Originally Posted by
Bladdered
I will have worked for 12 years after leaving the RAF to receive the full 'new pension' but I always knew that in the RAF I was 'opted out' of what used to be SERPS. My NI contributions were less than if I was opted in so as I say it will have taken another 12 years of being 'in' to get the full £155. This really is not new news but I am dismayed that this is not common news to those still serving and who may need to consider how best to fund their retirement.
IMO it is new news, in that I think most of us were unaware of the implications of "contracting out" when we joined. Again, IMO this, and the changes to RPI linking should count as misrepresentation, much in the same way as misselling has been clobbered in other aspects of financial affairs. Why on earth would it be better for the individual to agree to a lower pension structure when joining a mandatory pension scheme? There was never any option given in respect of NI, in my experience.
I believe that "contracting-out" is a formal process. Perhaps Al R can advise how the MOD claim to have covered this?
OAP