www.iva.co.uk

Dear all,

1) Could some one tell me If one is MADE to retire early,is lump sum received considerd a windfall?

2) Also can one defer taking the lump and it in the pension fund?

Thanks.

Hara.

Hi Hara,

I thought with the age laws now, that you couldn't be made to retire early unless there was a valid reason (like medical).

You would have to check the small print on your pension, but I know with mine I'm sure I don't have to take the lump sum, I can just have it all as pension.

Mine is local authority.

Dear Kallis,

Thanks for the prompt reply.

It is part time job. one day only. for the past 17 years. I have another job.

There were a couple of issues. It was felt that I am deskilled as I work only one day. As I was put under immense personal pressure I had to divulge my financial position. But nothing seem to have made a difference. I could not afford membership of trade union membership,I had to cancel it last year.

Because of a few issues they feel that they have a strong case to put pressure on me to retre from that job.

Financially I depend on that job to make ends meet.

If I made to retire early can I defer taking lump sum ?

What is this age law?

Thanks.
Hara.

You could try looking at this

http://www.opsi.gov.uk/si/si2006/20061031.htm

It's a bit long winded but that is the act.

Or this

http://www.direct.gov.uk/en/Employment/ ... /index.htm

You could also have a word with CAB as you are not in a union. They may be able to help you.

I would certainly speak to the pension provider though about whether you can defer the lump sum.

Dear Kallis,

It is not because age that they are suggesting retirement, they may argue it is a performance issue.

If I do not want retire they may make me reudant.

What I would like to know is,if I have take lump sum is it considered a windfall?

Thanks.
Hara.

Sorry hara, misunderstood that bit.

I can take my pension in 5 years time and my IVA will still be running if I can't remortgage. I have been told that it will be classed as a windfall and would probably need to be paid across to my IVA.

Needless to say, I shall be carrying on at work for a while!

I think it is wrong that they can boot you out like that, but check with your pension department, you may be able to defer it.

Hi hara, This is a similar thing that happened to me in the end - They didnt renew my contract at work when it came to an end and ended the post. They then retitled the job and advertised it at a much lower salary £12k less. Even though they offered me first grabs at the job on some sort of preferential transfer scheme there was no way I was going to take it (it was exactly the same job).

It wasnt a performance issue either just a cost cutting one !

Im sure the CAB will help but I would still talk to the union - they might still agree to help even if youve left.

I totally agree with Kallis that I think this sort of thing is wrong
but Ive seen it done like this many times.

Althought I was a bit bitter at the start it ended up actually opening a whole new better life for me with far more opportunities so it can be something to be positive about.

The new act about age discrimination means that you can't be discriminated against - eg if you go for a job interview they can't simply turn you down because of your age, job adverts can't be age specific. However that act does not cover retirement age and companies can still expect you to retire at 65 - they don't have to keep you on. There is a challenge to this at the moment in the European court but not judgement yet.

There is other legislation coming in at the moment around encouraging an older workforce and partial retirement so people can work longer if they want to. Some companies already operate this - I know some companies will let you carry on until 70, I can carry on forever ......!! not that I would want to but I don't think my mortgage will ever be paid off anyway.

To summarise then - although it is illegal to discriminate on age grounds retirement situation is excluded from this and it is down to individual companies how they interpret - flexible working.