Pension and redundancy question.

[LHRFlightman]

Hi all.

I'm after some advice from those who work in an area that I'm totally unfamiliar with.

My company issued it's redundancy package yesterday. As 55 I have some options available to me.

Our redundancy policy on our intranet which was last updated in 2010 says;

"one year’s basic salary plus immediate unabated pension. An employee who opts for (up to) two years’ basic salary will become eligible for a deferred pension (subject to normal rules of abatement) and will be required to sign a formal agreement to confirm their choice.

The detail released yesterday (below) says the unabated pension is no longer an option due to a 1991 ruling, and I'm wondering the policy, which was amended in 2010, doesn't state that?

"For senior managers who joined the Pension Scheme on or after 1st April 1991, the maximum redundancy pay will be two year’s basic salary (in line with the above maximum cap) with a deferred pension. The right to an unabated pension is not available to this employee group due to a change in the pension scheme rules effective from 1st April 1991."

I could have taken voluntary severance which didn't have the pension option with it, but decided not to based on the company policy on our intranet. They have now moved the goalposts and removed what made that option different to VS and more attractive.

Thanks for reading and stay well.

[The Leaper]

LHRFlightman said:

the unabated pension is no longer an option due to a 1991 ruling,

. The right to an unabated pension is not available to this employee group due to a change in the pension scheme rules effective from 1st April 1991."

.

Your two statements are not the same thing. The first implies some form of legally required change. The second is simply a change to the company's pension plan rules that they have decided to make.

If the first is correct, ask for an explanation and a reference to the legislation that enforced the change in the pension plan provisions. If the second is correct you could ask the company why they made the change, ask for confirmation the change did not affect any rights accrued up to the date of change, and also why they made the change, plus ask for a copy of the announcement in 1991 telling members about the change.

R.

[Countdown]

@LHRFlightman

Would I be right in thinking that you joined the scheme after 1st April 1991?

Pension Trustees can and do make changes to the Scheme Benefits (normally to ensure that the Scheme stays solvent). It seems that your Intranet hasn't been updated but this isn't "legally binding" [you cant insist on an actuarially unreduced pension just because that's what it states on the Intranet].

Were you provided with a Pension Scheme booklet by HR when you joined?