Does pension affect redundancy?

pekwah1

Hi Guys,

So as a civil servant have been offered redundancy but keep getting told that the lump sum will be reduced because some of the pension was taken early.

Should taking a pension option have any bearing on a lump sum payment as part of a redundancy package?

Regards,
Andy

uknick

I took an exit package last year from the civil service; retirement, 10 years early.

Assuming your scheme is still the same this is what happened.

In the normal course of events my pension would have been reduced by 5% for each early year, i.e. 10 x 5% = 50%. However, the terms of the exit package allowed me to "buy out" this reduction with my "redundancy money".

If any had been left over, it would have been given back to me. But, as you can imagine, buying out a 50% reduction used up all my redundancy money.

Last year the calculators for all this were on the Civil Service pension website and my departmental website.


Hope this helps.

Andy_L

pekwah1 wrote: »

Hi Guys,

So as a civil servant have been offered redundancy but keep getting told that the lump sum will be reduced because some of the pension was taken early.

Can you expand that a bit more

Is that a redundancy lump sum or the pension lump sum that's being reduced?

Have you already retired & taken your pension but returned to work and are now facing redundancy?

Are you being offered early retirement as a (compulsory?) alternative to redundancy?

How old are you and which of the many CS pension schemes are you a member of?

Is it voluntary or compulsory terms?

cannyClaire

Is this thread about the 59 year old friend?

https://forums.moneysavingexpert.com/discussion/4793248

Has she taken partial early retirement, so has reduced her hours/salary and is in receipt of a reduced lump sum and pension?