AFPS change from RPI to CPI
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AFPS change from RPI to CPI
Military Pensions
The Government have altered how your Military Pension is affected by annual inflation. * They have changed the link from RPI to CPI which will decrease the value of your pension year on year.* Below are some examples of the loss, which have been supplied by the Forces Pension Society, illustrating the cost of the change from RPI to CPI
a. Disabled double amputee 28 year old Corporal £587,000 by age 70.
b. 40 year old Sergeant Royal Marines £212,000 by age 85.
c. 40 year old Squadron Leader £319,000 by age 85.
*
Please sign the petition which is very easy to do, simply click on the link below:
*Protect Military Pensions
The petition site has a blog along with a question and answer facility, do please use it.*
To help make the petition grow please pass this information on to friends and colleague's. * Support from both ex military and none military personnel for the petition is important as we believe the pension is a strong part of the Military Covenant which our Government is signed up to.
The Government have altered how your Military Pension is affected by annual inflation. * They have changed the link from RPI to CPI which will decrease the value of your pension year on year.* Below are some examples of the loss, which have been supplied by the Forces Pension Society, illustrating the cost of the change from RPI to CPI
a. Disabled double amputee 28 year old Corporal £587,000 by age 70.
b. 40 year old Sergeant Royal Marines £212,000 by age 85.
c. 40 year old Squadron Leader £319,000 by age 85.
*
Please sign the petition which is very easy to do, simply click on the link below:
*Protect Military Pensions
The petition site has a blog along with a question and answer facility, do please use it.*
To help make the petition grow please pass this information on to friends and colleague's. * Support from both ex military and none military personnel for the petition is important as we believe the pension is a strong part of the Military Covenant which our Government is signed up to.
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FPS is already one of the oldest established bodies fighting for mil pensioners rights. I think I can trust Major General John Moore-Bick and David Marsh et al to spend my annual sub wisely on my behalf, although I am young enough to be able to justify an occasional kick in the nuts for the 'good' (mmm) of reducing the Defecit. But there's no point in banging on about one component in personal financial planning if;
- You aren't using both annual personal allowances wisely, and planning ahead now for the incremental rises when retired.
- You aren't getting 20% tax relief on pension contributions up to £3600 per annum for a non working wife/husband/civil partner.
- You are paying through the nose for chronically expensive (invariably) High Street Equity based ISAs.
- You aren't using your ISA allowance at all.
- You arent considering other tax efficient strategies.
- You are investing in a way that isn't best for you anyway.
- You are chucking money down the drain into a Cash ISA without assessing why - such as having the need for an amount of ready cash (it might be tax efficient, but it will be paying something like .5% with inflation running at nearly 5%).
- Your personal pension fund choices are not appropriate and/or expensive. What - you haven't considered one, or (FS) AVCs?
- You are not using Form R85 and getting bank interest paid to a non tax paying other half.
- You are not using Form JPA010 to reclaim some rated life insurance.
- You have money parked in cash that is being eroded in value because it is paying you nothing. Assuming an annual inflation rate of 5%, £1,000.00 in 2016 will be needed to buy the same that £773.78 can today.
- You haven't battered down your Utility providers in price, for at least 12 months.
- You haven't told the bank you want to renegotiate a bank loan (!) to your advantage.
- You haven't even thought about re-mortgaging options because its too difficult.
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Unfortunately the Government took away the facility of petitions on their website so we were forced to use this one. The charge is completly voluntary and you just ignore the page and move on. I do understand your immediate thoughts though on being presented with the contribution request, I felt the same, but just ignore it.
Please do write to your MP as it is very important. Our number 2 Newsletter gives some very good tips on the procedure and also points you in the direction of the correct ministers.
http://jlrrac.org/gallery/albums/use...wsletter_2.pdf
But, I do urge you also to sign the petition which we will present at number 10 during the Cenotaph week in November. We would welcome as many people along as possible to witness and support that.
Protect Military Pensions
Tony Clatworthy
Please do write to your MP as it is very important. Our number 2 Newsletter gives some very good tips on the procedure and also points you in the direction of the correct ministers.
http://jlrrac.org/gallery/albums/use...wsletter_2.pdf
But, I do urge you also to sign the petition which we will present at number 10 during the Cenotaph week in November. We would welcome as many people along as possible to witness and support that.
Protect Military Pensions
Tony Clatworthy
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Tony,
I think the petition system is being replaced by the right for the public to have a debate in the Commons, if public interest in a particular subject reaches a certain benchmark?
