Redundancy in Local Government

webbos

I work for the local government and been paying for many years into the pension scheme. I am now being made redundant.
As I am nearly 60 I would be entitled to a lump payment and pension from this scheme but would I be entitled to any additional redundancy payment.

I am not trying to be greedy but just trying to find out the rules and regulations.
Thanks for all your help

Jarndyce

webbos wrote: »

I work for the local government and been paying for many years into the pension scheme. I am now being made redundant.
As I am nearly 60 I would be entitled to a lump payment and pension from this scheme but would I be entitled to any additional redundancy payment.

I am not trying to be greedy but just trying to find out the rules and regulations.
Thanks for all your help

You are entitled to a redundancy payment when you are made redundant and to take your pension benefits when you reach 60 (and maybe before 60 depending on your circumstances - you would need to speak to the LGPS administrators, and/or to your union, to determine exactly what your options are given your length of service etc).

Also, as you will potentially be getting two large payments in one year, you might want to speak to a tax advisor or IFA to ensure you organise things in the most beneficial way.

daveyjp

As you aren't retiring you are also eligible for redundancy payment.

Your HR dept will calculate this figure, your pension provider will provide your pension figures.

Andy_L

Typically, in final salary schemes you are (forceably) retired early rather than made redundant and, instead of a redundancy payment, receive an enhanced pension instead.

Scheme rules here: https://www.lgps.org.uk/

Jarndyce

Andy_L wrote: »

Typically, in final salary schemes you are (forceably) retired early rather than made redundant and, instead of a redundancy payment, receive an enhanced pension instead.

Scheme rules here: www.lgps.org.uk/

Then why did the OP say they were being made redundant?

Have you not seen the news? There have been thousands of redundancies in local government this year.

snowcat53

Andy L is correct and even if one is made redundant it effectively becomes early retirement, getting full unreduced pension but no redundancy payment (unless there is an excess, which is unlikely)

Jarndyce

snowcat53 wrote: »

Andy L is correct and even if one is made redundant it effectively becomes early retirement, getting full unreduced pension but no redundancy payment (unless there is an excess, which is unlikely)

Obviously that can't apply in all cases - perhaps over a certain age? 55 perhaps? It certainly wouldn't apply to a 30 year old would it!

Clearly there are some LG-specific rules involved here - the OP should speak to their own HR/Pension Scheme or union people.

Cash-Cow_3

webbos wrote: »

I work for the local government and been paying for many years into the pension scheme. I am now being made redundant.
As I am nearly 60 I would be entitled to a lump payment and pension from this scheme but would I be entitled to any additional redundancy payment.

I am not trying to be greedy but just trying to find out the rules and regulations.
Thanks for all your help

Yes you will get a redundancy payment and the pension (including the lump sum). Your HR department will have a policy on redundancy which will tell you how much you will get.

snowcat53

Jarndyce wrote: »

Obviously that can't apply in all cases - perhaps over a certain age? 55 perhaps? It certainly wouldn't apply to a 30 year old would it!

Clearly there are some LG-specific rules involved here - the OP should speak to their own HR/Pension Scheme or union people.

Just so, and the OP absolutely needs to check the details. 55 is relevant age in NHS 2008 scheme

ali-t

Jarndyce wrote: »

Obviously that can't apply in all cases - perhaps over a certain age? 55 perhaps? It certainly wouldn't apply to a 30 year old would it!

Clearly there are some LG-specific rules involved here - the OP should speak to their own HR/Pension Scheme or union people.

Anyone over 50 in my local authority. Enhanced pension package and as long as there will be savings by letting you go, you are pretty much guaranteed to get it.

browneyedbazzi

OP really does need to speak to HR and the pensions people at their LA (and possibly a union rep if you're a member) - each scheme and situation is a bit different. I've worked for a couple of LAs when they went through restructures/cutbacks etc and their financial positions have been drastically different. One did the bare legal minimum and another offered greatly enhanced packages.
My understanding of the local government pension scheme I am in is that early retirement is dependant on a calculation of your age and years of service. Availability of any enhanced package will be up to the employer.