NHS Redundancy letter

joel5200

I have received an estimate of benefits letter as I am due to be made redundant on 30 June 2010. I will be 55 in April 2011 and am a special case so can retire then with no reduction in pension benefits. I have been given 3 options - firstly straight redundancy pay. Second- pension benefits and reduced redundancy pay, and third - protected pension benefits and redundancy pay (in which there is no actual redundancy pay only pension and lump sum.)

What I cannot understand is the difference between the second and third options, although the pension amount is smaller in the second case. If i opt for the second option will I get the pension amount on 30 June 2010 or will I have to wait till April 2011 when I will be 55, as I understand the pension rules change on 1 April 2010 and i thought you could not take pension till you are 55 after that date?

Would appreciate views of anyone. Thanks :)

dampsquib

I don't understand the options as listed, so really you need to get your employer and/or union to explain what's on offer. As your employer is the NHS, I'd expect the rules on redundancy terms to be well documented and available (possibly even on the Internet).
Taking an educated(?) guess though, maybe what's on offer is as follows:
1. Redundancy lump sum compensation on termination, with no payment or enhancement of the pension (earned so far), which would be protected and paid when you reach your normal (occupational) retirement age. The protection may include some index linking to protect the value against inflation.
You may be able to separately opt to claim the pension early as well, but you would suffer a big reduction re early payment.
2. A smaller compensation lump sum on termination, plus payment of your pension from 55 (but with no enhancement or reduction to the pension).
3. No compensation lump sum, but a enhanced pension paid from 55 (enhanced by inceasing the amount of service counting towards your pension).