While the method of augmentation is no longer available, people can still use the additional part of their redundancy payment (the amount above the statutory payment) to buy extra pension.
The big change is that the extra pension will be reduced if the person is being made redundant before their normal pension age.
We don't have a single calculator that people can use to work out the value of the extra pension they can buy – it will be a 2 stage process.
The extra pension can be calculated using the online calculator.
The member will need to fill in their personal details and put in the amount of the redundancy above the statutory amount in box 13 (b).
This will generate a quote for the extra pension.
A screen shot of this quote should be taken to feed into stage 2.
It is important that they don't use the 'get application' button as this will generate forms which aren't applicable in this process.
The reduction tables can be found on the pensions webpages.
The extra pension amount needs to be reduced by the percentage shown in the table. For example, if they are male going 5 years early, it would be a 25% reduction and if they were female going 5 years early it would be a 24% reduction.
Once they have this figure, they can make their decision and feed into the HR redundancy process in the same way as it has done up until now.