Vr question

[Driver74]

If you are offered voluntary redundancy when you are aged between 55-60 and have not already taken your pension does anyone know how it works I know you get 6 months pay but is your pension enhanced if so by how much

[RobertT]

An enhanced pension is only offered if the total cost to RM is less than 2 years pay. If it is offered, you would get 37.5% of the pension you would have got had you continued to work until 65. I’m sure the full agreement is available on this site somewhere, but here is the important bit:

Voluntary Redundancy Cap

It has not been possible to persuade the business to further extend the suspension of the cap. With effect from 1st October this year(2015) the suspension will be lifted. This does not affect redundancy terms based on the multiplier but will limit the ability of members of the Royal Mail Pension Plan (RMPP) to receive immediate payment of enhanced pension to circumstances in which the total cost to the business does not exceed the equivalent of two year’s pensionable pay.

Where the combined redundancy and pension cost would exceed the equivalent of two years pensionable pay, cash compensation of 104 weeks pensionable pay will be offered instead.

If a redundancy exercise is already in progress and some employees have a last day of service before 1st October and some after, the current terms will apply throughout.

RM have plans to stop any payment of enhanced pensions(EVR) from 1st April 2018 as part of the closure to future accruals of the RMPP. From then on only VR would be available, which may also see a reduction in the amounts payable(subject to negotiation).

[Driver74]

Thanks for that the reason I'm asking is I'm 59 and there is a possibility of a vr I was wondering if I would be better taking my pension 10 months early and be eligible for 2 years pensionable pay