Go now on voluntary of wait for compulsory or...?

amcluesent

So, my quango is desperate to get people out the door by 31st March and is offering 'targeted' voluntary. I'd get Feb & March pay, 3 months PILON plus 8 months pay in compensation.

There's no other wage earner in the house, so CB JSA would be 'it' as far as benefits are concerned.

However, it's certain that after 1st April, they'll go for compulsories but that'll take six months (3 months consultation/3 month notice period less paid holiday), plus compensation on compulsory terms.

Of course, they might not accept my expression of interest in the voluntary, nor might I be compulsoried.

Chances are though, sometime in late 2012, my function will be TUPEd over to private sector 'partner' to deliver back office services so that'll be the end of final salary pension/benefits

What considerations should I be weighing up and 'gotchas' that peeps have found in taking a package?

BTW, capital is way above the £16K limit for IB JSA, esp. after compensation. Mortgage free home owner.

lookingforideas

Things that I would think about are:

1. Is there a differnece between the payout for voluntary and compulsory - below 12 years service don't think there is

2. Staying has the benefit of getting a slightly better lump sum due to the extra three to six months service

3. Would the redundancy payment and other payments put you into the 40% tax bracket - in which case may be better to go half way through the tax year next year, especially if you think that you'll won't be earning once made redundant or will earn less.

4. Additional pension that could be earned in the extra six months.

5. Whether redundancy is based on salary over the last 12 months or actuals at the point of leaving - civil service pay rise is normally the 1st August so if based on last 12 months then the full effect of the last payrise won't be counted.

getmore4less

TAX will be significantly different.(lower if you don't get work). after april 5th.

depeds how confident of being able to manipulate a deal later before the TUPE.


Do you have reps they should be telling everyone to say they will wait, then they may(have to) up the offer.

the reps should also be making it clear that any future TUPE will need to honor these terms.

What are the compulsary payments based on?

amcluesent

>TAX will be significantly different.(lower if you don't get work). after april 5th.<

Yep. We're arguing that as the last working date is 31st March, then the PILON covers Apr/May/June 2011 and hence should be taxed (mostly) in the 11/12 tax year.

Compensation payment is tax free up to £30K of course, and we can't see a way of having that paid in the 11/12 tax year. Am looking at whether any of the compensation above £30K can be used gross to buy years in the Civil Service pension scheme.