Pensions. Breaking News.....
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The MoD says the reforms were conceived after consultation with more than 17,500 personnel in the UK and overseas.
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Sounds like an NPAS conference, where the management told the congregation that they had come up with certain decisions after intense consultation with all the Unit Executive Officers (UEO's).
A shout came from the 'cheap seats'..."That's interesting, you have in front of you all the UEO's in the country and none of us have been consulted!!!"
A shout came from the 'cheap seats'..."That's interesting, you have in front of you all the UEO's in the country and none of us have been consulted!!!"
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No, not there but question
If pension age rises to 60 what happens to compulsory retirement at 55?
Also, the man's lying again like so many before him: our pay awards were always abated by a percentage to contribute towards pension. No, not a direct contribution each month but equally not true to say we made no contribution.
Best of luck to you all, I'm so glad to be well out of it.
If pension age rises to 60 what happens to compulsory retirement at 55?
Also, the man's lying again like so many before him: our pay awards were always abated by a percentage to contribute towards pension. No, not a direct contribution each month but equally not true to say we made no contribution.
Best of luck to you all, I'm so glad to be well out of it.
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So can anyone answer a quick question-if you leave after 2015 but you are not within 10 years of Full pension, ie over 44 last march, do we now have to serve until 40 to get a lump sum, pension from the end of our commission. I'm on AFPS 75 and plan to leave at 38/16 point-where do I, and thousands like me, stand? Its pretty clear what the case is for new-joiners and near-retirees but, as ever, the middle ground is left in a quagmire....This may have massive implications for people of my age approaching their 12 year option right now...
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I don't think you will get reserved rights. The rozzers pensions are about to be decimated. They have been given a heads up that they will have to work 17 extra years to get the SAME pension! If this goes through, potentially a bloke could leave on the friday at the 38 point with a pension. Another bloke due to leave on the next monday will have to wait 22 years......
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To take the 12-year option or not? That is the question.
The way I read it is that if you serve beyond your 40th birthday, you will be given a lump sum but no annual pension until you are 60; does anyone know how much that lump sum would be if you left after your 40th. Even if you are on AFPS75 it implies that everyone would be moved to the new scheme. They (Government & Mil hierarchy) are very vague in their statements. In hindsight, it was obvious that they were always looking at ways to make massive, scathing cuts to the overall pension costs. Personally, I exercised my 12-year option last year because I had absolutely no faith in whatever the new system would entsil and my IPP was 6 months after the changeover date. Another fincancial benefit to exercising your option versus PVRing is that you don't lose your flying pay;with the current 12-month PVR notice period that amounts to approx £15,000 for someone on the higher rate of flying pay. I wouldn't be surprised if the lump sum was significantly less than the current lump sum awarded at your IPP.
Last edited by Whirling Wizardry; 31st Jul 2012 at 20:37.
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The MoD says the reforms were conceived after consultation with more than
17,500 personnel in the UK and overseas.
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I am in the same fortunate position as Type 1106 - my pension has long been in payment. IIRC, the introduction of the military salary scheme in 1970 included an 'abatement' of the calculated salary of somewhere in the region of 9 - 12%. This, we were told, was to finance the military pension. So, when someone tells you all about the gold-plated non-contributory military pension you are going to enjoy, you can tell them they are wrong. You have contributed throughout your service by getting a smaller salary than you deserved.
I opted for voluntary redundancy and will be leaving this Dec for exactly this reason. I thought I may as well cut and run whilst I can preserve and take what I have earned before HMG decides military pensions were unaffordable. In my opinion, the writing has been on the wall for some time.
The inference from the BBC article is that you will need to serve until 40 to get a LUMP SUM, but no mention of annual pension until 65. I had heard rumours a last year that something like this was in the offing; this formed a major part of my decision to leave. Face it - we are broke and this debt spiral for Governments has only just begun.
Bill Gross, veteran Bond Investor, wrote a good piece in the FT this week saying that Bond Yields will rally in the near future and the 30yr US T-Bond Rally will end. Governments will need to inflate their way out of debt so in the near future expect interest rates of 7-8%. The sad thing is that leaving with full pension at 38 will mean a lean few years of monthly payments that will not keep pace with inflation. The index linking will kick in at 55 I presume, unless they push the age back to 60 for everyone? I think there will be a mass exedous from the services on this news.
What a kick in the teeth at the very time the Forces have effectively saved the Olympics. Trust no one.
The inference from the BBC article is that you will need to serve until 40 to get a LUMP SUM, but no mention of annual pension until 65. I had heard rumours a last year that something like this was in the offing; this formed a major part of my decision to leave. Face it - we are broke and this debt spiral for Governments has only just begun.
Bill Gross, veteran Bond Investor, wrote a good piece in the FT this week saying that Bond Yields will rally in the near future and the 30yr US T-Bond Rally will end. Governments will need to inflate their way out of debt so in the near future expect interest rates of 7-8%. The sad thing is that leaving with full pension at 38 will mean a lean few years of monthly payments that will not keep pace with inflation. The index linking will kick in at 55 I presume, unless they push the age back to 60 for everyone? I think there will be a mass exedous from the services on this news.
