Final Salary Pension / Final Remuneration / Emoluments / Voluntary Redundancy

Lawrence631

The trust deed and rules for my pension defines "Final Remuneration" as the total emoluments averaged over 3 year but disregarding any sums chargeable to tax under Section 148 of the Income and Corporation Taxes Act 1988. On taking voluntary redundancy in 2001 i received  £50k (£31k payment in lieu if notice + £19k - service element / redundancy). The first £30k of this payment was tax free. Does any element of these payments qualify as emoluments, particularly the £30k tax free element?

Marcon

Lawrence631 said:

The trust deed and rules for my pension defines "Final Remuneration" as the total emoluments averaged over 3 year but disregarding any sums chargeable to tax under Section 148 of the Income and Corporation Taxes Act 1988. On taking voluntary redundancy in 2001 i received  £50k (£31k payment in lieu if notice + £19k - service element / redundancy). The first £30k of this payment was tax free. Does any element of these payments qualify as emoluments, particularly the £30k tax free element?

No. An emolument is payment you receive in return for work carried out.