General Chat

Just wondering if anyone on here has had or taken Voluntary Severance?
I have been offered it, so I completed the form and now have to wait & see what they will offer me.
If they offer me say 5k and any holiday or sick pay pay what then happens to my pension?
Can i start receiving monthly payments? Obviously it wont be as much as it would be if i was 67 but i need some income to live on.

Have spoken to union and they will assist me once i hear back.
But I have no knowledge of work pensions only private ones.
Anyone with any knowledge please?

Thanks
Florence in the hebrides

There's lots of information via google Florence61 - just put in Voluntary Severance.

It includes a redundancy calculator to instantly calculate your statutory entitlement, but your work may give a higher amount than that.

From what age are you allowed to receive a pension under your works scheme, may make a difference rather then eeking out the lump sum until you reach that age.

This seems a decent site (amongst others) for an overview -

https://www.reed.co.uk/career-advice/voluntary-redundancy-what-are-my-rights/

and
https://www.citizensadvice.org.uk/work/leaving-a-job/redundancy/voluntary-redundancy/

Thanks greyghost

Florence in the hebrides

I did see the calculator on the Gov site but the 1st question is what date were you made redundant and i havent been so cant use that.
I can access my pension at 55 but just not sure how long does the pension last.

With a private pension, you have a pot.You decide your monthly amount, that determines how many years it will last or you can buy a pension opt for a lower amount which lasts until you die.

I shall just have to wait & see what they offer me and then get advice.
I was just seeing if anyone on here had been in my position.
Thanks for your help though, much appreciated

Florence in the hebrides

Don't forget, if you can afford it, it may be worth paying extra years into your NI pot - speak to the pensions department for a pensions calculation as to how much you'll be due at age 67 and ask if there's anything you can do to improve that amount.

https://www.gov.uk/check-state-pension?step-by-step-nav=c0ff9296-e91e-40d1-97bd-008026e90426

You can do it online, but can also ring and ask them to do it for you and at that time confirm they'll be replying with a "what you could do to improve it" paragraph

They may offer you an option of taking a lump sum and then when you reach your Works retirement age you will receive a monthly pension, which will go up a small amount each year the pension is until death. If you take the lump sum now the monthly amount you receive when you reach the retirement year will be less. This is what i was offered my occupation had a final salary pension.

My full works pension isnt available until im 67 and im 59 just now. I need an income to pay my rent etc... Anyway the form has been acknowledged and they say applications will be considered after 11 jan 21 so nothing more i can do until then.

Thanks for all your suggestions, much appreciated

Florence in the hebrdes

There are a few 'ifs and buts' in what you are looking for.

Before 11Jan21 I suggest that you determine an annual budget - assuming that you have not done one. [ rent, utilities, council tax, food, insurances, TV licence, phone bills, etc]. Thus what cash you will need to live on.

Many works pensions have their own rules as to how you can access your 'pot' and just how much commutation there is if you request payments to start prior to the NRD (Normal Retirement Date).
I retired 3 yrs early so my pension was reduced: slightly. But at the moment you would be retiring 8yrs early so there is likely to be a large commutation applied.
Those rules/terms also govern how annual escalation is calculated. In my case the pension is broken into three chunks. One piece has RPI applied, one piece has CPI applied and one piece has nothing applied. And the latter will continue to have nothing applied because the works pension fund is in deficit. Sadly that is the largest piece.

There are other things to consider, but presently I would ask just one question:-
Are you in good health?
I asked for early retirement and got it. But one of my fellow long service employees was off sick: long term. And while sick he could not be made redundant. When the company sickness payments were depleted (from memory after he had been off 6 months) a company insurance backed payment system kicked in. Payments were just sufficient for him to live on. So he did not need to access his pension until his NRD.

Inky1. i have been off sick since 25 sep last year. I had major heart surgery in April and 2 strokes in Jul.
I had recovered and was just beginning a phased return when new council rules kicked in and because i cant wear a face mask, i was told to stay at home ufn.
I am waiting for a decision from HR. They have said there are no other employment opportunities I can do from home.
It was coincidence that an email went out to all non teaching staff inviting those near retirement age or those on long term sick to consider Voluntary severance.
I have been on a very tight budget so I know exactly what my income and expenditure is already.

I know if I take the pension now it will be about half of the amount i would get if i was 67, however, i need an income.
I am unlikely to find any employment here given where i live and the current climate. i have used up all my sick pay and holiday pay over the last year once my half pay ran out.

You are correct, they cannot make me redundant as its not my job they are getting rid of. Its because my situation dictates I cannot wear a facemask.
I have a union rep for advice but until i get word from HR now, i just have to be patient and wait.

Florence in the hebrides

Sounds more like you should be taking early retirement due to ill health. I worked in education and the “works” pension in those circumstances wasn’t reduced by a percentage as it would have been if taking early retirement. If your pension folk have a website the full conditions should be on that. Alternately just phone them and tell them your circumstances. I took voluntary severance but was able to collect my full works pension straight away as I met the age and service conditions. Hope this helps.

Thanks, I will give the Pensions dept a ring and see what they say.

But I am now fit to work, so retiring me on the grounds of ill health when I have recovered ,dont think would be ok.

Florence in the hebrides

Florence, if you have a note from the doctor stating that you can not wear a face mask does that not absolve you from wearing one so any employer has to accept that ruling?

If you have accepted severance, does that mean any benefits will be those of an unemployed person after the required number of weeks of unemployment? It used to mean that unemployment benefits will not kick in if you have savings over the maximum allowed by the government or a weekly income exceeding the allowable amount that qualifies you for benefits?

I did not have a health problem, but after reading what rootgatherer states above I did a couple of google searches.
Don't know if your pension arrangement comes under 'teacherspensions'? But the wording is quite clear:-

https://www.teacherspensions.co.uk/members/working-life/life-events/ill-health.aspx

And there are other more general statements:-

https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/ill-health-retirement#:~:text=If%20you%20cannot%20work%20any,taking%20an%20ill%2Dhealth%20pension.&text=A%20serious%20ill%2Dhealth%20lump,you%20have%20available%20lifetime%20allowance.

That's a long link that took me directly to my search for 'ill health retirement'

But you are now fit for work. You need to get advice as to what benefits (if any!) you will be entitled to if a) You are MADE redundant, or b) You ACCEPT voluntary redundancy.