Armed Forces Pay Review 22

[JTIDS]

Any word when the Armed Force Pay Review will report for this FY? I see it was meant to report sometime in May, but no sign so far.

[The B Word]

The expectation with the AFPRB Report was to have it finished by May 22 for the Government to consider. With all the political shenanigans going on right now we’ll be lucky to see it published before summer recess on 21st July 22 - especially if there is a vote of no confidence. Personally, I’m not holding my breath until early September now with what is going on :rolleyes:

[The B Word]

When will the 2022/23 pay award be announced?The AFPRB won’t report until May 2022 and the MOD may not make its decision immediately, meaning any pay award will likely be backdated to the start of the 2022 financial year. For 2021/22 the AFPRB submitted its report on 21 July and the award was not announced (https://questions-statements.parliament.uk/written-statements/detail/2021-10-19/hcws329)until October 2021.

The AFPRB said it is disappointed by repeated delays to the pay round, meaning pay rises were not implemented on 1 April and were instead bckdated. In its latest report, for 2021, the Body criticised the “significant (https://www.gov.uk/government/publications/armed-forces-pay-review-body-fiftieth-report-2021)” delays in receiving evidence from the MOD for the 2021/22 pay award.

This paper will be updated to reflect the pay award for 2022/23, when it has been made.


From here: https://commonslibrary.parliament.uk/research-briefings/cbp-9413/

[Toadstool]

https://questions-statements.parliament.uk/written-statements/detail/2022-07-19/hcws237
This year the AFPRB have recommended:


a headline increase in base pay for all members of their remit group (including medical and dental officers) of 3.75%;

that all accommodation charges are capped at 1%; and

rises and changes to other targeted forms of remuneration, and some increases to compensatory allowances. Where specified, these recommended changes are to be backdated to 1 April 2022.

The SSRB have recommended:

all members of the senior military, including Medical Officers and Dental Officers (MODOs), should receive a 3.5% consolidated increase to base pay;

no change to the current pay arrangements for MODOs:



2-star MODOs should continue to be paid 10% above the base pay at the top of the MODO 1-star scale, plus X-Factor:

3-star MODOs should continue to be paid 5% above the base pay at the top of the MODO 2-star scale, plus X-Factor.



that the minimum guaranteed increase to base pay (excluding X-Factor) on promotion from 1-star to 2-star does not fall below 10%;

that the minimum guaranteed increase to base pay (excluding X-Factor) on promotion from 2-star to 3-star does not fall below 10%.

[Melchett01]

As I expected, of all the deals announced today the Armed Forces comes off worse once again. Shocked I tell you, shocked.

[Baldeep Inminj]

Whilst this payrise is far below inflation, I consider it entirely in line with expectations. I say that because I was an RAF pilot for just shy of 30 years so I know very well indeed how MOD pay rises work. This is par for the couse and if I am honest it is actually not bad, if you are to consider previous MoD pay awards.

In all my time in the RAF, I loved my job, loved my colleagues, and loved the noble purpose and grand vision of the organization I worked for. People in the RAF need to be honest with themselves - they are doing their job for these reasons, and not for money. If they want a decent salary, they must leave. It really is that simple - most RAF people have no idea whatsoever what the outside market is like - they can earn a fortune, based on their RAF knowledge and experience.

I was a pilot and left the RAF on Professional Aviator Pay Spine on 79K per year as a Flight Lieutenant in 2018, so NOT a senior Officer. Good money I am sure most will agree...here is the thing...

I accepted a non-flying position on leaving the RAF with an aviation company. My Christmas bonus in my first year was more than my annual salary in the RAF...really. I am being paid an absolute fortune for the knowldge and skills the RAF gave me, and anyone can do the same.

If you are unhappy with the pay award, then leave! Seriously...just leave. You have no idea how lucrative the outside world is...the RAF pay peanuts and your skills are worth a fortune. Put your profile and experience/skills on LinkedIn (other platforms are available) and you won't have to wait long.

