Redundancy Package Announced
From the RAF Intranet:
Scope of the Redundancy Programme and Criteria for Selection
The aim of the redundancy programme is to achieve the draw down outlined in para 1 above whilst maintaining a satisfactory balance of personnel with the skills, experience, ability and seniority in rank throughout the Service to enable the delivery of operational capability in a more flexible, deployable and responsive way. Redundancy, therefore, will be targeted towards particular ranks, branches and trades intended to achieve this aim. Eligible personnel will be invited to apply to be considered for compulsory redundancy but, to ensure the long-term balance of ability and experience at each rank level across branch and trade structures, it may be necessary to reject some applicants whilst selecting non-applicants for compulsory redundancy. The arrangements outlined in this DCI are applicable to all regular Royal Air Force personnel, including air rank.
Redundancy Timetable
The redundancy programme is planned to be completed by 31 Mar 08 or earlier if possible. Firm timetables for each tranche will be promulgated when the fields of those eligible are published.
Selection of applicants for redundancy is entirely at the discretion of the Royal Air Force and will be made in the interests of the Service.
General Eligibility Criteria for Redundancy
Rank. For the purposes of eligibility and selection for redundancy, rank will be the addressable rank for officers or the normal paid rank (either acting or substantive) for non-commissioned aircrew and ground airmen, held on the date of promulgation of fields for each tranche of the redundancy programme. Airmen holding Special Paid Acting Rank (SPAR) and officers holding rank solely for presentational purposes in overseas appointments will be considered in their substantive rank. All personnel, including those who have been selected for promotion, who are selected for redundancy will cease to be eligible for promotion, including appointment to acting rank. However, they may retain any acting rank held when selected for redundancy, subject to their continuing to occupy a post that justifies its retention. Officers selected for redundancy will not be eligible for transfer to a Permanent Commission (PC), assimilation, or selection for any training course that attracts a return of service (ROS) commitment, unless it is in the interests of the Service to do so.
Eligibility for personnel with pending exit dates. Personnel will not be considered for redundancy in any tranche if, as from the date of this DCI, they have a conditioned exit date on or before 31 Mar 08. In the case of officers, a conditioned exit date includes release at an exercised Optional Exit Point or at the end of a Short Service Commission (SSC), and retirement at an Initial, Normal or exercised Optional Retirement Date. For airmen, a conditioned exit date includes release on Regular Service Expiry (RSE) date or at age 47 for those who have yet to exercise their right to apply for Length of Service (LOS) 30. The rules applying to personnel who have applied for Premature Voluntary Release (PVR) are covered in paras 24 to 26. Airmen serving on any form of continuance or officers serving on any form of extension of service, including any officer serving past the normal compulsory retirement age for his branch specified in AP 3393 Chapter 5, will not be eligible to apply for redundancy. Under no circumstances will personnel be permitted to amend their current terms of service either to qualify for redundancy, avoid qualification for redundancy or to improve terminal benefits once redundancy fields have been announced and before the closure date for applications.
Eligibility of personnel subject to current disciplinary or administrative action. Personnel who are subject to action by Service or civilian authorities which may result in trial either by court martial or in the civilian courts (save for minor offences under the Road Traffic Act), or who are the subject of administrative action that may result in termination of service for blameworthy reasons, are eligible to apply and their applications will be considered along with all other applications. Similarly, personnel within this category may be selected as non-applicants where necessary. Selection for these personnel will be based on the same eligibility criteria as for others; Redundancy Selection Boards will not be informed of current disciplinary or administrative proceedings. However, if disciplinary or administrative action has not been completed by the exit date, redundancy will not take place until the outcome is known. Thereafter, eligibility for redundancy will be decided on a case-by-case basis; in all cases, the interests of the Service will remain paramount. Personnel who have been selected for redundancy but are subsequently discharged or who retire, resign or are dismissed from Her Majesty’s Service for other reasons, will not be eligible for redundancy benefits.
Return of Service. Both applicants and non-applicants who owe a ROS following basic training, further training, pre-employment training, other courses and promotion can still be considered for redundancy either as applicants or non-applicants. This ROS will be taken into account and selection for redundancy will depend upon the overriding requirements of the Service. However, see para 35 for the policy concerning the ROS associated with Retention Incentive Bonuses.
