Yes, he did say that. But Hutton doesn't make the rules, he was taken onboard to offers Osborne advice and bought him breathing time and space, and act as an excuse Patsy. Transiting across to AFPS 13 (or whatever) might not be obligatory, but may well be should you wish to sign on or get promoted. Previously earned rights could well be preserved, so its not so much a loaded gun at your head; more, loaded kid gloves rubbing greedily together as you mull the alternatives.
This may or may not provide (cold comfort) and I hate to be a potential harbinger of doom, but The Armed Forces (Pensions and Compensation) Act was amended to read..
(1) The power of the Secretary of State to modify an armed forces pension scheme may not on any occasion be exercised in any manner which would or might adversely affect any entitlement, accrued rights or pension credit rights of any member of the scheme acquired before the power is exercised unless—
(a) the consent requirements are satisfied in respect of the exercise of the power on that occasion in that manner, or
(b) the scheme is modified in the prescribed manner.
(2) The consent requirements are those prescribed for the purpose of obtaining the consent of members of the scheme to its modification.
Retirement options are getting wider by the month. As the picture is dumbed down across the board, private company schemes will also come under increasing pressure. I have absolutely no doubt that in 'x' year/years, we will see some budget carriers signing up to NEST in order to mitigate an expensive and long term company commitment. The attitude will be '.. if you don't like it, fine.. then leave.'. There will always be some hungry mouth waiting to take your seat. In all honesrty, I would not be surprised if, in the wake of a massive overhaul, something similar was offered to new recruits. After all, if you are going to make changes, get the bad news out of the way now, rather than drip feed it over the coming years and endure death by a thousand cuts.
The concern within HM Forces is (as far as I can see) that there is going to be a multitude of individuals on differing contracts. Contracts such as PAX for instance, is that it probably is far from being the best product for most people.. but everyone is in it together and so, the blunty or Rock sitting at KAF is paying the same as the EOD operator out on the ground. In contrast, these widely differing levels of beneficial and opaque retirement benefits can only further undermine and dilute military ethos.. or perhaps people just won't care by then - who knows?
Reliance on the company or the MoD is getting a less and less likely option as the months/years go by, especially as the Basic State Pension is also going to overhauled and simplified to 'compensate'. £140 a week, anyone?!