Re employment after redundancy and early pension

nigelbb

Dox wrote: »

You're being far too simplistic. Getting your pension years before the rules say you should isn't a 'penalty' - it's actually a considerable benefit, which you seem to be happily ignoring to try and justify your argument. Actuarial reductions are there to stop some members getting more than their fair share of the fund at the expense of other members. Removing the reduction for early payment is extremely costly and requires the employer to put yet more cash into a pension scheme which, if it is like the majority of private sector DB funds, is already in deficit.

Let's think of it another way. If it's a 'penalty' to receive a decreased pension early then those payments made early are a 'bonus'. The 'bonus' & the 'penalty' balance one another out.

squirrelpie

How many angels can dance on the head of a pin?


On a slightly different aspect: In some cases of redundancy, it would be the company's HR people who could answer the OP's question, rather than the pension scheme administrators, since the pension scheme can make early ureduced payments if it is funded to do so, but it is up to the company to tell the pension administrators whether each particular case will be funded by the company.

MovingForwards

Whose kids is she looking after?

Does she want to work full-time or term-time? Would she like to wind down a bit and work part-time instead?

Can she not stretch her pay off until she retired and then claim her pensions, or does she still have a mortgage/rent and other debts to pay off?

xylophone

Whose kids is she looking after?

Perhaps grandchildren during school holidays?

With regard to her occupational pension, it is not impossible that the package includes the offer of taking the pension without actuarial reduction.

She needs to read the terms of the redundancy package very carefully.

She should also check her state pension forecast.


With regard to the question of the effect of continuing to work after drawing the pension, there are certain schemes (TPS is one) where a pension can be abated in these circumstances - however, the OP's mother's pension administrator should be able to clarify the position with regard to her particular scheme.

Tom99

xylophone wrote: »

With regard to her occupational pension, it is not impossible that the package includes the offer of taking the pension without actuarial reduction.

That was certainly the norm a few years ago with large corporations, maybe not as common now. I 'retired' at age 50 with an immediate unreduced pension due at age 60 plus you could top up that pension by using some of the taxable redundancy lump sum.