SDSR - Redundancy Package?
Join Date: Aug 2010
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From my research (and I'm on the 05 pension so 06 redundancy package) for me it'd be whichever is the least of the following:
Final relevant earnings (FRE) as calculated for EDP (ie: not including specialist pay) divided by 8 then multiplied by number of years and days served to 4 decimal places.
OR
FRE divided by 8 then multiplied by number of years and days remaining in service if not redundancy wasn't on the cards.
So, if I joined as Sgt aircrew in 2004 (I did!) I'd be looking at about £29800 as a lump sum (based on Sgt level 5 as FRE and 2016 as planned exit date) and a preserved pension of £11600 lump sum and £3800 p/a.
The chapters in the JSP for AFRS 75 leaving after 6 Apr 2010 state they are 'Deliberately Blank - Rules Yet To Be Published'.
I hope that this is some use to people but I'd suggest that you have a look at JSP 764 Part 5 and please, I'm no expert, so don't base you're calculations on mine as they may well be wrong! Good luck....
Final relevant earnings (FRE) as calculated for EDP (ie: not including specialist pay) divided by 8 then multiplied by number of years and days served to 4 decimal places.
OR
FRE divided by 8 then multiplied by number of years and days remaining in service if not redundancy wasn't on the cards.
So, if I joined as Sgt aircrew in 2004 (I did!) I'd be looking at about £29800 as a lump sum (based on Sgt level 5 as FRE and 2016 as planned exit date) and a preserved pension of £11600 lump sum and £3800 p/a.
The chapters in the JSP for AFRS 75 leaving after 6 Apr 2010 state they are 'Deliberately Blank - Rules Yet To Be Published'.
I hope that this is some use to people but I'd suggest that you have a look at JSP 764 Part 5 and please, I'm no expert, so don't base you're calculations on mine as they may well be wrong! Good luck....
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Flying pay is not included I have been reliably told, and that brings up another interesting point, how safe is flying pay/PA, PM said op allowance will remain but other millitary allowances will be reviewed.
On a ground tour? receiving flying pay? we will see.
On a ground tour? receiving flying pay? we will see.
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Doubt whether PA would be at risk* - depending on how long one has been on that pay spine of course.
Anything's possible in the current climate though.
*That is with regard to whether PA pay is taken into account when calculating the pay-off. or whether it will revert to basic + flying pay.
Anything's possible in the current climate though.
*That is with regard to whether PA pay is taken into account when calculating the pay-off. or whether it will revert to basic + flying pay.
Last edited by Willard Whyte; 22nd Oct 2010 at 13:39.
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ghostnav:
Do you have any further information on this because my other half who works at some minor MOD place near Britol P'way can’t seem to find anything and it was not mentioned in the brief they had yesterday??
They were, however, told that there will be more that one package and the rules for the later package would mean a considerably less amount of wonga.
Have to say that 21 months of my wife’s pay would still be pretty measly in the big scheme of things, but hey ho.
Thanks
Finally, the Civil Service 2010 Redundancy Pay is already out this year. There will not be another. They get 9 mths if forced out, and wait for it, 21 mths if you volunteer. Not sure if that is tax free or not.
They were, however, told that there will be more that one package and the rules for the later package would mean a considerably less amount of wonga.
Have to say that 21 months of my wife’s pay would still be pretty measly in the big scheme of things, but hey ho.
Thanks
Finally, the Civil Service 2010 Redundancy Pay is already out this year. There will not be another. They get 9 mths if forced out, and wait for it, 21 mths if you volunteer. Not sure if that is tax free or not.
Also it is up to 9 or 21 months - 1 month per year service I believe.
Last edited by radar101; 22nd Oct 2010 at 17:23. Reason: added last para
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Please forgive me for posting again here.
Is it the case that if you are made redundant whilst on AFPS05, AND you already have earned a Pension due to age & length of Service, you would get a Pension Gratuity AND a Redundancy payment plus your EDP?
