1 Billion over budget?
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Join Date: Feb 2006
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1 Billion over budget?
Did I read correctly over the weekend that the MoD will be paying back 350 million per year, for the next three years, to the treasury due to overspend. If this is true where on earth is this money going to be saved if we are to continue with the current tasks. I read that future procurement is at risk. Bad news for sure, but true?
Rumour has it by cutting pension gratuity by 25% for all pers leaving after Apr 08 !!!
I suspect trying to change the ToS for thousands of people will be an interesting exercise and there would probably be enough people to launch a class action against the MoD if they did try it.
The recent move to AFPS 05 was a similar thinly disguised attempt to save money, but even then they realised that they had to give current serving people the option to stay on 75 or move over to 05. Don't buy it for one bit that they will be able to slash gratuities - watch the sudden efflux of people leaving before the deadline if they do. However, this may be linked to some finance act which will probably limit how much you can commutate your pension which should save a few quid i nthe short term.
Melchett,
"which will probably limit how much you can commutate your pension which should save a few quid in the short term."
Spot on, I understand that's exactly what they propose to do. I believe the max commutable amount will be 25% on any pension earned after 1 April 2008, but remaining at 50% before that date. Regrettably, the information source escapes me though, and IS unconfirmed.
Bugger if you're caught in the pension trap.....
"which will probably limit how much you can commutate your pension which should save a few quid in the short term."
Spot on, I understand that's exactly what they propose to do. I believe the max commutable amount will be 25% on any pension earned after 1 April 2008, but remaining at 50% before that date. Regrettably, the information source escapes me though, and IS unconfirmed.
Bugger if you're caught in the pension trap.....
Last edited by Jobza Guddun; 13th Nov 2007 at 20:17. Reason: Added the unconfirmed bit!
Background Information
The Daily Telegraph carried an article on the 10th Nov:-
Telegraph article
Quote from article - An MoD spokesman said: "We have agreed that where the costs of UORs exceed a jointly agreed estimate, MoD will repay 50 per cent of the excess costs two years later."
Quite where the money will come from, of course, is not identified.
LL
Telegraph article
Quote from article - An MoD spokesman said: "We have agreed that where the costs of UORs exceed a jointly agreed estimate, MoD will repay 50 per cent of the excess costs two years later."
Quite where the money will come from, of course, is not identified.
LL
