Voluntary redundancy - Pension

Snot

I'm soon to take redundancy and have a question on the company pension contribution.
They have to give me 3 months notice, so they are intending that I work 1 month and then finish up and they will pay PILON for the remaining 2 months. But they are saying will don't pay the DC pension contributions for the 2 months of PILON as I would no longer be an employee.
Is this correct ?

lincroft1710

In the circumstances you cease being an employee as soon as you stop working which would be on the final day of the agreed one month's notice. With PILON you effectively get paid for not working.. 

MaidaVale3499

lincroft1710 said:

In the circumstances you cease being an employee as soon as you stop working which would be on the final day of the agreed one month's notice. With PILON you effectively get paid for not working.. 

......but the OP would in effect "lose" 2 months of Employer DC pension contributions?

lincroft1710

MaidaVale3499 said:

lincroft1710 said:

In the circumstances you cease being an employee as soon as you stop working which would be on the final day of the agreed one month's notice. With PILON you effectively get paid for not working.. 

......but the OP would in effect "lose" 2 months of Employer DC pension contributions?

If the rule is that Employer DC Pension Contributions cease when employment ceases then yes.


PILON allows that as soon as a former employee has ceased their current employment, they can immediately start working for another employer and presumably be paid EDCPC and still be getting their PILON money.


You will also note the thread heading "Voluntary Redundancy". VR is not recognised in employment legislation so employer and employee are free to agree VR terms. Effectively it is a resignation situation with enhanced benefits for the employee.