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vr and pension ??????

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
heckster
Posts: 48
Joined: 03 Jul 2012, 18:01
Gender: Male

Re: vr and pension ??????

Post by heckster »

baldrick wrote:
heckster wrote:
baldrick wrote:
heckster wrote:But if Royal Mail offer you Voluntary Redundancy/Early Voluntary Retirement, and you accept it, the pension and lump sum are not reduced, they are slightly enhanced.

can someone confirm this is true?
It is in the Managing the Surplus Framework agreement (MTSF 2010). Fishtank has posted a link to that agreement in the Downloads section. Read it for yourself.
ive read all this document, I aint the brightest but I couldnt see any part where it says pension and lump sum isn't reduced if you are offered evr?
Appendix 6
Voluntary Redundancy Terms


2.4 EMPLOYEES AGED 55-64 WHO ARE MEMBERS OF THE PLAN

2.4.1 MEMBERS OF SECTION A/B OF THE PLAN (formerly POSSS)

Pension
Immediate payment of pension benefits accrued to date:

PLUS
An additional credit of 37.5% of the Reckonable Service (pro-rata according to the hours worked in the case of part-time employees) which would have been attained if service had continued to 65, provided that in no case shall Reckonable Service be increased to more than double its' length and subject to HMRC limits and the rules of the Plan.

.........etc
I don't understand any of that, does that mean I get my full pension with no reduction?
Tman
Posts: 4129
Joined: 21 Oct 2007, 09:57

Re: vr and pension ??????

Post by Tman »

See the bit in red above? It says "benefits accrued to date" PLUS the remaining years etc enhanced by 37.5% and that is how your pension and lump sum would be calculated.
Which part is so hard to grasp?