been offered the chance of Voluntary Severance with the company I've been at for almost 24 years, because the business section I work in has closed down. The money on the table is 55 grand, ultimately just under 10 grand of which will be payable to the tax man if I get another job and start earning again before the tax year is out. There's a reasonable chance of getting a start in the oil and gas industry offshore (according to my mate on the Buzzard), if I go and get my relevant survival and medical certificates. Been speaking to a couple of mates out there and obviously even though the money is good, it's a big decision to make.

I have also been offered a plant manager's position in another business section of the company I still work for. I get to keep my service and severance and final salary pension benefits for the foreseeable future(it's a cracking scheme in fairness). Terms and conditions may change for the worse in future - who knows? - but now I'm in a real quandary.

The first scenario gets me out of my immediate financial predicament and if employment comes along swiftly, then it's happy days.

The second scenario gets me the chance to progress up the career ladder and quickly move along the pay scale anyway - and the new company who bought us out offer all of its employees the chance to relocate within the company if ever needs be - and I only need another 6 years and I qualify to receive the company pension (which will coincide with 30 years service by then) - that seems to be the clinching factor in it for me as I will be out of debt by then anyway.

But the chance of sorting out the finances immediately is quite tempting...... my head is boxed in, and it's the type of dilemma most people would give an arm and a leg for - but still a dilemma all the same!!!!

I'm off in to work to discuss the terms of the plant manager's role now!!!!!!

Best of luck Mr Parmo.
It looks as if you could potentially have a win win situation which is a refreshing change.

scenario 2 for me PP

for what its worth I would go for 2nd option. good luck

Its okay your mate saying there is a job there for you but you need to be 100% sure there is, so a week on the sick to do you survival course which is about £1k I think then see if you can get that job he is talking about!

When you have been somewhere that long Mick its a big life change, even more if you are going to be working away from home.

Any chance that you can get them to pay you off with all of the benefits and then re-employ you in the alternative role as a new starter? If so then snap their hand off.

Be wary of moving roles unless you're totally comfortable with what they're offering you. I've seen other companies do this and then the employee either doesn't like the new role and leaves without the pay-off or the company subsequently determines that they're not suitable for the new role and bullets them without the pay-off.

I'd also be talking to a few agencies to see what other work is around should you decide to take the money and run.

Good Luck!

Final salary pension scheme would clinch it for me. Especially if your potential earnings are increasing.
6 years is nowt.
Good money offshore. When you're in work.

cheers fellas - the point Ripper made is a valid one, whereby signing a new contract for a new position could potentially see some underhanded changes to terms and conditions!!!!

They are working out the pay package and if I'm a couple hundred quid up in my hand every month then the deal will be done - bird in the hand and all that... they'll get back to me tomorrow!!!

I'm too long in the tooth to get terms and conditions altered against my interests, I'm gonna use the potential job offer elsewhere as a lever for negotiations... should have been an agent for pro footballers me!!!

Take the money and buy 55000 Stag Swags, you know it makes sense

oh no, now I really don't know what to do next!!!

Take the moneyand have a massive spending spree on sex, drugs and drink.
Put it this way Mick, with your stresshead you'll be dead before you are 50 with a heart attack.
Or hanging round drinking with Mutley you'll be dead within 2 years!!!!

Dont think short term mate, what happens if you take the money and the rig jobs dosent come off, or you dont like working away from home??? How long is 55k gonna last you....not long if your used to decent money!!

BTW what plant you on mate??

used to work on the old Pruteen/ Belasis site (our plants have now been demolished on there )
now working on the old Research and Development site (until recently known as Avecia but now been bought out by Merck)

I am sure a few lads who work at our place used to work on that plant (was it also know as the verton plant?) We now work for Sabic, but we have been took over several time, used to LNP plastics engineering, the GE Plastics, Bow Sabic........ Good company to work for....

Mick, I used to work for Merck for a few years, and whilst the particular branch I worked at was full of bounders and silly boys, the German top brass were certainly respectable. If they are going to be your new employers then go for it. They do seem to look after their valued employees, so if I was you I would get the best deal you can and think of the long term.

either way, the few of us left in this caper will almost certainly be at the arse end of the existence of the chemical industry on Teesside by the time we retire!!!!
The oil and gas sector will survive a bit longer at North Tees/Seal Sands, but the chemical sector looks in a bad way now

It would be option 2 for me mate. Guaranteed job and the clincher is the pension scheme. I'm in the chemical industry as well and the nice men in the big house on the hill stopped our final salary pension about 5yrs ago. They're like hens teeth nowadays.

Option 1 bit of a risk.

Then again the Stag Swags are a hell of temptation....hmmm

Invest in yourself Parmo and get the pension. Do not throw away free money, ever. I will guarantee you that when you are either in a position to retire early or be retired, you will give yourself a big pat on the back. Good luck.

the pension is the clincher, no doubt. I'll have 30 years contributions in by 2016, and if necessary I can put AVC's in when I'm 45 (Sept next year) to get the pot as close to fully funded as I can as quickly as I can. The company increases its own contributions in those circumstances as well, so hopefully if I find myself in this position again in a few years I'll be able to go - safe in the knowledge I've got a good income stream behind me

The company I work for sells stuff (chemicals, etc) to the Belasis Park research companies so if your ever looking to source anything give me a shout.

Mr Parmo - the first £30k of a redundancy payment is tax free, so the £10k tax is derived from the excess £25k @ 40%. The tax man regards the entire £55k as income, & so puts you into the 40% bracket when added to your wages, even if you weren't in the 40% band already.

Assuming you take the £30k tax free, part or all of the remaining £25k can be used to buy additional pension, either from the company's scheme, or via a personal pension if he company scheme doesn't provide that facility. Since 2006 an employee can be a member of the company pension scheme & contribute a personal pension too.

Whatever part of the £25k is paid as a pension contribution is grossed back up for tax purposes. You can contribute as much of it as you wish to the pension, & if contributing the full £25k, you effectively pay no tax on the entire redundancy payment. That may help to bridge some of your 6 year gap to retirement

hth - can elaborate if you need it

the lads at work who now qualify to receive their pension and are leaving, wanted to do a similar thing Mr POT! Put the taxable portion of their redundancy lump sum (a separate amount) back into their existing pension pot, to replace some of the tax free lump sum they have taken out from their pension. Apparently the Labour government closed this tax loophole a couple of years back!!!!

Apparently you can only do what you said, which for me would be a good thing, to put the taxable portion of the redundancy money into another scheme - which you can still do obviously.
Not that it matters as I've negotiated a decent starting salary and maintained the same benefits as my old job - so I'm taking the first line plant manager's role and staying on. It's a different business section but I'll eat the job for breakfast. If the same situation crops up in 6 years time I'll be laughing fatty cakes!!!

When I was working at British Gas last year one of the regional managers was telling me he had give a similar type of deal to his engineers

There was 10 to be made redundant, about 40 people applied and nearly came to blows with one another when the names were decided