E.g. nearing 50, done over 25 years, passed IPP and signed onto 55 as PAS i.e. 6 years to do:
1. If you jump:EDP plus Gratuity.
2. If pushed:EDP plus Gratuity plus 12 months Redundancy????
2a. If pushed just EDP plus Redundancy payment and no Gratuity i.e. Gratuity "forfeited" for one lump sum payment of 12 months pay.
I have contacted the Pensions Society and JPAC, but JPAC cannot help until "all details and criteria are known" and the POC at the Society is back next week.
Good Luck to you all.
Is it the case that if you are made redundant whilst on AFPS05, AND you already have earned a Pension due to age & length of Service, you would get a Pension Gratuity AND a Redundancy payment plus your EDP?
E.g. nearing 50, done over 25 years, passed IPP and signed onto 55 as PAS i.e. 6 years to do:
1. If you jump:EDP plus Gratuity.
2. If pushed:EDP plus Gratuity plus 12 months Redundancy????
2a. If pushed just EDP plus Redundancy payment and no Gratuity i.e. Gratuity "forfeited" for one lump sum payment of 12 months pay.
I have contacted the Pensions Society and JPAC, but JPAC cannot help until "all details and criteria are known" and the POC at the Society is back next week.
Good Luck to you all.
2.... although I can't guarantee it is 12 months redundancy payment!
Also 1 is only correct if you PVR. If you apply for voluntary redundancy you will get some form of redundancy payment as well as EDP + gratuity!
Also 1 is only correct if you PVR. If you apply for voluntary redundancy you will get some form of redundancy payment as well as EDP + gratuity!
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Just this Once.
I'm on about the lump sum that you get on leaving the Service after or at your IPP under AFPS05.
Then of course you also get the monthly "pension"(EDP) payments again after or at your IPP.
However, if you are made redundant under this SDSR, having already served enough time to get a lump sum plus monthly "pension"(EDP), would you also get a redundancy lump sum in addition to the above?
(Under AFPS05 if you leave before your IPP you get a reduced lump sum if you will based on three times your deferred pension which is payable from age 65. You also get reduced monthly "pension"(EDP), payments until age 65. You also get a second lump sum at age 65.
If you left at 55 - under AFPS05 - you would get a single lump sum based on three times your monthly pension - and a (very) generous monthly "pension"(EDP), payout.
I edited this as Biggus was transmitting!!! Sorry!!!
I'm on about the lump sum that you get on leaving the Service after or at your IPP under AFPS05.
Then of course you also get the monthly "pension"(EDP) payments again after or at your IPP.
However, if you are made redundant under this SDSR, having already served enough time to get a lump sum plus monthly "pension"(EDP), would you also get a redundancy lump sum in addition to the above?
(Under AFPS05 if you leave before your IPP you get a reduced lump sum if you will based on three times your deferred pension which is payable from age 65. You also get reduced monthly "pension"(EDP), payments until age 65. You also get a second lump sum at age 65.
If you left at 55 - under AFPS05 - you would get a single lump sum based on three times your monthly pension - and a (very) generous monthly "pension"(EDP), payout.
I edited this as Biggus was transmitting!!! Sorry!!!
JTO
If you're not on 05 it doesn't really bother you - and I seem to have spent the last 5 years explaining to people what AFPS 05 is all about, but here we go again....
The government changed the rules, so you can't claim a pension before the age of 55, so AFPS introduced EDP. EDP is effectively a "pension", it looks like a pension, walks like a pension and sounds like a pension. If you have qualified for an immediate EDP then, just like a pension under AFPS75, YOU ARE PAID IT FROM THE DAY YOU LEAVE.
The calculation of the value of EDP is more complicated, depending on when you leave. It is % value of your ultimate "pension". However, if you are AFPS05 and you leave having earned a pension, but before 55, you get a gratuity of 3 x "pension", and a paid monthly EDP of a certain % of that "pension" figure. You also get a second gratuity, of 3 x "pension", index linked (but probably at CPI now) when you reach 65....
