LGPS and voluntary redundancy

Paz2021

Thanks Poppy9 for your positivity!
I am understandably fed up re the outcome, especially on the grounds of the pension strain cost being too much to fund. 
Thank you, I will ask for a business case regarding refusal of my application.

Poppy9

This is where I would have said speak to your union but after being in union for almost 40 years they didn't do much when staff asked for help to protect their rights.  I was so appalled at colleagues losing up to to £10k off their salary due to job evaluation and unions letting it happen I resigned.    I was lucky I got out on ERVR .  If you have a good rep though they might help.

Paz2021

I left my union 3 years ago after paying in all my working life.... similar reasons to yours.

Silvertabby

Paz2021 said:

Silvertabby said:

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.

You were right Sivertabby!
I received their decision today...

"I'm sorry that I couldn't give you the news you may have been hoping for today but please send me a request for information regarding severance if that is the route you wish to take and I will act as intermediary in any discussions."

I have no information on severance payments, can anyone shed any light compared to VR payments.  

Thank you

Severence pay is usually in conjunction with redundancy, yet it sounds like redundancy is off the cards because they are not willing to pay the pension strain costs.

Are they by any chance offering you a cash payment in return for your resignation?  If so, and you take your pension straight away (from age 55) it would be subject to full reductions for early payment. 

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

Paz2021

Thanks Sivertabby 

I had applied for VR.

I received my pension redundancy estimate last week.

At the same time,  I had a meeting with my manager and VR was declined on the grounds of the psc being too much. 

From my understanding so far,  severance is being offered in exchange for my resignation.


In the meantime,  I would appreciate feedback on the estimate I received...

1. Is it correct? I'm sure their figures are,  however always best to check!

2. I am planning on discussing the costs attached to keeping me against my psc.

How much would it cost them in total to keep me, including their pension contributions etc?

Would it therefore be cost efficient for them in let's say... 3/4  years?
 ie. by letting me go on the grounds of VR now they would claw back my VR costs in that time

I would hugely appreciate your thoughts on the estimate I received, but completely understand if you are unable to.

Thank  you

Silvertabby

Paz2021 said:

Thanks Sivertabby 

I had applied for VR.

I received my pension redundancy estimate last week.

At the same time,  I had a meeting with my manager and VR was declined on the grounds of the psc being too much. 

From my understanding so far,  severance is being offered in exchange for my resignation.

The HR manager at county dealing with this is now on leave until April 13th so I will find out more then. 

In the meantime,  I would appreciate feedback on the estimate I received...

1. Is it correct? I'm sure their figures are,  however always best to check!

2. I am planning on discussing the costs attached to keeping me against my psc.

3. How much would it cost them in total to keep me, including their pension contributions etc?

Would it therefore be cost efficient for them in let's say... 3/4  years?
 ie. by letting me go on the grounds of VR now they would claw back my VR costs in that time

I would hugely appreciate your thoughts on the estimate I received, but completely understand if you are unable to.

Thank  you

1.  Redundancy calculations are a relatively straightforward process, and so are probably correct.  Have you compared your own estimate with last year's annual benefit statement?  They should be similar - just add on another year of CARE accrual.

2.  It really depends on the psc, and if they are willing to pay it.  They may be able to pay the psc in annual instalments over up to 5 years, but the total cost would be more.

3.  That would be your salary, plus employer pension contributions (average 20%).

4.  You could try arguing that paying psc over 5 years would be 'cheaper' than paying your salary plus pension contributions.

Good luck!

Poppy9

3 your salary would be your salary plus pension and employers NI.  When I left in 2019 we were adding 35% as total on cost rate !   Pension contribution hit 25.4%!

Paz2021

Thanks for this information Poppy9, I've a few calculations to look at now. 

Paz2021

As VR is definitely off the cards due to the pension strain cost, today I've been offered 16 weeks severance pay!!!

Needless to say after 37 years service I'm obviously extremely disappointed!

Poppy9

Decline.  If they want to lose your post they will have to make you redundant even if they do via a restructure!