LGPS and voluntary redundancy

Paz2021

Hello

There is a shortfall of employees wanting to take voluntary redundancy so the process will escalate to compulsory if not enough people come forward. 

I have been told by managers that I could be "too expensive" to let go ( I take it they mean the pension strain cost ) 

My question/query is -
Am I entitled to voluntary redundancy payment plus my pension (to date) unreduced whether or not " I am too expensive to let go"


Paz

daveyjp

Your Council will have a formal adopted redundancy policy and that will dictate what you are or aren't entitled to.

Paz2021

Thank you for reply. 
I have the most up to date redundancy policy..... what do you mean by an adopted policy?
Thank you

daveyjp

Adopted merely means it is agreed by the Council and will be used to inform voluntary redundancy decision.  It gives information on what you are entitled to and how the decision is made.

They generally won't make a decision which falls outside the policy, unless there are special circumstances.

Paz2021

Thank you for your time and this information. 
Hopefully,  I will receive my offer in the next few days.

lincroft1710

When I was in Civil Service, because of a change in Govt policy, the department I worked in became overstaffed and voluntary early severance or redundancy was offered. One of my colleagues applied and was turned down. No reason given but we all guessed it would be because he was 9 yrs away from earliest date he could have received his CS pension under normal circumstances.

I suspect that as you are 55, your assumption about pension strain cost is correct.

As you would be leaving voluntarily rather than on compulsory redundancy your entitlements are, as daveyjp has said, dependent on your council's voluntary severance/redundancy policy

Paz2021

Thank you,  I've everything crossed I'll be accepted for VR as very few people have submitted an interest.
I should find out shortly.
Thanks again. 

Poppy9

Paz2021 said:

Thank you,  I've everything crossed I'll be accepted for VR as very few people have submitted an interest.
I should find out shortly.
Thanks again. 

I believe LGPS rules changed last November and the authority now has to offset the pension strain cost with your redundancy payment.  This means instead of say £15k redundancy, pension with mo reduction did taking early and pension lump sum from old scheme you only get the last  two and the balance of any redundancy money after they offset their costs.  It's not been hugely publicised, unions were challenging and £95k limit is no more but not sure about redundancy offsetting pension strain.   I retired LGPS 2019 age 55 with 30 years service (actually worked 38 years but worked part time for years).  I had heard rumours of changes but they were in relation to bringing forward the 2028 date for ERVR iage to 57 for redundancy & early access to pension.  
We used to have business case for ERVR and a 3 year payback rule so if it will tags longer than 3 years to be better off due to your redundancy they could reject.

  https://www.unison.org.uk/get-help/knowledge/pensions/local-government-pension-scheme/95000-cap-lgps/

Paz2021

Thank you Poppy9.
Oh that's very disappointing if this is the case -

 "I believe LGPS rules changed last November and the authority now has to offset the pension strain cost with your redundancy payment.  This means instead of say £15k redundancy, pension with mo reduction did taking early and pension lump sum from old scheme you only get the last  two and the balance of any redundancy money after they offset their costs"

I thought this had been taken into account as part of the abolishment of the 95k cap.

Thanks again

Poppy9

Paz2021 said:

Thank you Poppy9.
Oh that's very disappointing if this is the case -

 "I believe LGPS rules changed last November and the authority now has to offset the pension strain cost with your redundancy payment.  This means instead of say £15k redundancy, pension with mo reduction did taking early and pension lump sum from old scheme you only get the last  two and the balance of any redundancy money after they offset their costs"

I thought this had been taken into account as part of the abolishment of the 95k cap.

Thanks again

If you are in union speak to them about it.   LA I worked for suspended ERVR last year due to these changes & challenges.  

Silvertabby

The employer strain costs in the case of  redundancy at 55 for someone on £32K with 35 years service will be huge.  Quite possibly as much as £150K.  

As unfair as it sounds, the strain costs are definitely a factor when employers make their redundancy selections.

Or are they saying that you can apply for voluntary redundancy, just that they can't give you an automatic acceptance because all things - including the strain costs - will have to be considered?