This just started to be 'a thing' during my time as a LGPS administrator, usually with smaller employers who don't have the funds to pay redundancy AND strain costs.
Things may have changed over the past few years, but the handful of cases I dealt with were voluntary (as opposed to compulsory) redundancy, as seems to be the case here.
Hi Silvertabby. Yes I have been offered voluntary redundancy. My rounded up figures are VR £63,500, Strain costs £62,000. This means my actual VR payment is £1,500. Of course I get an unreduced pension and lump sum which is good. I guess if my organisation had to pay the VR and SC themselves then it would cost them £125,500 and I would not have received a VR offer at all. The procedure is explained in our Redundancy Policy so not a surprise, just wondered if it was common practice.
Hi Silvertabby. Yes I have been offered voluntary redundancy. My rounded up figures are VR £63,500, Strain costs £62,000. This means my actual VR payment is £1,500. Of course I get an unreduced pension and lump sum which is good. I guess if my organisation had to pay the VR and SC themselves then it would cost them £125,500 and I would not have received a VR offer at all. The procedure is explained in our Redundancy Policy so not a surprise, just wondered if it was common practice.
Apparently, it's getting to be so, particularly with the smaller employers.
Prefer not to name the body i work for sorry. This the gist of the policy· If
there is a pension strain cost to the employer, this is paid for out of your VR payment. If VR payment is not sufficient to cover the pension
strain then we as the employer will pay the difference. If
the pension strain is less than the redundancy payment then the individual gets
the remaining VR payment.
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Things may have changed over the past few years, but the handful of cases I dealt with were voluntary (as opposed to compulsory) redundancy, as seems to be the case here.