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Old 7th Feb 2007, 16:39
  #52 (permalink)  
Melchett01
 
Join Date: Sep 2004
Location: Darling - where are we?
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Just flicking through the last AFPRB report in anticipation of this year's award - if that is the right word - noticed this:

In its affordability evidence, MOD reminded us that financial pressures continued despiteadditional resources of £3.7 billion having been allocated to MOD under the 2004 Spending Review through to 2007-08. These pressures came from a variety of sources including: the additional costs of military pay and allowances; from pension and compensation scheme costs; high fuel prices; investment in maintenance of nuclear warheads; and enhancements to reflect recent operational experience.
So there you have it, if you want a worthwhile pay rise, stop asking for more kit in theatre, walk everywhere and don't expect a decent pension.
I don't suppose that the armed forces pension arrangements and how they fund things help matters. Rather than investing and letting the stock market take the strain and provide a steady stream of capital growth and or income to fund a known liability, the govt has chosen to leave the armed forces pensions scheme unfunded. In a nutshell, it is an ongoing and ever increasing liability that they must pay for each year out of their budget.

Seems a bit barking to me, and a lot more expensive than employing a fund manager to ensure that what cash they do have works hard for them. So there you have it - blame it on the pensions if we don't get a decent pay rise - the MOD will!

Ed:
Just seen this on the IOT Pay thread:

i get paid more than a 4 year air commodore not bad seeing as though I only came out as a corporal (in 1989)
Far from unusual given the state of our pay. A friend of mine left her non-commissioned job in the army, and over the course of a number of years managed to make leaving look like the best decision ever. Now, at about the time she would be looking at getting to her 22 point, the military equivalent of her civi salary would be decided by the Senior Salaries Review Board putting her up with the 2-3* pay band.

With options like that in civi street, it doesn't take a rocket scientist to work out that the AFPRB are on a hiding to nothing unless it does something pretty drastic and pretty soon.

Last edited by Melchett01; 7th Feb 2007 at 17:18. Reason: Post on other thread
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