Differing redundancy offers!

I have worked for my employer for just over 30yrs, and they are currently looking for voluntary redundancies.
They are offering most employees an enhanced offer, however those on the final salary pension (of which I am) are only being offered statutory.
I am only 52, so cannot access my pension yet if I go now!

Colleagues with half my service are being offered around £10k more than me, to go voluntarily..
I am being offered statutory to take the offer, and if don't apply but then get forced out anyway, I will also still get statutory, so will be no worse off, whereas if others don't take the offer and are then made compulsory down the road, they will lose maybe £15-£20k by dropping from the enhanced offer to statutory.
 
There is an incentive for them to apply and go, and no incentive at all for me to apply, as I will be no worse off by holding tight! 

Why have they done it this way?
Is this done purposely just to dis incentivise people like me from applying, meaning I should have more chance of keeping my job??

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546
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    If the DB scheme is underfunded. Then even after you have left. The employer still has an ongoing liability to pay. For those not in the DB scheme all ties are cut. For the company there's no further cost to bear. 
  • eamon
    eamon Posts: 2,319
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    It's not an attractive offer unless you are able to access your pension. In your shoes I wouldn't volunteer. In the meantime find out all you can re the pension scheme, there have many changes made in the last few years. Ideally talk to an independent financial advisor.
  • Grumpy_chap
    Grumpy_chap Posts: 14,413
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    It sounds like the variance is not personal as it is the treatment of two clear groups (DB or DC pension).  As mentioned by others, the group with DB pension retain a future cost liability on the business that the DC group do not.

    If you are only being offered statutory redundancy, there would be no benefit to volunteering and / or signing a "settlement agreement" at any point.

    The two factors that might make volunteering logical even for only statutory redundancy is if you thought the company would fail totally so any future statutory payment could not be met (there is a Government scheme for failed companies but not sure of the details) OR you want out anyway.
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