DB Pension & Redundancy

[MargeSimpson]

I have a fifteen year old Defined Benefit Pension.
I think I will be facing redundancy some time this year. Does the DB pension fund affect the redundancy pay out?
I'm kinda trying to decide whether to just quit or hold out. My employer is going through some radical changes right now and I'm not sure where I fit in any more.

 

[Bronte]

Does the DB pension fund affect the redundancy pay out?

No the two are not related. You are entitled to statutory redundancy based on years of service and there are some ceilings on it. If you're lucky your employer may offer more than statutory.

 

[Sunny]

No the two are not related. You are entitled to statutory redundancy based on years of service and there are some ceilings on it. If you're lucky your employer may offer more than statutory.

Not strictly true. If your employer is offering you a redundancy payment over statutory, the future tax free lump sum from a company pension scheme may affect the tax exempt amount of a redundancy payment. You can choose to give up your right to a tax free amount at retirement to increase the redundancy pay out but this is generally not advisable. Revenue have good information on this or else get financial advice.