I have been informed that I will be made redundant next summer (office closing down).
We're currently in a consultation phase with the employer and they are offering me a bonus to stay on until the office closes (in order to facilitate an orderly wind-down of the company), plus a lump sum upon redundancy. This redundancy lump sum is quite low by industry standards - works out at about 2 weeks per year of service.
However, I believe it would be preferable to receive this bonus as part of my redundancy lump sum - it would also cost my employer less as they wouldn't have to pay PRSI on it. So there's a possible win\win situation here. I've been asked to run the numbers on this.
I'm looking at the SCSB calculation for redundancy lump sums and fully understand the (average salary/3) * years of service/15 part of the equation. The bit I have difficulty understanding is the pension lump sum amount that must be subtracted.
I've been a member of the staff DC scheme since I joined here. The employer makes 5% contribution. The current value of my fund is about €100k. I'm only in my 30s so would obviously not be retiring any time soon.
How do I calculate the lump sum value of this fund? Is it an easy x% number? Is it a Net Present Value type calculation?
Obviously it would be in my best interest if this lump-sum value could be as small as possible. Can anyone point me in the right direction as to how I would calculate this number?
We're currently in a consultation phase with the employer and they are offering me a bonus to stay on until the office closes (in order to facilitate an orderly wind-down of the company), plus a lump sum upon redundancy. This redundancy lump sum is quite low by industry standards - works out at about 2 weeks per year of service.
However, I believe it would be preferable to receive this bonus as part of my redundancy lump sum - it would also cost my employer less as they wouldn't have to pay PRSI on it. So there's a possible win\win situation here. I've been asked to run the numbers on this.
I'm looking at the SCSB calculation for redundancy lump sums and fully understand the (average salary/3) * years of service/15 part of the equation. The bit I have difficulty understanding is the pension lump sum amount that must be subtracted.
I've been a member of the staff DC scheme since I joined here. The employer makes 5% contribution. The current value of my fund is about €100k. I'm only in my 30s so would obviously not be retiring any time soon.
How do I calculate the lump sum value of this fund? Is it an easy x% number? Is it a Net Present Value type calculation?
Obviously it would be in my best interest if this lump-sum value could be as small as possible. Can anyone point me in the right direction as to how I would calculate this number?