Civil servant reduncancy

pekwah1

Hi,

My friend is due to be made redundant, she is a civil servant and has an effective 26 years service although has been there almost 40 (had a break of employment). Currently on £29k.

The department is being shrunk and a lot of roles are being made redundant as well as hers. She is currently a supervisor or manager (can't remember).

She has been offered a redundancy of £35k or she has the option of applying for what appears to be her job although they have renamed this a "team leader" and is advertised at £22k.

So, at 59 years old she may struggle finding another job, but £35k is not going to cut it if she can't. Plus 22k is too big a pay cut to accept.

Any thoughts are kindly received.

Regards,
Andy

lincroft1710

CS policies seemed to have changed. Previously if you were in your late 50s you would have been offered early retirement with pension and lump sum.

If this is no longer the case she should apply for the £22K job.

marlot

She needs to look at the civil service compensation scheme. I thought that at 59 she qualified for immediate payment of pension with no actuarial reduction. But to get this, she would probably have to give up her redundancy payment

http://www.civilservice.gov.uk/pensions/latest-news/compensation-scheme

pekwah1

Well here's where it gets more complicated, took a lump sum on pension a year ago (maybe £20k) so not sure how that affects it?

lincroft1710

pekwah1 wrote: »

Well here's where it gets more complicated, took a lump sum on pension a year ago (maybe £20k) so not sure how that affects it?

Do you mean she commuted her pension to an early lump sum, because, if so, that figure seems rather low.

Tiddlywinks

How can anyone give any meaningful advice if you don't give a clear account of the issue, figures etc.

Plus, don't drip feed the information... that 'well here's where it gets more complicated' bit should have been included in the original question... and if you don't know the facts how is anyone else supposed to?

Andy_L

Is the new job the same grade and the advertised £22k is the bottom of the pay scale & thus she'd keep her £29k

sammyjammy

This sounds like nonsense. Sorry but if she truely is a Civil Servant then the redundancy payment does not reflect that of the CS compensation scheme rules and she would not be offered a job at a lower grade if she didn't take the redundancy and there would be no flat rate salary offered, it would be on a pay scale, it just doesn't work like that.

I've never heard of anyone receiving an early lump sum from their CS pension whilst continuing to work.....

Perhaps if your friend has questions they should post the facts themselves.

She took 14 years out and it's counted as continuous service or was it separate periods?

cannyClaire

sammyjammy wrote: »

I've never heard of anyone receiving an early lump sum from their CS pension whilst continuing to work.....

It is possible from the age of 50 to reduce hours or downgrade (to reduce salary by a certain percentage) and claim reduced pension, which could also include a reduced lump sum. A forecast for this can be obtained every year if necessary, as the figures will be more beneficial the nearer to a pension age it is done.

sammyjammy

cannyClaire wrote: »

It is possible from the age of 50 to reduce hours or downgrade (to reduce salary by a certain percentage) and claim reduced pension, which could also include a reduced lump sum. A forecast for this can be obtained every year if necessary, as the figures will be more beneficial the nearer to a pension age it is done.

You're right,I've only known those 60 and over do this, would be quite a strange thing to do, that'll be why the redundancy payment offered is only £35k I guess. Very complicated and still doesn't explain the downgrading option. Would be very strange for specific single jobs to be made redundant as well. In any normal circumstances redundancy offered would be voluntary and if you decided not to take it you would remain in grade.

cannyClaire

We are all guessing until the OP or his friend comes back with some more facts!