Company pension and redundancy

tabath

My OH has just been told her job is "at risk" of redundancy. She is 50 and is in a good company pension scheme. After reading the booklet on hte scheme it seems there is provision for the pension to be enhanced: The statement actually says:

"If you retire early due to ill-health, company request or redundancy, potential service from the date of early retirement to normal pension age would be added to actual pensionable service, without further contributions by yourself"

It then goes on to say however that:

"An early pension(except on ill-health grounds) may be subject to Inland Revenue limitations. In certain circumstances , this means that the benefits from the plan may need to be restricted"

My wife has 20 years so if the above section is implemented(because she is being made redundant at 50) she would get another 10 years added on to her time and be able to retire without her pension being reduced on 30/60 of her final pay?

Or does the fact Inland Revenue put minimum retirement age upto 55 in 2006(to be implemented no later than 2010) affect this? If so what a farce!!

Can anyone help with some advice about what the best way to proceed is? Where ,apart from the trustees we could talk to to clear this up? Cheers

tabath

Just been looking at documents on the DWP web site and it seems to me that anyone who is made redundant after 6 april 2010 and is between 50 and 55 and had a right in 2003 to take an "unqualified right" to take an early pensions due to redundancy for example is classed as having a "Protected pension age" and so would be able to retire early and take the benefits stated within the plan since they are unqualified: IE: in this case an extra 10 years of contributions from the company and a an early pension without penalties.

tabath

I have been looking at this document:

RPSM03106020 - Technical Pages: Protecting pension rights from tax charges: Taking benefits before normal minimum pension age: Right to take benefits from age 50

tabath

No one able to comment on this?

richbeth

tabath wrote: »

No one able to comment on this?

Hi,
I'd recommend the company HR department, they should be able to give some guidance on retirement age and in a redundancy situation have a moral obligation to provide your wife with this kind of information. Otherwise you could just call the Pension trustees.

Good luck,

mgdavid

in my experience modern HR departments are staffed by people who don't understand the minutae of the rules especially this sort of situation.
I'd check with the Pension people first so you have a firm understanding, then go to HR, act a bit innocent and ask them to confirm what you've found out. When HR realise what it might cost them for redundancy there's a fiar chance that redeployment becomes a good possibility !