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Old 3rd Dec 2008, 07:57
  #45 (permalink)  
wobble2plank
 
Join Date: Jul 2005
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Exscribbler,

The problem with the old pensions scheme, which I admit seems a little insignificant in todays current problems, is that your tax rate was calculated using your total pay, including specialist pay, which takes many aircrew well into the 40% tax bracket. National insurance contributions were also taken at this level.

When coming to 'pensionable pay' the military only takes the 'basic rank' pay minus the specialist pay. Hence you pay full tax and NI and receive a pension worth considerably less. Add to that, when 'retired' at 38 and moving into your next job you have to pay 40% tax on the non index linked pension payments from the Government? Double tax, you betcha!

As I say, for many people currently serving this seems a minor whinge, and it probably is, but it has been annoying retired Military aircrew for the last 30 years plus!
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