Redundancy Benefits
Redundancy benefits for personnel leaving the Service under this redundancy scheme are detailed at ANNEX A (officers) and ANNEX B (airmen and non-commissioned aircrew). Once the categories of those eligible have been announced, personnel who require an individual estimate of redundancy benefits should apply to the Armed Forces Personnel Administration Agency (AFPAA) Pensions Office Redundancy Cell in the format of ANNEX C. Applications for estimates must reach AFPAA no later than three weeks after the redundancy fields have been promulgated. A pensions ‘Help Desk’ for enquiries will also be available on a number to be announced with the redundancy fields; however, a formal assessment of benefits on redundancy terms will only be provided on receipt of an application. All applications will be acknowledged; personnel who have not received an acknowledgement within 10 days of despatch of their application should contact the AFPAA Pensions Office. The Pensions Office should not, however, be hastened for estimates until five weeks have elapsed. Applications should not be submitted until details of the redundancy fields are announced; applications for estimates for exit on redundancy terms from personnel who are not in the redundancy field applicable to their branch/trade and rank will neither be acknowledged nor processed.
Selection. Redundancy Selection Boards will assemble at the RAF PMA to consider and reach decisions on all applications for redundancy and, if necessary, to decide which non-applicants are to be selected. The composition of the Redundancy Selection Boards will reflect the principles employed for Promotion Selection Boards.
Notification. All personnel (applicants and non-applicants) selected for redundancy will be notified by individual letter via their chain of command. Those applicants not selected for redundancy will be notified separately by letter direct from RAF PMA in order to protect confidentiality. Letters will be dispatched close to the notification date in order not to arrive before the formal notification of redundees. This may mean a small delay before those not selected are told. No information will be disclosed in advance of the notification, and units and individuals are not to contact RAF PMA to attempt to obtain early advice.
Period of notice. Successful applicants for redundancy will be entitled to six months’ notice of exit. However, some personnel may be required to serve for up to six months beyond that date to fulfil Service manning requirements. Non-applicants selected for redundancy will be entitled to 12 months’ notice of exit. All notice periods include Graduated Resettlement Training, Terminal Leave (where applicable), Post Operational Detachment Leave (PODL) and Annual Leave.
Change of Exit Date. Both applicants and non-applicants wishing to leave earlier may apply (DO letters for officers, General Applications for airmen) through normal personnel channels to do so, and they will be permitted to leave provided the interests of the Service permit. Personnel seeking to take this course of action should note the restrictions in para 31 and should be aware that this may affect their entitlement to Job Seekers’ Allowance (see para 32). In addition, those seeking to leave earlier will have their pension and gratuity rates based on their actual date of exit and not their original notice date. Non-applicants selected for redundancy will not normally be allowed to defer an approved redundancy exit date for personal reasons (for example, to attend a resettlement course),
Reserve Liability. Officers serving on a PC made redundant under the terms of this DCI will be placed on the retired list with the normal recall liability; officers serving on SSC terms will be transferred to the reserve and will have a reserve liability. Officers will be subject to the usual liabilities of retired officers as set out in AP 3393, Chapter 5, Annex B, and to the restrictions on employment set out in AP 3393, Chapter 5, para 0505. Airmen and non-commissioned aircrew who are discharged to pension under the terms of this DCI will be subject to the normal recall liability in an emergency; airmen and non-commissioned aircrew made redundant who are on non-pensionable engagements will be transferred to the Royal Air Force Reserve to fulfil their call-out liability. AP 3392 Vol 7 Leaflets 201 and 202 provide clarification.
Appeals
Non-applicants selected for redundancy and those who applied to be considered for redundancy but who have not been selected may appeal. Appellants will be expected to demonstrate exceptional circumstances that were not known by the Redundancy Selection Board. Dissatisfaction with an exit date calculated in accordance with this DCI is not a ground for appeal. To maintain confidentiality, personnel are to submit appeals direct to PMA8(R)(RAF); they may, however, seek the support of their chain of command if they wish. Where appropriate, appeals are to be supported by medical or other evidence. The above procedures do not preclude an individual’s right subsequently to seek redress under QR(RAF)1000 or to request an interview with an AOC under QR(RAF)52(5); exit on redundancy terms does not, however, qualify an officer for an interview with a member of the Air Force Board under QR(RAF)2905(5).
Premature Voluntary Release and General Right to Give Notice (NGR)
General policy. The arrangements detailed in AP 3393 and AP 3392 Vol 2 Leaflets 703 and 708 under which applications may be made for PVR/NGR exit will continue to operate throughout the redundancy programme. Personnel granted permission to leave under PVR/NGR terms will not be considered for the award of redundancy terms.
Personnel who have applied for PVR/NGR. Personnel who have applied to leave the Service for any reason other than redundancy, including PVR/NGR, and whose application is received by RAF PMA on or before the date of this DCI will not be allowed to withdraw their application in order to apply for redundancy.