The Military will bleed you dry and pay you peanuts - there are companies willing to make you rich for what you know if you have what they are looking for.

[langleybaston]

Of course the best position is to be an OAP on a government index-linked pension with lots of index-linked NSIs ...... deferred gratification but gratification indeed.

10% or so so of quite a lot is quite a lot. Roll on September's inflation figures.

[Toadstool]

As I expected, of all the deals announced today the Armed Forces comes off worse once again. Shocked I tell you, shocked.

Most public sector worker unions have threatened to strike. Of course, we are unable to do that but will be obliged to cover for some other public sector workers whilst they do strike, inevitably gaining them more money.

As BI says, start planning for exit with more lucrative pay deals. We are not more professional because we do more with less, we’re just doing more with less.

[BEagle]

3.75% for those still serving seems pretty miserly.

Whereas according to the CTP website, Armed Forces pensions, once awarded, are adjusted in April each year by the Consumer Price Index (CPI). The CPI rate used is the CPI headline rate for the September prior to the April adjustment the following year. This rate is formally announced in October each year.

But with CPI at around 9.4%, do we really anticipate the government holding to this agreement? Perhaps encouraging is the announcement that, for the State Pension, the 'triple lock' will be applied for 2023....meaning a rise in accordance with inflation.

[Fonsini]

NHS Porters and Cleaners - 9.3%
Nurses - 5%
Police - 5%
Doctors and Dentists - 4.5%
Military - 3.75%

The “Ukraine Bonus” clearly didn’t have any effect.

[Ken Scott]

But with CPI at around 9.4%, do we really anticipate the government holding to this agreement?

Well they held to it last year when it was 3.1% even though it didn’t take effect until this Apr by which time headline inflation was much higher and increasing. It would be quite a step to not pay it, whereas for those still serving they would be merely agreeing to the figure determined by the independent pay review body.

[N_1]

Agree. The only means to influence current renumeration for those serving ironically is to leave. Let's not dress this up to be something it isn't, this is a 7% pay cut. I have no idea how far our pay has actually fallen behind inflation since 2010?

[Bob Viking]

I love the RAF. I have greatly enjoyed my time in the RAF, but I made the decision earlier this year to leave and I will be out within a few weeks.

I fully understand that the MOD does not have a bottomless pit of cash. Which is why, to satisfy my financial ambitions, I decided to part company. I may be back one day but, for now, the only solution for me was to leave.

The small pay rise before I draw my 23 year AFPS 75 (thankyou Mcloud) PAS pension will not have done me any harm though.

BV

[Ken Scott]

OMG BV, with you gone who will be left to defend the modern RAF against all the previously departed complainers?!

Best of luck in your future (better remunerated) endeavours.

[reds & greens]

NHS Porters and Cleaners - 9.3%
Nurses - 5%
Police - 5%
Doctors and Dentists - 4.5%
Military - 3.75%

The “Ukraine Bonus” clearly didn’t have any effect.
I got out in 2013, set up my own Business (hobby really), and for 2022 I've just awarded myself more shareholder values of 20%. The grass can be greener; get out, get valued, and collect the green dollar.

[kintyred]

The thing that stood out for me from the AFPRB report was the proposal to pay all aircrew from a consolidated pay scale. The aim is to reward experience and qualifications, presumably with a view to retaining those SQEP individuals. As ever the devil will be in the detail but there is at least an acknowledgment that remuneration for the sharp end needs to be more competitive.

[Doctor Cruces]

Glad to see they have capped accom at 1%. I remember one year when we had a pay rise the MQ rent went up so much I was actually 50p a week worse off after the pay increase. If we had one more child we would have been elligable for Family Income Suppliment (yes that REALLY dates me). One of my colleagues with three children actually claimed and got it and was carpeted for bringing the RAF into disrepute by the boss (goodness knows how they found out) but he told him to stick it (or words to that effect) and got away with it. At least we seem to be paid somewhat better than that these days although still not fully valued.