I think the petition system is being replaced by the right for the public to have a debate in the Commons, if public interest in a particular subject reaches a certain benchmark?
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Errrrr yes but... if you get more than 500 signatures it goes as a Private Members bill which takes ten minutes of talking and then it's never seen again. Which I think is a good way of burying it. We are trying to get the Government to change it's mind with this. I think that's very unlikely but, they say they must do this because of the current debt. If that is the case why not just make it a temporary measure, I would be content with that as would many others. Or put in a catch all clause as they have for the State Pension. I'm not in this for myself as at nearly 70 it's not going to effect me but a young lad who's lost both legs or a young widow it will effect them.
While I'm on here anyone out there remember the Skeeter and Souix ? Now those were the days ....hand held map and keep well out of cloud !
While I'm on here anyone out there remember the Skeeter and Souix ? Now those were the days ....hand held map and keep well out of cloud !
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Agreed; it will affect some more than others. At least AFCS has been improved no end recently for those most in need though.
Perhaps you are boxing them into a corner - have you suggested that any exemption might be temporary or whilst we are still involved in Afghan? Perhaps you could suggest that those most vulnerable, with a War Pension, be granted an exemption?
Perhaps you are boxing them into a corner - have you suggested that any exemption might be temporary or whilst we are still involved in Afghan? Perhaps you could suggest that those most vulnerable, with a War Pension, be granted an exemption?
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Sailing when I can but only in the Med or Caribbean.... Solent has lost its charm.
Who's that out there then ? (ex RAF through Kiel?)
Check out the Ealy Day Motions in the Commons as the Labour Party are doing just that.
Google...... 'Early Day Motion 1367'
Who's that out there then ? (ex RAF through Kiel?)
Check out the Ealy Day Motions in the Commons as the Labour Party are doing just that.
Google...... 'Early Day Motion 1367'
Annual Pension Increases
F3sRBest
Pensions already in payment are increased wef each new financial year beginning in April by the (now) CPI rate (was RPI) of the previous September. Thankfully the Government is not yet reducing pensions if the CPI is negative !
This will mean an increase of 3.1% (vs 4.6%) in April 2011 for those already in receipt of a pension.
Pensions already in payment are increased wef each new financial year beginning in April by the (now) CPI rate (was RPI) of the previous September. Thankfully the Government is not yet reducing pensions if the CPI is negative !
This will mean an increase of 3.1% (vs 4.6%) in April 2011 for those already in receipt of a pension.
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That smal % differance over the years will mean the loss of nearly £600,000 to a widow of a 30 year old S/Sgt or other examples of the loss, which have been supplied by the Forces Pension Society, illustrating the cost of the change from RPI to CPI
a. Disabled double amputee 28 year old Corporal £587,000 by age 70.
b. 40 year old Sergeant Royal Marines £212,000 by age 85.
c. 40 year old Squadron Leader £319,000 by age 85.
a. Disabled double amputee 28 year old Corporal £587,000 by age 70.
b. 40 year old Sergeant Royal Marines £212,000 by age 85.
c. 40 year old Squadron Leader £319,000 by age 85.
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I hate to be a pedant but ... No one is losing anything.
People are maybe, at worst, going to be getting a lower increase in some years than they might have been anticipating, had they done their financial planning based on recent RPI figures.
But ... the historical differentials between RPI and CPI you are basing your analysis on should not be taken as a guarantee that future rates for either index will always have the same spread.
And ... selecting a different index is no different to changing the items in that basket of goods that make up that index, or changing the relative weighting within that basket. Both have occured quite frequently in the past, by governments of all persuasions, and neither change has ever attracted much comment at all. An individual's actual exposure to inflation is unique to their spending patterns; an index is just a benchmark to inform macro-economic policy.
Finally .... if you are going to compound an arbitrary differential between two indexes over a large number of years in order to generate your rather alarmist totals, you should at least discount that figure back into a present value (which would partially unwind the mathematical effect of this compounding over a large number of iterations to a somewhat smaller number). Whilst this would not exactly help your argument, it would be a little more accurate, and therefore more credible.
In the meantime, though - in this present financial climate people are already feeling wounded and vulnerable. Many do not fully understand monetary or fiscal policy - so don't scare them with your depressing, alarmist hype.
To put it another way - your premise is that in 2056, a then 85 year old ex-Royal Marine will be worse off to the tune of £212k if he retired this year as a Sgt. If that is the case, lets go down to the RBL and find a bunch of Royals who retired in 1966 and ask how many if them actually have this marvellous £212k nest egg that they all got, but we are going to 'lose'. I'll bet you won't find many.
