Property Owned As Tenants In Common
Law2 mins ago
4 day week
3 Answers
I'm on a final pension salary, aged 53 and have told my employer that I'd like early retirement or redundancy. This came about due to current climate and laying people off in other departments. I've been with the company 18 years.
I work often 12 hrs a day ( no extra pay) and they don't want to let me go due to amount of work I do ( friend is HR Director and we joke on this matter together)
They are now asking I do a 4 day week and I know they know I will still complete my weekly workloads at home as I usually do....
A 4 day week is welcomed - I will NOT work from home and work will suffer but would this affect my final pension salary and can anyone advise alternatives
Many thanks
I work often 12 hrs a day ( no extra pay) and they don't want to let me go due to amount of work I do ( friend is HR Director and we joke on this matter together)
They are now asking I do a 4 day week and I know they know I will still complete my weekly workloads at home as I usually do....
A 4 day week is welcomed - I will NOT work from home and work will suffer but would this affect my final pension salary and can anyone advise alternatives
Many thanks
Answers
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Regarding the 4 day week concept, I suggest that you be very clear about the arrangement of the days you are at work and the days you are not - something along the lines of 'I don't work on Fridays' and have it tied to the letter that sets things out. Otherwise one ends up with the company de facto determining which day you don't work.
Also I see an problem with the hours you do now - are you clear which parts of the current job you do which you would not do.
Regarding Final Salary schemes, you may need professional advice to make sure the company pesnion trustees understand it correctly - especially if it is a one-off.
The way it should be done is that the basis from which your pension is eventually driven (the final salary on retirement) does NOT change, but you end up earning 0.8x of this basic salary. Each year of work under this changed regime then earns you another 0.8 of a Qualifying Year to add to the number required to earn the maximum (often 2/3rds) pension. What clearly must not happen is that the basis of the final year baseline pay gets changed.
Also I see an problem with the hours you do now - are you clear which parts of the current job you do which you would not do.
Regarding Final Salary schemes, you may need professional advice to make sure the company pesnion trustees understand it correctly - especially if it is a one-off.
The way it should be done is that the basis from which your pension is eventually driven (the final salary on retirement) does NOT change, but you end up earning 0.8x of this basic salary. Each year of work under this changed regime then earns you another 0.8 of a Qualifying Year to add to the number required to earn the maximum (often 2/3rds) pension. What clearly must not happen is that the basis of the final year baseline pay gets changed.
I recommend that you take the time to gen up on the 'rules' of your pension scheme. It isn't that difficult.
The general gist of your scheme is that your final annual pension per annum (at initial start of drawing it) is driven by a combination of the number of years you've been in it times the final salary in the last year of your employment. (OK, the last bit isn't that simple, its often the last year, or the average of the last 3 years, or some other calc).
To get the maximum (often 2/3rds of the final salary) you must have 40 yrs in the scheme - less yrs is ratioed down.
What you must avoid in those final years of working is anything that inadvertantly reduces the numerical value of the salary - because it drives the calculation.
The general gist of your scheme is that your final annual pension per annum (at initial start of drawing it) is driven by a combination of the number of years you've been in it times the final salary in the last year of your employment. (OK, the last bit isn't that simple, its often the last year, or the average of the last 3 years, or some other calc).
To get the maximum (often 2/3rds of the final salary) you must have 40 yrs in the scheme - less yrs is ratioed down.
What you must avoid in those final years of working is anything that inadvertantly reduces the numerical value of the salary - because it drives the calculation.
1 to 3 of 3
