Pensions, TUPE, redundancy and tax

In May 2011 the trustees of the ICL DB Pension Plan announced changes to the “Early Retirement Factors” (ERFs) which apply to members drawing early pensions after leaving Fujitsu. The ERF is the amount per year by which your pension is reduced if you draw it early.
To avoid the increased ERFs (last announced as 5% per year, rather than 3%) many members can choose to draw an immediate pension the day they leave Fujitsu.
That’s a big enough decision if you’re just planning your retirement. It seems particularly unfair to lose out in this way if you are forced out through TUPE or redundancy. If you are potentially due to be made redundant or TUPE transfer out of the company it is important to clarify your position with the pensions department and get financial advice in good time so that you can make the necessary arrangements with the pensions department before you leave the company.
There’s also a new statement from the trustees about tax. While it normally would only interest very high earners, anyone being made redundant and looking to sacrifice some or all of their redundancy package into their pension fund should consider the implications.

Posted in news
Sign the petition – defend the union

Unite members working for Fujitsu Services Limited in the Manchester bargaining unit have voted for more industrial action over compulsory redundancies, victimisation of reps and breaches of agreements. This follows 27 previous days of strike action.

Strike days announced so far are:

  • Wed 24 – Fri 26 Jan 2018
  • Tue 30 Jan 2018
  • Thu 8 Feb – Wed 14 Feb 2018

Further information is available here including a downloadable appeal for support leaflet and how to donate to our strike fund.

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