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Old 27th Jun 2010, 08:01
  #133 (permalink)  
Scribbly520
 
Join Date: Jan 2008
Location: Staffordshire
Age: 71
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AFPRB

Sadly, memories fade. The AFPRB reported all through the mid 70s but was over-ridden by the Labour Government, which imposed pay restraint to such an extent that by 1979 pay was 35% or so behind that recommended by the AFPRB. It took a Conservative Government to bring pay up to the recommended level.

Even they did not rubber stamp the AFPRB Reports. Apart from seeking to influence the outcome by briefing on 'affordability' before the process started, in a number of years in the mid 90s, when the budget was well balanced and the economy was doing well, the award was staged. This effectively 'fined' or 'taxed' servicemen for simply being in the service, although I could never get the members of the AFPRB to see it that way. Even Baroness Brenda Dean, who could hardly be expected to be a friend of the Major Government, could not see that withholding pay was a fine or a tax.

So how did the AFPRB do:

1989 Above RPI Rise
1990 Below RPI Rise and staged
1991 Above RPI Rise
1992 Below RPI Rise
1993 Above RPI Rise
1994 Above RPI Rise and staged
1995 Below RPI Rise
1996 Above RPI Rise and staged
1997 Above RPI Rise and staged
1998 Above RPI Rise and staged
1999 Above RPI Rise
2000 Above RPI Rise
2001 Above RPI Rise
2002 Above RPI Rise
2003 Spot on RPI Rise
2004 Below RPI Rise
2005 Above RPI Rise
2006 Below RPI Rise
2007 Below RPI Rise
2008 Below RPI Rise
2009 Below RPI Rise
2010 Above RPI rise

Incidentally, I made my protests about staging to the AFPRB in late 1998, so I may have been listened to, as we have not been staged since. Staging is a particularly mean trick as it produces pension troughs, as, of course, does a 2 year pay freeze.

More worrying in the long term is the insidious effect on pensions of the change from RPI to CPI. I am not sure people have grasped this yet but my calculations are that, based on historical data over the last 10 years, pensions in issue could be lower by 10% at 65, 25% at 85 and 40% at 100 years of age because of the change. If I live as long as my dear old dad, I will face an old age with a pension 75%, and decreasing, of the value I was rightfully expecting (Pensions Increase Act 1971 and Army Pensions Warrant 1977, AFPS 75 etc). If I live to 100, I probably will be too gaga to care. This will also affect the widows, who will get a lower pension as well.
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