Gratuity / Pension

[Oggin Aviator]

Hi

This is not a thread on the new pension, but the old.

Has anyone got any idea what the gratuity is for a Flt Lt / Lt leaving after 16 years at their IPP. Also approx value of the pension? How much more for a junior Sqn Ldr / Lt Cdr leaving at same stage? I have asked but got told to phone Glasgow or something for a personal forecast which I dont need, just the general figures.

Thanks

Oggin

[Ginseng]

I assume you mean what is the amount of the IP?

Assuming exactly 16 years unbroken Reckonable Service, with more than 2 years in the rank of Flt Lt/Lt, I reckon the IP would be of the order of £10,700 pa for normal retirement at the IP, plus a single lump sum (tax-free) of about £32,000. These figures are not exact, since I don't have the precise detail to hand, andthe real figure might be less.

The PVR rate for the same conditions (although you would not realistically PVR at this point) is £9,265 pa.

For a junior Sqn Ldr/Lt Cdr at the same point, assuming 2 years completed in the rank, the figure is, I believe, £12,565 pa plus lump sum £37,695. The PVR rate is £11,187 pa.

Or thereabouts.

Regards

Ginseng

PS - Edit: I should have made clear that these are the nearest I can give for those retiring on after 31 Mar 2004. They would change after 31 Mar 2005. Also, if you were in service on your 21st birthday, you IP point (age 38) would equate to 17 years Reckonable Service, so the rates would be slightly higher.

[Oggin Aviator]

Thanks for the info, much appreciated.

I assume you are still able to commute part of your pension in order to give a bigger initial lump sum? Tax free as well I thought, thus saving paying extra tax out of the pension over time.

This must all be written down somewhere, does anyone have a link to anthing published on the net? I am about 7000 miles from my pay office so cant access any hard copy documents!

cheers

Oggin

[PlasticCabDriver]

If you have internet access, it took me about 2 minutes on Google to find this:

http://www.rafcom.co.uk/pay_allowances/pensions/2004/pop_pensions_off_0204.cfm.

or

http://www.army.mod.uk/servingsoldier/condofserv/mm/pensions/ss_cos_mm_pay_pen_offrs_w.html

I'm sure you could find a navy site too, but the rates are the same.

[Oggin Aviator]

Yeah, just me being lazy. The full stuff is explained on the MOD website here. (http://www.mod.uk/issues/pensions/)
Thanks for the reply anyway PCD.

Cheers

Oggin