# JSB redundancy lump sum and mortgage settlement



## MeathCommute (5 Nov 2014)

Hi. I am getting a lump sum of 100k as a Voluntary Redundancy payment next month. I currently owe 65k on my mortgage. I intend paying off the mortgage when I get the money. 

Will the timeline to receiving the job seekers benefit be assessed on the 100k, or the 35k I have left, after I pay off the mortgage e.g. will my 9 weeks waiting time for job seekers become 1 week ?


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## Gerry Canning (5 Nov 2014)

You get your jobseekers benefit as of right ie not means tested.I think you get it for 7 mths .
You are then means tested , I think the k35 left  will have little nuff impact ,from memory you are permitted k20 before any impact.
Do n ot know timeline for accessing Job Seekers Benefit but it is important to sign on once you are redundant.
Good Luck.


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## MeathCommute (5 Nov 2014)

Thanks Gerry. I am currently looking at a 9 week waiting time because of the lump sum involved, but for €35k, the waiting time is 1 week. I can get it for 9 months, but the 9 week wait is part of that


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## Gerry Canning (5 Nov 2014)

Not my understanding on Jobseekers benefit that any lump sum means you have to wait.

Please recheck it out .

I am fairly sure on this , so if wrong I would like to know from  AAM people.


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## MeathCommute (5 Nov 2014)

Hi Gerry, I found a list of periods of disqualification from the Citizens Advice site

*Amount of redundancy payment**Period of disqualification*
€50,000.00 - €55,000 1 week 
€55,000.01 - €60,000 2 weeks
€60,000.01 - €65,000 3 weeks 
€65,000.01 - €70,000 4 weeks
€70,000.01 - €75,000 5 weeks
€75,000.01 - €80,000 6 weeks 
€80,000.01 - €85,000 7 weeks
€85,000.01 - €90,000 8 weeks
€90,000.01 and over 9 weeks

Site link - http://www.citizensinformation.ie/e...nts/unemployed_people/jobseekers_benefit.html


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## mrblues (5 Nov 2014)

Same covered here - http://www.welfare.ie/en/Pages/jajbfaq.aspx in section 5


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## MeathCommute (5 Nov 2014)

Thanks mrblues and Gerry Canning. I think the Welfare site has it -

In cases where the customer intends to use some of the redundancy payment to clear or reduce debts which have accrued, it is reasonable for Deciding Officers to offset these debts against the amount received before determining an appropriate period of disqualification, e.g. arrears of mortgage or rent, arrears of telephone/electricity/gas bills and debts to moneylenders


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## Gerry Canning (5 Nov 2014)

Mr Blues ; 

What I missed was the 55 year old threshold..
Methinks pay mortgage down asap.


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## mrblues (5 Nov 2014)

Gerry Canning said:


> Methinks pay mortgage down asap.



Yes, agree completely Gerry - pay mortgage first.

I was only aware as have been helping a friend who was in a similar position and the deciding officer insisted on the full 9 weeks before any payment was allowed.


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## kmick (5 Nov 2014)

That 100k is taxable in some cases - e.g. if you have received previously an untaxed redundancy payment. Also some companies auto deduct the tax on the basis that they dont know if you have previously received a payment. You should ask your company of they intend to tax at source.


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## 44brendan (5 Nov 2014)

> if you have received previously an untaxed redundancy payment


there is a time limit on previous redundancy payments. look up Citizens Advice!


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## MeathCommute (5 Nov 2014)

kmick said:


> That 100k is taxable in some cases - e.g. if you have received previously an untaxed redundancy payment. Also some companies auto deduct the tax on the basis that they dont know if you have previously received a payment. You should ask your company of they intend to tax at source.



Thanks kmick. The tax on the redundancy is low because I have 30+ years service and I qualify under the Superannuation Calculation, and they will tax this at source too


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