The Immediate Pension Point is the stinger. The problem is, a few dozen officers didn’t get to reach their IPP. As you may know, a very small group of military officers, (cross service), were made compulsorily redundant back in 2102 onwards, very close to it as part of the Future Force 2020 redundancy programme. Some measured how close they were in days/weeks. Consequently, theylost expected retirement benefits of between £100,000 and £200,000. Previously, commissioned redundees, who had completed between 12 and 16 years’service got retired pay which would be tapered down from the full rate. So, someone made redundant having served 13 years would receive a smaller tapered (13/16ths) pension than someone who had served for 14 years (14/16th).
Coincidental to the original notice of intent to make officers redundant in 2010, the coalition government rushed through Statutory Instrument 832, laid before Parliament on in March 2010. It clarified what would happen in the event of redundancy to those who have served a full 16 years but made no reference at all to those in the 'tapered' 12–16 year bracket. In effect, that category of officer completely ceased to exist - the contract was changed and it was one that removed lawfully accrued benefits. However, no one was not informed of the change, least of all because most were probably too busy in Iraq or Afghanistan and had other things on their minds. Consequently, in 2012, when serving officers were made redundant short of their IPP, they suddenly discovered the details of their new contract and new redundancy terms.
A Flt Lt, for instance, lost somewhere in the region of £125,000 over 20/25 years.
It was a contract item relating to an accrued benefit that had been removed without consultation, dissemination or reference, and it seems to have passedby without so much as a whimper, let alone a fight. Service personnel were recruited, promoted and even retained on the basis of receiving their ImmediatePension, which was also confirmed in writing when some officers converted to a Regular Commission. Previous Coalition Government Ministers are on record stating these service personnel were receiving a “significantly increased tax free lump sum" to compensate for their pension losses. This is disingenuous. The extra in capital lump sum they received is insignificantrelative to the lost pension.
No one is saying that the state can't make its citizens worse off, of course it can. But it has to do it fairly, and without cynical maladministration - especially to those most loyal of public servants who it trumpets about every November. For instance, career choices may have been made differently. Other groups of public servants have unions and representatives to fight their cause when it comes to pensions.. service personnel demonstrably have absolutely no one. They, and their families rely entirely on the Chain of Command, Civil Servants, Ministers and Parliament to protect them from unfair treatment. I have secured the crucial support of Baroness Ros Altmann, Sir Steve Webb (both former pension ministers) and (sponsor) Johnny Mercer MP (and others who are helping on the condition of absolute discretion) who will be hosting a meeting at Westminster later this month (along with some of the affected) to highlight the plight of the unpensionables and asking why it was allowed to happen.