Historically the CAA recruited the majority of its ATC staff from the military and the tax-free lump sum on retirement from the CAA may have been an extention of the military gratuity to long serving military members. I do know that at one time the CAA Pension Fund would accept time served transfers from military pensions to the CAAPS even though there was no correlation between the two pension schemes in monetary terms.
IF the rumour on the Military website is true I would suggest that it would be politically unacceptable to tax the military gratuity of "Our boys serving in Afghanistan" and yet let "Lazy Civil Servants who ruin your holidays" retain the tax-free benefit (My interpretation of the Daily Mail/Daily Express headlines)
I think that BdIONU misses the point, no one is saying the the CAAPS cannot afford it but what is being said is that why should the hard pressed taxpayer in the form of HMRC make allowances for it. It is after all a "tax free bonus" (again the Daily Mails interpretation)
One further thing is that to accept the atco enhanced early retirement scheme you have to give 12 months notice, however if you wish to resign and claim your pension then you only have to give 3 months notice. Individuals may wish to look at the figures and maybe it is better to take the tax free lump sum and give three months notice than accept the enhanced early retirement and lose 40% in tax. You are quite entitled to resign and only give three months notice that is in the staff handbook although IF this rumour is true and extended to NATS staff the management may try to make you believe you have to give twelve months notice fearing a mass exodus of staff and the knock-on effect on traffic levels due to staff shortages. I also believe that a 12 month notice period is unenforcable under European legislation as it compromises an individuals freedom of association and other "stuff"
Last edited by DC10RealMan; 9th Jul 2010 at 18:42.