Ministry of Defence | Defence News | Defence Policy and Business | New Armed Forces pension proposed
Better news, and relief in blue below, from the MoD site but the last comments mean if you are 45 then you are ok; but below 45 may mean you get accrued benefits up to 2015 immediately, but have to wait until 60 for the service post 2015 to be paid? :
Benefits of the proposed new scheme include:
• it creates one scheme for all - including reservists. There are currently several different Armed Forces pension schemes
• Service personnel won't have to make any personal contributions to their pension
• Service personnel will receive a tax-free lump sum and monthly income if they leave the Armed Forces at age 40 and have served for over 20 years. No other public service makes any pension payment that early
• as recommended by Lord Hutton, the Normal Pension Age will be 60 - considerably lower than for other public service pensions
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accrued pension rights have been protected so there is no change to the age at which those currently serving can draw their accrued benefits, which are based on final rank and salary
• it is in line with Lord Hutton's recommendations and other public service schemes, moving to a pension based on career average earnings rather than final salary
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all members of the Armed Forces Pension Scheme who were within ten years of their Normal Pension Age on 1 April 2012 will receive transitional protection and see no change in their pension age or the amount they receive at retirement.