Sue Perfluous is made redundant from a voluntary-aided school on August 31. She has taught there for 10 years and before that was at a college for five years. She is 46. Her local authority pays redundancy based on actual salaries. Sue’s gross weekly pay (on spine point 10) is Pounds 399.52. Her redundancy payment will be based on 15 years’ continuous service. She will receive:
Statutory redundancy pay.....................Pounds 3,587.50 (10 x 1 week’s pay + 5 x 1.5 weeks’ pay at Pounds 205) Discretionary redundancy pay ............Pounds 3,404.10 (based on her actual weekly pay) Total (free of tax).................................. Pounds 6,991.60 Sprightly 63-year-old Gerry Attrick is facing redundancy after a long teaching career. He worked for five years with a county council, then moved to an independent school for five years, taught in further education for 16 years and has been employed in a grant-maintained school for the past two years. He is paid on spine point 12 at Pounds 457.05 gross per week. Gerry is taking premature retirement with two years’ enhancement.His redundancy payment will be based on 18 years’ service, because the period spent teaching in an independent school broke his continuity of employment.Gerry will receive:
Statutory redundancy pay...........................Pounds 5,535 (18 x 1.5 weeks’ pay at Pounds 205) Discretionary redundancy pay................. .. Pounds 6,805 (based on his actual weekly pay) TSS pension lump sum (tax free).............Pounds 25,024 Employer’s pension enhancement lump sum ...................................................................... Pounds 1,787 Total:..........................................................Pounds 39,151 Gerry will not be taxed on this payment, as the total of the payments (excluding his basic lump-sum pension entitlement) does not exceed Pounds 30,000.
Dee Parting is a 53-year-old deputy head at a boys’ preparatory school. Following a reorganisation, she is offered a termination package of her redundancy entitlements plus an ex gratia payment of Pounds 28,000, and premature retirement with five years’ enhancement. She earns Pounds 32, 000 per year and has worked at the school for 24 years.
Her redundancy payment will be based on the maximum 20 years’ service.
She will receive: Statutory redundancy pay:......Pounds 5,330 (8 x 1 week’s pay + 12 x 1.5 weeks’ pay at Pounds 205) Ex gratia termination payment.......Pounds 28,000 TSS pension lump sum......Pounds 28,800 Employer’s pension enhancement lump sum.........Pounds 6,000 Total.......... Pounds 68,130 Dee will be taxed on Pounds 9,330, the amount by whichher total termination payment (excluding herbasic lump-sum pension entitlement) exceeds Pounds 30,000.