It gets even more complicated than that, and I have tried to keep the explanation simple for brevity, but hopefully that explains the principle.
If you're not on 05 it doesn't really bother you - and I seem to have spent the last 5 years explaining to people what AFPS 05 is all about, but here we go again....
The government changed the rules, so you can't claim a pension before the age of 55, so AFPS introduced EDP. EDP is effectively a "pension", it looks like a pension, walks like a pension and sounds like a pension. If you have qualified for an immediate EDP then, just like a pension under AFPS75, YOU ARE PAID IT FROM THE DAY YOU LEAVE.
The calculation of the value of EDP is more complicated, depending on when you leave. It is % value of your ultimate "pension". However, if you are AFPS05 and you leave having earned a pension, but before 55, you get a gratuity of 3 x "pension", and a paid monthly EDP of a certain % of that "pension" figure. You also get a second gratuity, of 3 x "pension", index linked (but probably at CPI now) when you reach 65....
It gets even more complicated than that, and I have tried to keep the explanation simple for brevity, but hopefully that explains the principle.
covec,
If you have qualified for an immediate pension then you get an accompanying gratuity - the two are linked!!
Although I hate to say it, use the pension calculator, it will show you exactly (including a nice graphic) how much you will get, and when.
Any redundancy payment is on top of that, and any redundancy programme does not remove any of you earned rights under the pension scheme!
If you have qualified for an immediate pension then you get an accompanying gratuity - the two are linked!!
Although I hate to say it, use the pension calculator, it will show you exactly (including a nice graphic) how much you will get, and when.
Any redundancy payment is on top of that, and any redundancy programme does not remove any of you earned rights under the pension scheme!
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But would "they" also give you a redundancy lump sum too if pushed?
If I find that one out I will post here too - although Biggus is well up to speed and seems to think so - thanks Biggus.
If I find that one out I will post here too - although Biggus is well up to speed and seems to think so - thanks Biggus.
covec,
If you can get on the intranet and find a copy of JSP 764, PAGE 5-2-5 includes an example (example 3) of someone leaving after EDP 18/40 point with at least 4 years uncompleted service.
It calculates the compensation figure (redundancy payment) and specifies "other benefits" as:
EDP lump sum (i.e. gratuity)
EDP income payable immediately.
It's in black and white in the JSP, you get your gratuity if made redundant. You have earned the immediate gratuity as part of your pension rights, they don't take it away if they make you redundant.
If you can get on the intranet and find a copy of JSP 764, PAGE 5-2-5 includes an example (example 3) of someone leaving after EDP 18/40 point with at least 4 years uncompleted service.
It calculates the compensation figure (redundancy payment) and specifies "other benefits" as:
EDP lump sum (i.e. gratuity)
EDP income payable immediately.
It's in black and white in the JSP, you get your gratuity if made redundant. You have earned the immediate gratuity as part of your pension rights, they don't take it away if they make you redundant.
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OK, thanks for that.
I will try to redirect people here from the new thread that I had started.
JTO - I assume that AFPS75 still gives you guys a lump sum payable on leaving - if you have reached or passed your IPP? If so, then my query also relates to you if made redundant.
I will try to redirect people here from the new thread that I had started.
JTO - I assume that AFPS75 still gives you guys a lump sum payable on leaving - if you have reached or passed your IPP? If so, then my query also relates to you if made redundant.
While I don't have details of AFPS75 redundancy payments to hand, the general principle still applies that, in earning an immediate pension you have also earned the accompanying gratuity.
No redundancy scheme takes that away, rather it simply compensates you (possibly inadequately) for your loss of earnings due to your early terminated employment.
No redundancy scheme takes that away, rather it simply compensates you (possibly inadequately) for your loss of earnings due to your early terminated employment.