People are maybe, at worst, going to be getting a lower increase in some years than they might have been anticipating, had they done their financial planning based on recent RPI figures.
But ... the historical differentials between RPI and CPI you are basing your analysis on should not be taken as a guarantee that future rates for either index will always have the same spread.
And ... selecting a different index is no different to changing the items in that basket of goods that make up that index, or changing the relative weighting within that basket. Both have occured quite frequently in the past, by governments of all persuasions, and neither change has ever attracted much comment at all. An individual's actual exposure to inflation is unique to their spending patterns; an index is just a benchmark to inform macro-economic policy.
Finally .... if you are going to compound an arbitrary differential between two indexes over a large number of years in order to generate your rather alarmist totals, you should at least discount that figure back into a present value (which would partially unwind the mathematical effect of this compounding over a large number of iterations to a somewhat smaller number). Whilst this would not exactly help your argument, it would be a little more accurate, and therefore more credible.
In the meantime, though - in this present financial climate people are already feeling wounded and vulnerable. Many do not fully understand monetary or fiscal policy - so don't scare them with your depressing, alarmist hype.
To put it another way - your premise is that in 2056, a then 85 year old ex-Royal Marine will be worse off to the tune of £212k if he retired this year as a Sgt. If that is the case, lets go down to the RBL and find a bunch of Royals who retired in 1966 and ask how many if them actually have this marvellous £212k nest egg that they all got, but we are going to 'lose'. I'll bet you won't find many.
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Good argument...... but lets go back in time.... The Armed Forces Pay Review Body who recommends any pay adjustments takes into account a number of issues before completing their report and recomendations.
The X Factor takes account of:
It's a none contributory scheme = a minus factor.
RPI was used as the indicator = a minus factor.
Therefore the X Factor added was around 3.5% (not sure how that is used within the recommendation) so your pay rises were reduced in the past because of indexing to RPI and now your losing out.
CPI does not take account of the cost of housing - Mortgage, rent, house insurance, council tax, maintenance etc.... many ex service personnel don't get on the housing market until they are retired at 40.
Read the blog on the petition website many examples.........
(It's great being retired never had time for all this S**T before)
The X Factor takes account of:
It's a none contributory scheme = a minus factor.
RPI was used as the indicator = a minus factor.
Therefore the X Factor added was around 3.5% (not sure how that is used within the recommendation) so your pay rises were reduced in the past because of indexing to RPI and now your losing out.
CPI does not take account of the cost of housing - Mortgage, rent, house insurance, council tax, maintenance etc.... many ex service personnel don't get on the housing market until they are retired at 40.
Read the blog on the petition website many examples.........
(It's great being retired never had time for all this S**T before)
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Tony
I admire your desire to ensure that those who have left HM's Armed Forces get the best possible deal in respect of their Pensions - but I am afraid that the position of HMG will be that the Nations finances are in dire straights and that all must "share the pain".
I have served with people who volunteered from the Dominions and Colonies to serve in the RAF who suddenly found out on retirement that HMG "reserves the right" to tax "Government Pensions" in the UK no matter where in the World the Recipient resides. Ex Service Personnel who retire and return to their Country of origin or emigrate after retirement will find that they do not receive the "Winter Cold Weather Payment" unless they were in receipt of that payment PRIOR to emigrating.
It would appear that the note left for the incoming Chancellor after the election which said "I'm sorry but there is no money" was quite accurate.
I admire your desire to ensure that those who have left HM's Armed Forces get the best possible deal in respect of their Pensions - but I am afraid that the position of HMG will be that the Nations finances are in dire straights and that all must "share the pain".
I have served with people who volunteered from the Dominions and Colonies to serve in the RAF who suddenly found out on retirement that HMG "reserves the right" to tax "Government Pensions" in the UK no matter where in the World the Recipient resides. Ex Service Personnel who retire and return to their Country of origin or emigrate after retirement will find that they do not receive the "Winter Cold Weather Payment" unless they were in receipt of that payment PRIOR to emigrating.
It would appear that the note left for the incoming Chancellor after the election which said "I'm sorry but there is no money" was quite accurate.
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Just an aside if you have an Oc/Pension, as well. It remains on RPI, for annual pay increases, if stipulated in your pension agreement. QUOTE "For those schemes that expressly refer to pension payments being linked to RPI, they cannot by law change the rules because it would be a worsening of benefits "