[BEagle]

Remember the 'Waddington Wives' protest in the 1970s? THAT got the government's attention!!

[trim it out]

Recommended £30k RP for 4 year RoS on Watchkeeper is a pretty good deal for the Gunners!

Will be interested in the detail for SNCO pilots and the proposed 12 and 15 year point RPs, many will probably still be under the initial 6 year RoS when they hit those timings so likely not eligible I'd have thought?

[RAFEngO74to09]

3.75% for those still serving seems pretty miserly.

Whereas according to the CTP website, Armed Forces pensions, once awarded, are adjusted in April each year by the Consumer Price Index (CPI). The CPI rate used is the CPI headline rate for the September prior to the April adjustment the following year. This rate is formally announced in October each year.

But with CPI at around 9.4%, do we really anticipate the government holding to this agreement? Perhaps encouraging is the announcement that, for the State Pension, the 'triple lock' will be applied for 2023....meaning a rise in accordance with inflation.

I remember reading somewhere that there was a capped maximum rise for UK Armed Forces Pensions regardless of the CPI the previous September. I thought it was 5% but I just checked back and found I got 5.2% in 2011 so if there is a cap it's higher.

[OldnDaft]

So a real terms pay cut, just what people need in a Cost of Living crisis. I guess the foodbank on station at Coningsby will be seeing much more business.......

[BEagle]

I've never heard of any 'capped maximum rise for UK Armed Forces Pensions regardless of the CPI', does such a thing actually exist?

CPI is now 10.1%, so if it's the same in September, I would assume that the next AFP rise in 2023 will also be 10.1%.

Regarding the UK State Pension, as I deferred my claim for several years, I receive an enhanced pension which is 67% higher than the normal state pension. Is any annual pension increase only applied to the normal state pension, or to the enhanced figure?

[Tocsin]

The 5% cap applies to a lot of private sector defined benefit schemes, not as far as I am aware to public sector schemes.

However for private sector pensioners, this 5% cap is an average over the 'life' of the payment to an individual - so if you have had several years of <5% increases the 10+% due this year _should_ be paid in full. Check specific scheme documents for the detail!

BEagle - the uprating _should_ apply to the whole of the basic state pension. There were odd issues with SERPS upratings a few years ago, so a lot depends on when your normal pension age was...

[BEagle]

I'm sure that, given the reintroduction of the 'triple lock', the basic state pension would be increased by CPI.

My state pension age was before 6 Apr 2016, so I was able to take advantage of the extra state pension scheme of 1% for every 5 weeks of deferral, ultimately reaching 67%.

My weekly state pension rate is £153.83 (normal) + £102.76 (deferred supplement) = £256.59. So if the state pension is increased by 10.1% for 2023, would that mean £169.37 (normal) + £113.14 (deferred supplement) = £282.51? Or £169.37 (normal) + £102.76 (current deferred supplement) = £272.13? DWP states that those who defer will receive 'a higher weekly State Pension for the rest of your life', so I'm hopefully assuming that the annual pension increase rate will apply to the whole of my pension.

Has anyone with a pre-6 Apr 2016 state pension age, who has deferred their application, any experience of this in previous years?

[NRU74]

Beags,
I was 65 in 2008 and I spent some time doing the maths and considered in my case it wasn't worth it, so I didn't take the option.
Looks like you'd foregone about six and a half years of your pension.
My State Pension is £224-13 consisting of a basic SP of £141-85 plus a pre '97 addition of £34-11 plus post '97 of £42-66 plus graduated retirement benefit (whatever that is) of £5-51.
As far as I'm aware the triple lock only applied to the basic SP and the rest was increased by a smaller amount
It was difficult to get a definite answer from the Forces Pensions Society especially if you were still working - and I was.
So, don't know whether it was the right or wrong decision !

[Paying Guest]

I'm sure that, given the reintroduction of the 'triple lock', the basic state pension would be increased by CPI.

