Hi Joe
Thanks for your reply. I know that the SCSB calculation must take into account the present value of any tax free lump sum receivable under the employer's pension scheme, but my question is whether the €200k limit on redundancy is reduced by the amount of the pension lump sum.
For example, if someone with 35 years service and average remuneration of €150,000 per annum over the last three years was receiving a severance payment, their SCSB calculation (prior to adjustment for any pension lump sum would be) €150,000 x 25/15 = €350,000.
If their pension lump sum has a present value of €200,000, this would leave a net SCSB of €150,000. Assuming they don't waive their entitlement to a pension lump sum, can they receive €150,000 tax free severance payment in addition to the €200,000 pension lump sum?