Jump to content
House Price Crash Forum
Sign in to follow this  
ken_ichikawa

Holy Crap!

Recommended Posts

Over at another forum people are discussing how to not pay tax on redundancy payments over £30K. We all thought he was some sort of director of a big company or something to get a £60K redundancy package....

He then floored everybody by telling us he worked in local government.

Ontop of this

He said

My bud who joined before 1987, is under a very different contract which means the lucky sod will get 6 years pay if he goes! Just over £200k!

Looks like many people are correct, redundancies in the public sector won't actually save ANY money at all for a very long time.... ergo the Magic printing press is THE ONLY SOLUTION, and its going all Cnago (btw my food inflation is 40% this month! The crappy noodles I eat went up to 11p a pack when before were 6p 40%+ inflation!)

Share this post


Link to post
Share on other sites

This may be true but has the 200K person been offered redundancy? And I don't think this story is across the board....

I spoke to a friend of the g/f's at the weekend - Kent CC - and they have planned 30% redundancy / lay-offs with minimal payouts - mostly people who have been employed recently - in the last few years; these are the people who will get very little.

Over at another forum people are discussing how to not pay tax on redundancy payments over £30K. We all thought he was some sort of director of a big company or something to get a £60K redundancy package....

He then floored everybody by telling us he worked in local government.

Ontop of this

He said

My bud who joined before 1987, is under a very different contract which means the lucky sod will get 6 years pay if he goes! Just over £200k!

Looks like many people are correct, redundancies in the public sector won't actually save ANY money at all for a very long time.... ergo the Magic printing press is THE ONLY SOLUTION, and its going all Cnago (btw my food inflation is 40% this month! The crappy noodles I eat went up to 11p a pack when before were 6p 40%+ inflation!)

Share this post


Link to post
Share on other sites

Too late, the ones who will leave already have the pension set in stone in their contracts. They may be able to change the T&Cs for new people but the current liability can't be reduced. The majority of those leaving will have full pensions which will need to be paid and will be a burden for the next 20 or 30 years.

Magic printing press time B)

Share this post


Link to post
Share on other sites

Too late, the ones who will leave already have the pension set in stone in their contracts.

Isn't their pension based on their length of service ? So if they sack a load of people say 3-5yrs into their employement that stops their pension pot from ballooning.

Sure, we can't do anything about the stuff that's already promised, but we can prevent promising even more

Share this post


Link to post
Share on other sites

The contracts can and are being changed.

Council I worked at:

Got rid of directors on a £1m payout between 3 of them

Changed redundancy rules from 1 month per year to 1.5 weeks per year of service

Got rid of 50 staff members

Last week in the local press announced redundancy terms were now statutary minimum with time spent working for other local gov employers no longer counting towards service length.

About to get rid of another 50 staff.

People (including me) think that employers can't change this conditions but they can and do.

Share this post


Link to post
Share on other sites

Over at another forum people are discussing how to not pay tax on redundancy payments over £30K. We all thought he was some sort of director of a big company or something to get a £60K redundancy package....

He then floored everybody by telling us he worked in local government.

if he worked for 20 years then up to say 2003 this will have been crap pay

the redundancy package is a perk to accomodate poor pay in the past, you can't have it both ways

if he was on a 35 k salary then that is 24 months or so rewdundancy package - generous but as I said with some justification. plenty of good private sector companies pay 1 month per year worked in redundancy too

Share this post


Link to post
Share on other sites

Too late, the ones who will leave already have the pension set in stone in their contracts. They may be able to change the T&Cs for new people but the current liability can't be reduced. The majority of those leaving will have full pensions which will need to be paid and will be a burden for the next 20 or 30 years.

nah - capping the inflation adjustment to 2.5% or CPI, whichever is lower, across the board. if someone takes redundancy at age 50 then, taking poension 15 years later, losing20%+ off pension (compoared to previous arrangement) is quite a lot over that time

Edited by Si1

Share this post


Link to post
Share on other sites

Yes, but will this happen? Has this sort of thing been agreed?

I think it was in the last budget? don't know how cast in stone that is tho'

Share this post


Link to post
Share on other sites

I don't think you can offer selective voluntary redundancy ie to exclude the people who would get the high payouts. If they layoff the recently employed that will save some money but what about the ongoing pension liability as this will still be there.

I agree about the pension liability being a problem but as Si1 says there are savings.

And I was describing a situation where a council is not providing these redundancy packages (high ones); Timak also suggests the same. What I am trying to paint is a more rounded picture of what is happening; i have no doubt some of the packages will seem (and will be) too high BUT for every example (headline grabbing) such as the OP's there will be dozens of examples as myself and Timak have described. Just balancing out the debate.

Share this post


Link to post
Share on other sites

I think it was in the last budget? don't know how cast in stone that is tho'

The proposal is for public service pension indexation to move to CPI instead of RPI. There is no proposal for indexation to be the lesser of 2.5% or CPI. The same formula will apply to the SERPS (and similar) components of the State pension, and to most state benefits.

The basic state pension is to be indexed by the GREATER of 2.5%, CPI or wage inflation (RPI instead of CPI in 2011).

Share this post


Link to post
Share on other sites

Too late, the ones who will leave already have the pension set in stone in their contracts. They may be able to change the T&Cs for new people but the current liability can't be reduced. The majority of those leaving will have full pensions which will need to be paid and will be a burden for the next 20 or 30 years.

Why not introduce a windfall tax.

90% of any pay-off over £30,000.

Public-sector workers are all in favor of higher taxes (or is that just for other people?)

Share this post


Link to post
Share on other sites

The proposal is for public service pension indexation to move to CPI instead of RPI. There is no proposal for indexation to be the lesser of 2.5% or CPI. The same formula will apply to the SERPS (and similar) components of the State pension, and to most state benefits.

The basic state pension is to be indexed by the GREATER of 2.5%, CPI or wage inflation (RPI instead of CPI in 2011).

my bad! thanks for the kind correction :)

Share this post


Link to post
Share on other sites

The contracts can and are being changed.

Council I worked at:

Got rid of directors on a £1m payout between 3 of them

Changed redundancy rules from 1 month per year to 1.5 weeks per year of service

Got rid of 50 staff members

Last week in the local press announced redundancy terms were now statutary minimum with time spent working for other local gov employers no longer counting towards service length.

About to get rid of another 50 staff.

People (including me) think that employers can't change this conditions but they can and do.

I can confirm this. Missis works for a consultancy seconded to a council in the north. Terms and conditions are being changed.

There is nothing carved in stone.

Share this post


Link to post
Share on other sites

Looks like many people are correct, redundancies in the public sector won't actually save ANY money at all for a very long time.... ergo the Magic printing press is THE ONLY SOLUTION, and its going all Cnago (btw my food inflation is 40% this month! The crappy noodles I eat went up to 11p a pack when before were 6p 40%+ inflation!)

Just to make you feel REALLY bad, that's actually 83% inflation !!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.