What a kick in the teeth at the very time the Forces have effectively saved the Olympics. Trust no one.
Ministry of Defence | Defence News | Defence Policy and Business | New Armed Forces pension proposed
Better news, and relief in blue below, from the MoD site but the last comments mean if you are 45 then you are ok; but below 45 may mean you get accrued benefits up to 2015 immediately, but have to wait until 60 for the service post 2015 to be paid? :
Benefits of the proposed new scheme include:
it creates one scheme for all - including reservists. There are currently several different Armed Forces pension schemes
Service personnel won't have to make any personal contributions to their pension
Service personnel will receive a tax-free lump sum and monthly income if they leave the Armed Forces at age 40 and have served for over 20 years. No other public service makes any pension payment that early
as recommended by Lord Hutton, the Normal Pension Age will be 60 - considerably lower than for other public service pensions
accrued pension rights have been protected so there is no change to the age at which those currently serving can draw their accrued benefits, which are based on final rank and salary
it is in line with Lord Hutton's recommendations and other public service schemes, moving to a pension based on career average earnings rather than final salary
all members of the Armed Forces Pension Scheme who were within ten years of their Normal Pension Age on 1 April 2012 will receive transitional protection and see no change in their pension age or the amount they receive at retirement.
Better news, and relief in blue below, from the MoD site but the last comments mean if you are 45 then you are ok; but below 45 may mean you get accrued benefits up to 2015 immediately, but have to wait until 60 for the service post 2015 to be paid? :
Benefits of the proposed new scheme include:
it creates one scheme for all - including reservists. There are currently several different Armed Forces pension schemes
Service personnel won't have to make any personal contributions to their pension
Service personnel will receive a tax-free lump sum and monthly income if they leave the Armed Forces at age 40 and have served for over 20 years. No other public service makes any pension payment that early
as recommended by Lord Hutton, the Normal Pension Age will be 60 - considerably lower than for other public service pensions
accrued pension rights have been protected so there is no change to the age at which those currently serving can draw their accrued benefits, which are based on final rank and salary
it is in line with Lord Hutton's recommendations and other public service schemes, moving to a pension based on career average earnings rather than final salary
all members of the Armed Forces Pension Scheme who were within ten years of their Normal Pension Age on 1 April 2012 will receive transitional protection and see no change in their pension age or the amount they receive at retirement.
Last edited by Grimweasel; 31st Jul 2012 at 22:08.
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******* ***** the lot of them. I would love to see what pension the MPs are due to draw.
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Emirates will be there. Might be worth letting them know there are plenty of us looking for a job if they change their tune on Ex Military service. BALPA membership is 24 quid per annum for current serving mil personnel and for those in ownership of a PPL whilst flying "mil aircraft on Civil register" you can use the legal services provided as part of the membership.
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Emirates will be there. Might be worth letting them know there are plenty of us looking for a job if they change their tune on Ex Military service. BALPA membership is 24 quid per annum for current serving mil personnel and for those in ownership of a PPL whilst flying "mil aircraft on Civil register" you can use the legal services provided as part of the membership.
Last edited by VinRouge; 31st Jul 2012 at 22:17.
So on transition in 2015 I'll have 25 years on 75 scheme. Are "we" saying that for the next 5 years of service to my LOS30 will give me no benefit till I'm 60?
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So Al,
the short of it as far as you can tell,
If you are on AFPS75 but are due to retire post AFPS changeover, we will still definitely get a lump sum and monthly payment our original 38 point, but to be able to claim any of the benefit from 2015 we will have to serve to 40 now instead?
AND, if you get PA, you will get your representative amount post 2015 if you were to PVR after the new 5 year PA ros? Any word on whether PA will exist past the introduction of the new employment model? Lots of hints in the last AFPRB regarding disparity between non PA and PA, I hope they arent planning to lower the bar for PA post NEW introduction.
I can sense a few bell rings down at PMA over the next week or two!
the short of it as far as you can tell,
Yup. Thats about the long and the short of it.
AND, if you get PA, you will get your representative amount post 2015 if you were to PVR after the new 5 year PA ros? Any word on whether PA will exist past the introduction of the new employment model? Lots of hints in the last AFPRB regarding disparity between non PA and PA, I hope they arent planning to lower the bar for PA post NEW introduction.
I can sense a few bell rings down at PMA over the next week or two!
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Vin,
My reading is that if you have accrued the 75 benefit which would allow you thegratuity before the point of transition and if you retire after it, then yourgratuity is yours - as agreed - when you leave.
If youreach the target for AFPS 75 after 2015, and then retire a little later, thenyou get the 75 benefits when you leave and the balance as FAFPS benefits andiaw those scheme rules.
But if not, then you have to tick the 20/40 box in order to get cash, or wait.
My reading is that if you have accrued the 75 benefit which would allow you thegratuity before the point of transition and if you retire after it, then yourgratuity is yours - as agreed - when you leave.
If youreach the target for AFPS 75 after 2015, and then retire a little later, thenyou get the 75 benefits when you leave and the balance as FAFPS benefits andiaw those scheme rules.
But if not, then you have to tick the 20/40 box in order to get cash, or wait.