Tax on Redundancy

[henry]

A technical question. An employee will be made redundant. She has a decent income and will be getting € 350,000 in redundancy. The Standard Capital Superannuation Benefit (SCSB) calculation works best for her as she has a long service with the company. The SCSB is reduced by "the value of any tax free lump sum received/receivable under an approved pension sheme"

My question - does the term receivable mean receivable at the time of redundancy or does it mean receviable at any time in the future. This 'ee is in her 40's and is not entitled to receive a tax free lump sum from her pension fund now, but will be entitled to a tax free lump sum in the future.

Anyone come across this before ?

 

[jpd]

"Receivable" means receivable now or in the future.

Basically, SCSB is the tax-free amount of her redundancy payment but is reduced by the value of any future tax-free lump sums payable by a pension scheme. She can waive her rights to the pension scheme lump sum and this will increase the SCSB amount by the same. It's a trade off between a higher tax-free lump now or a getting a tax-free lump sum on retirement. Obviously, depending on the scheme benefits, the future lump sum is a known or unknown quantity ie is it fixed or will it grow over the years ?