vr and pension ??????

[billyboy123]

hi all looking for some imfo for a friend hes been with royal mail 16 yrs if he was to take vr what happens with his pension ? thanks in advance hes 32

[RobertT]

It will be deferred and he will be able to take it from age 58 onwards.

[baldrick]

Bear in mind that it might not be worth much in 26 years time. A friend of mine left RM with 11 years service 25 years ago.
He gets an annual pension statement. The last one showed that he would get £300 a month pension.

[billyboy123]

thanks very much

[RobertT]

Bear in mind that it might not be worth much in 26 years time. A friend of mine left RM with 11 years service 25 years ago.
He gets an annual pension statement. The last one showed that he would get £300 a month pension.

That pension would have been increasing with inflation every year for the last 25 years, it would be worth a lot less if it hadn't of been.

[cheesecake]

i know people who have 30 plus years in Royal mail and have taken pension at 55 but does this affect what vr they could get.

[baldrick]

i know people who have 30 plus years in Royal mail and have taken pension at 55 but does this affect what vr they could get.

No it doesn't. VR payment is based on age and length of service. If they are still paying into any RM pension scheme - and they might be paying into the new 'Workplace Pension' scheme introduced last year unless they opted out - they would get any pension due based on their contributions, slightly enhanced plus 26 weeks VR.
If they have opted out of all RM pension schemes, with 30+ years service and if they are over 57 years old they would get the maximum 104 weeks VR.

[cheesecake]

You have to pay tax over 30 thousand don't u?

[RobertT]

You have to pay tax over 30 thousand don't u?

Yes you pay tax on anything over £30,000 on a VR payout. But it is possible to avoid tax on that bit too by paying it into a pension, as mentioned here:
http://www.royalmailchat.co.uk/communit ... 27&t=64256" onclick="window.open(this.href);return false;

[micky]

how about if you're aged 55 and opt for early payme

[micky]

what about if you're aged 55, take pension payment early, make no further pension contributions but remain employed at Royal Mail: does this effect any potential redundancy payment? would any potential redundancy payment be greater in comparison if I was to take the NRA 60 and continue paying into the NRA 65 pension?

[baldrick]

what about if you're aged 55, take pension payment early, make no further pension contributions but remain employed at Royal Mail: does this effect any potential redundancy payment?

If you have taken your pension and you are not paying into an RM pension scheme you would get the mtsf2 VR payment based on your age and length of service.

would any potential redundancy payment be greater in comparison if I was to take the NRA 60 and continue paying into the NRA 65 pension?

If you are still paying into a RM pension you would get that pension (slightly enhanced) plus 26 weeks VR payment.

[micky]

thanks for your quick reply.

sorry but i don't know what the mtsf2 VR payment is. can you explain please?

[baldrick]

sorry but i don't know what the mtsf2 VR payment is. can you explain please?

mtsf2 is the redundancy terms agreement. I think it stands for the 'Managing The Surplus Framework' (2 because it was amended), it sets out the amounts of Voluntary Redundancy (VR) payment that would be paid, based on age and length of service, which is 26 weeks VR payment with a minimum of 2 years service, to a maximum of 104 weeks.

According to the mtsf2 VR Ready Reckoner:
At 55 with 20 years service the VR payment would be 101.25 weeks.
At 55 with 21 or more years service the VR payment would be 104 weeks (the maximum).

[micky]

thanks for the reply can i ask if i take evr and my pension is enhanced is there a certain age i can take it or can i take it straight away i am 55 now