My state pension age was before 6 Apr 2016, so I was able to take advantage of the extra state pension scheme of 1% for every 5 weeks of deferral, ultimately reaching 67%.

My weekly state pension rate is £153.83 (normal) + £102.76 (deferred supplement) = £256.59. So if the state pension is increased by 10.1% for 2023, would that mean £169.37 (normal) + £113.14 (deferred supplement) = £282.51? Or £169.37 (normal) + £102.76 (current deferred supplement) = £272.13? DWP states that those who defer will receive 'a higher weekly State Pension for the rest of your life', so I'm hopefully assuming that the annual pension increase rate will apply to the whole of my pension.

Has anyone with a pre-6 Apr 2016 state pension age, who has deferred their application, any experience of this in previous years?

Beags,

My State pension age was Dec 2010, but I deferred by 5 years for a 50% uplift. I have just checked my Apr 2022 notification of payment rates against my Apr 2021 notification and this showed the following increases:
Basic State Pension went up by 3.09%
Pre 97 additional State Pension: 3.10%
Post 97 additional State Pension: 3.05%
Extra basic sState Pension: 3.11%
Extra additional State Pension: 3.12%
Graduated Retirement Benefit: 3.06%

This would seem to indicate that the same uplift is applied to all elements.

[BEagle]

Thanks very much for the info., Paying Guest!

Deferring has suited me well, although the change in tax code and reduced monthly AFP payments to reflect the State Pension will probably take a while to settle down.....

[teeteringhead]

BEags et al

Another factor to add into whether or not to defer the State Pension is of course National Insurance . At whatever age you take the State Pension (if you are still working) you also stop paying NI contributions, which can be a significant figure.

But it remains a personal decision informed by personal factors.

[4everAD]

Thanks very much for the info., Paying Guest!

Deferring has suited me well, although the change in tax code and reduced monthly AFP payments to reflect the State Pension will probably take a while to settle down.....
Excuse my ignorance but does/will my RAF pension get reduced when i claim my state pension?

[BEagle]

No it won't! Your gross AFP will remain unchanged but there will be an amendment to your tax code to take your state pension (which is paid gross) into account.

For example my monthly net amount for July was £162.20 less than for June. This was due to a tax code change and took into account estimated tax owed for 2022-2023 when I started receiving my basic state pension. As that didn't take the deferred extra into account, I fully expect a further reduction in net AFP from August.

[4everAD]

Cheers Beags, I try to get my head around pensions but it gets very confusing very quickly!

[k3k3]

I was taken by surprise when I got the letter from HMRC saying my tax code had changed from 1470L to 1010L due to now being in receipt of the state pension. They get 40% of it back anyway.

[langleybaston]

3.75% for those still serving seems pretty miserly.

Whereas according to the CTP website, Armed Forces pensions, once awarded, are adjusted in April each year by the Consumer Price Index (CPI). The CPI rate used is the CPI headline rate for the September prior to the April adjustment the following year. This rate is formally announced in October each year.

But with CPI at around 9.4%, do we really anticipate the government holding to this agreement? Perhaps encouraging is the announcement that, for the State Pension, the 'triple lock' will be applied for 2023....meaning a rise in accordance with inflation.

Yes I do expect my CS pension to to increased accordingly. Cynical reason? The demographic in which they sit votes blue, not red, in the main. And goes out in the rain to vote, or organises a postal vote.
Simple.

[BEagle]

Does anyone now whether today's 10.1% CPI figure will be applied to current AFP rates??

[Lima Juliet]

Does anyone now whether today's 10.1% CPI figure will be applied to current AFP rates??

Yep… 10 Apr 23 :ok:
https://forcespensionsociety.org/2022/10/cpi-increase-announced/

[Party Animal]

Not so sure having read your link LJ. The final sentence had the words ‘normally formalised in law in January’, which to my mind in these uncertain times, may offer a get out clause to whoever is running our country then!