Redundancy and Classic Lump sum

SimonSeys

Quick question for a friend (honestly it’s not me - I’m Premium)

if someone in Classic / Alpha is offered redundancy, and uses the redundancy payment to buy out the actuarial reduction, do they still get the Classic lump sum?  I think the answer is yes, but I’m looking for a reference. 

Si

hugheskevi

SimonSeys said:

Quick question for a friend (honestly it’s not me - I’m Premium)

if someone in Classic / Alpha is offered redundancy, and uses the redundancy payment to buy out the actuarial reduction, do they still get the Classic lump sum?  I think the answer is yes, but I’m looking for a reference. 

Si

Yes - redundancy and pension are separate. The funds from the redundancy, supplied by the employer, are used to buy out the actuarial reduction to the pension. Then the unreduced pension and lump sum are put into payment.

sammyjammy

Assuming the redundancy payment covers the buy out of course.

SimonSeys

sammyjammy said:

Assuming the redundancy payment covers the buy out of course.

I don’t think this is the case.  Under VR terms any shortfall is made up.