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.

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Sign the petition – defend the union

Unite members across Fujitsu Services Limited in the UK are fighting over job security, for union recognition, against victimisation of reps, and over pay and pensions. Members nationally took industrial from 28 February including 15 days of strikes and ongoing action short of strike, after 12 days of local strikes in Manchester.

INDUSTRIAL ACTION IS CURRENTLY SUSPENDED but members have voted by 92% to reject a company offer.

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

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