Redundancy to save on pension-Is it legal?

majorwally

I am due to retire in a few years after 40 years.
Unfortunately, there are redundancies looming and I am worried I will be in the firing line as they would obviously make massive savings by making me redundant now rather than waiting for me to get my pension.

They will be using a skills matrix and obviously a lot of the younger guys have many more skills.

Are there any laws that protects someone in my position?

getmore4less

Check the terms of the pension scheme.
Some has special terms for early retirement on termination.

What are the likely terms of redundancy you may be much more expensive to get rid of.

Why do you think it would save them loads of money you will still get your pension just with a few years less service.

marlot

Your accrued pension should be safe, though you obviously won't have any more payments into it.

As said above, you may actually be more expensive to get rid of.

anamenottaken

majorwally wrote: »

I am due to retire in a few years after 40 years.
Unfortunately, there are redundancies looming and I am worried I will be in the firing line as they would obviously make massive savings by making me redundant now rather than waiting for me to get my pension.

They will be using a skills matrix and obviously a lot of the younger guys have many more skills.

Are there any laws that protects someone in my position?

I don't understand. Why is it obvious? How do they have more skills?

quotememiserable

majorwally wrote: »

they would obviously make massive savings by making me redundant now rather than waiting for me to get my pension.

I don't think this is right at all. They still have to pay your pension when you reach retirement age whether you work for them or not. If they make you redundant, they'll have to pay you redundancy.
I'd speak to your pensions department about the scheme rules in this instance. Its not unusual for schemes to pay pension immediately for older people who are made redundant.

Yorkie1

I think payments for pensions come out of a different pot than the wages, so the people making the decisions may not be influenced by the pension issue at all.

majorwally

anamenottaken wrote: »

I don't understand. Why is it obvious? How do they have more skills?

Oh come on,
The young folk seem to be pretty good with anything technical.
whereas i struggle with all these new gadgets.
Maybe you don't get it, but you will one day!

majorwally

quotememiserable wrote: »

I don't think this is right at all. They still have to pay your pension when you reach retirement age whether you work for them or not. If they make you redundant, they'll have to pay you redundancy.
I'd speak to your pensions department about the scheme rules in this instance. Its not unusual for schemes to pay pension immediately for older people who are made redundant.

Because I can still retire at 60 as I am on the old scheme, however, if I was made redundant now, they would pay me about £5k in redundancy, then defer my pension until 65 under the terms of the scheme, so I would have nearly 8 years till I collected it, rather than the 2.5ish at moment

getmore4less

That seems unusual

what scheme are you in? ( if it won't identify you)

£5k redundancy if you are 2.5 years from 60 say 57 with 40 years service thats 28 weeks pay so annual salary of around £9386?