, you can also claim Pension Credits after age 60. Good luck!

Shorthand

Having taken redundancy and very early retirement (aged 50) in 2006, JSA will not pay if your pension is more than £50 per week (irrespective of everybody being supposedly allowed to claim on contribution-based JSA), however they will cover your NI contributions, useful, particularly if you have come up short of NI contributions over the years and are nearing state pension age. However, for the second time in as many years, I have applied for JSA (both periods for unemployment of 4-6 weeks), the last time I tried to apply was 26th Nov 2008 and I am still awaiting a decision re eligibility to receive JSA between November and 5th Jan when I started a new job (and unfortunately they will not issue my P45 until they have settled the claim!!!! which is proving very embarrasing with my new employer). I have rang them every day for the last week and am still getting nowhere as they appear to have lost all the paperwork sent to them by courier from my local JSC, therefore good luck but most of all have patience - you'll need it.

sunderlandbill

Can someone offer some advice.
I am employed part time as a delivery driver,during the cold spell whilst making a delivery I sliped on the ice and broke my arm in 2 places
I am getting statuary sick pay but I feel that I won't get back the full use of my hand .so I have this feeling that eventually this company will make me redundant as I can't carry on doing the job I was employed to do.
As this accident was at work does anyone know, that if I am unable to return to work due to the injury I received whilst working what benefits are available to me,and am I in line for any compensation from this company.