Pension and redundancy advice

sth.coast

I am under threat of redundancy possibly later this year. I am 57 and in a DB scheme (USS) and although I could retire (55 is minimum) it is not worth my while just now. 60 is when my pension pays out a decent amount.

I wonder what effect redundancy has on my pension and ability to retire. If I was made redundant now and retired, would I be entitled to what I would expect to receive at 65 in my pension? Or would my employer have to make up the difference? Basically trying to find out if being made redundant entitles me to anything.

The threat of redundancy was very unexpected has has upset my plans for retirement as I was looking at 62. Being made redundant at 58 is not appealing as it will be difficult to find similar employment.

Thanks in advance

Dazed_and_confused

Have you read the scheme rules?

Alice_Holt

Time to do some research / email or telephone your pension administrators for information.

Will any redundancy package include an uprating to your pension scheme to compensate for an early exit?

I would suggest you need to get specifics from your employer / pension scheme administrators.

Here's a start:
https://www.uss.co.uk/public/contact-us

When you have this specific information relevant to your individual situation, you could sensibly come back to this forum for general comments / interpretation on the best way forward.

zagubov

^^^^^^^^
Plus you need to ask your union rep about this. They'll have plenty of info.

For example, many retirees return to work, but if you take redundancy as well you may not to be able to work in the same field for a fixed time.

bluenose1

Depending on your start date in the University there is an option to have your pension paid earlier without reduction. Can't remember the date, though it will be in the USS literature.
Although your pension may be reduced taking it early have you worked out the figures? With mine if I take it as 55 it will be my mid 70s before worse off. By then SP started so will hopefully be cash rich.
Also first £30k of redundancy tax free. Have they said how many months they will pay you for, because not paying tax on it makes a big difference.

sth.coast

Rather frustratingly my organisation has released no details of what is going to happen apart from it will happen sometime which leaves us all in limbo. Only thing we know is that it will be compulsory which is disappointing.

bluenose1

Would have thought they would have tried for Voluntary redundancies first.
Compulsory redundancy terms aren't very good unfortunately, hopefully there will be some enhancement.
At the very least they will have to give you a minimum of 12 weeks notice, and then the statutory minimum is 1.5 weeks for every full year.
In my case I console myself that I will at least have 6 months salary in total.

I am really beginning to looking forward to retirement, and fully intend to go by 55, if not sooner. I have started paying the max into my D.C. scheme, so for every £68 I put in it gets topped up to £100.
Have you gone on the USS website calculator that tells you how much you would get per year if you had to take it early?
I have found that very useful.