Financial Retention Incentives (FRI). Applicants for redundancy who have received an FRI will be subject to the extant rules if they fail to complete the appropriate ROS . If they are discharged before they have completed the appropriate ROS, they will be required to repay the full amount of the FRI (gross) in a single payment before discharge. Non-applicants made redundant who, at the time of their selection for redundancy, have received an FRI for which they have not provided the requisite ROS before their last day of service, will not be required to refund the FRI.
Compensation will take the form of a tax-free lump sum payment known as a Special Capital Payment. In addition where an appropriate period of reckonable service has been given immediate retired pay and Terminal Grant may be paid.
Qualifying Service means full paid service from age 18. Reckonable service means full paid service from age 21, whilst a member of the Armed Forces Pension Scheme (AFPS). Additionally, for the purpose of calculating the rate of retired pay and Terminal Grant, notional years of service which have been bought under the Purchase of Added Years Scheme and actual service brought into the AFPS by way of a Transfer Value may be included as reckonable, but not qualifying. Contracted-out service means full paid service during which contracted-out rates of National Insurance contributions were paid.
Special Capital Payments. The amount of the Special Capital Payment will be equivalent to a number of months’ pay as follows:
a. Officers with at least 13 years’ qualifying service:
Uncompleted portion of career to normal retiring age Special Capital Payment (Note 1)
Years Months’ Pay
5 or more 18
4 15
3 11
2 7
1 3
Less than 1 year See Note 2
Note 1. The payments shown are for whole years of uncompleted service. Each further calendar month of uncompleted service will attract a payment of 1/12th of the extra compensation for a further whole year of uncompleted service, subject to a maximum of 18 months’ pay.
Note 2. For periods of less than one year, each calendar month will attract a payment of 1/12th of the compensation for one year of uncompleted service.
b. Officers with 12 years or more, but less than 13 years of qualifying service.
Years of Qualifying Service Special Capital Payment (Note 3)
Years Months’ Pay
12 15
Note 3. The payment is for 12 whole years of qualifying service. Each further calendar month of service will attract a payment of 1/12th of the extra compensation for a further complete year of service (subject to a maximum of 18 months’ pay).
c. Officers with less than 12 years’ qualifying service:
Years of Qualifying Service Special Capital Payment (Note 4)
Years Months’ Pay
11 19
10 17
9 15
8 14
7 12
6 10
5 9
4 7
3 5
2 3
1 1
Note 4. The payments shown are for complete years of service. Each further calendar month of service will attract a payment of 1/12th of the extra compensation for a further complete year, subject to a maximum of 19 months’ pay.
5. Special Capital Payments will be assessed as follows:
a. Pay will be the basic military salary in issue on the last day of full paid service or, if more favourable, the rate appropriate to any paid acting rank held on conclusion of the last appointment before retirement, but all forms of additional pay and allowances will be excluded in either case. For flight lieutenant specialist aircrew only, pay will be the basic military salary, plus the difference between the middle rate of flying pay and the rate of specialist flying pay in issue.
b. On the current system, a month’s pay will be calculated by multiplying the daily rate of 365 and dividing by 12. Once JPA goes live in all 3 Services, the calculation will be based on 365.25 days to take account of the way the system is programmed to handle leap years.
Retired Pay and Terminal Grants.
6. a. Officers prematurely retired as redundant who have less than 16 years’
reckonable service but at least 12 years’ qualifying service, will receive retired pay calculated as a proportion of the 16-year rate according to their lengths of reckonable service. Therefore, for example, an officer with 13 years’ reckonable service will receive 13/16ths of the 16 year rate of retired pay for his rank. The normal rule requiring two years’ service in the substantive rank will be waived.
b. Where 16 years’ reckonable service has been completed, retired pay will be determined under the normal rules except that the requirement of two years’ service in the substantive rank will be waived.
c. Where retired pay has been awarded under 6a or 6b a Terminal Grant of three times its annual value will be paid.
d. Officers who complete two years’ contracted-out service, but less than 12 years’ qualifying service will be eligible for preserved benefits normally payable at age 60. Those officers with at least nine years’ but less than 12 years’ reckonable service will receive in addition a resettlement grant subject to completion of satisfactory service.
e. The normal rules for life and resettlement commutation will apply to those officers awarded immediate retired pay under the AFPS75.
f. A preserved pension may be transferred to another pension arrangement, subject to certain time limits and conditions, such as those contained in the eligibility rules imposed by the AFPS. When there is insufficient service to qualify for a preserved pension, this service may also be transferred to another pension scheme, or be bought back into the State Earnings Related Pension Scheme (SERPS).
g. Flight lieutenants on the PAS who leave on redundancy terms and who have failed to serve the requisite five years on the PAS will receive the standard Specialist Aircrew representative pension based on rank without any pension supplements. Squadron leaders on the PAS who leave on redundancy terms and have failed to serve the requisite five years on the PAS will receive the standard career stream representative pension based on rank without any pension supplements.
Rank
7. Awards of retired pay or preserved pension made under these provisions will based on the substantive rank held on retirement (the normal requirement for a minimum of two years in the rank being waived) or, if more favourable, under the normal provisions for taking into account paid acting rank.
Short Service Commission Officers
8. a. In the event of premature termination of service owing to redundancy, an
officer on a short service commission, in addition to the preserved benefits due in respect of the period of service completed, will be awarded a tax-free Special Capital Payment calculated on the following basis:
(1) one month’s pay for each year completed; or
(2) one month’s pay for each by which service is shortened, plus one month’s pay, whichever is the lesser.
Compensation will take the form of a tax-free lump sum payment known as a Special Capital Payment. In addition, where an appropriate period of reckonable service has been given, an immediate pension and Terminal Grant may be paid.
Qualifying Service means full paid service from age 18. Reckonable Service means full paid service from age 18, whilst a member of the Armed Forces Pension Scheme (AFPS). Additionally , for the purposes of calculating the rate of pension and Terminal Grant, notional years of service which have been bought under the Purchase of Added Years Scheme and actual service brought into the AFPS by way of a Transfer Value may be included as reckonable, but not qualifying. Contracted-out service means full pay service during which contracted-out rates of National Insurance contributions were paid.
Special Capital Payments
Personnel serving on engagements to complete 22 years or more, or engagements in excess of 12 years provided there is no evidence that they would not have engaged for, or been refused, an extension of service to at least 22 years, will be granted a tax-free Special Capital Payment on discharge by reason of redundancy as set out below:
a. Personnel with 16 years’ or more qualifying service:
Uncompleted Period of Engagement Special Capital Payment (Note 1)
Years Months’ Pay
5 or more 18
4 15
3 11
2 7
1 3
Less than 1 year See Note 2
Note 1. The payments shown are for complete years of uncompleted service. Each further calendar month of uncompleted service will attract a payment of 1/12th of the extra compensation for a further whole year of uncompleted service, subject to a maximum of 18 months’ pay.
Note 2. For periods of less than one year, each calendar month will attract a payment of 1/12th of the compensation for one year if uncompleted service.
b. Personnel with at least 12 and less than 16 years’ qualifying service:
Years of Completed Service Special Capital Payment (Note 3)
Years Months’ Pay
15 15
14 15
13 13
12 13
Note 3. The payments shown are for complete years of service. Each further calendar month of service will attract a payment of 1/12th of the extra compensation for a further complete year of service subject to a maximum of 18 months’ pay. Where service exceeds 15 years, extra compensation will be 1/12th of three months’ pay for each calendar month over 15 years.
c. Personnel with less than 12 years’ qualifying service:
Years of Completed Service Special Capital Payment (Note 4)
Years Months’ Pay
11 19
10 17
9 15
8 14
7 12
6 10
5 9
4 7
3 5
2 3
1 1
Note 4. The payments shown are for complete years of service. Each further calendar month of service will attract a payment of 1/12th of the extra compensation for a further complete year, subject to a maximum of 19 months’ pay.
Pensions and Terminal Grants
Personnel eligible for a Special Capital Payment under the terms of paras 4 to 6:
a. Who have less than 22 years’ reckonable service, but at least 12 years’ qualifying service, will receive a pension calculated as a proportion of the 22 year rate according to their lengths of reckonable service. Thus an airman with 13 years’ reckonable service will receive 13/22nds of the 22 year rate of pension.
b. Where 22 years’ reckonable service has been completed, a pension will be calculated at the normal rate payable according to the length of reckonable service given.
c. Personnel who complete two years’ contracted-out service, but less than 12 years’ qualifying service will be eligible for preserved benefits normally payable at age 60.
d. The normal rules for life and resettlement commutation will apply to those personnel awarded an immediate pension.
e. A preserved pension may be transferred to another pension arrangement, subject to certain time limits and conditions, such as those contained in the eligibility rules imposed by the AFPS. When there is insufficient service to qualify for a preserved pension, this service may also be transferred to another pension scheme, or be bought back into the State Earnings Related Pension Scheme (SERPS).
Non-Commissioned Aircrew (NCA) on the NCA PAS who leave on redundancy terms and have failed to serve the requisite five years on the PAS will receive the standard representative pension based on rank without any pension supplements.
Where a pension has been awarded under paras 7a or 7b, a Terminal Grant of three times its annual value will be paid under the conditions of QR 3175(2). A resettlement grant will not be payable.