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Old 13th Jul 2023, 20:29
  #41 (permalink)  
 
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Originally Posted by Lucifer Morningstar
... 'Why do the Armed Forces get the lowest pay award in the public sector?'.
Because the government know they'll do as they're told.
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Old 13th Jul 2023, 21:23
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Good grief, the same old doom mongers. “Knock it off with them negative waves”. It is not just 5% and a £1k bonus. This is what it actually is:

5% rise on Main Pay. Then £1k added. Then RRP(F) (flying pay for the old b^ggers) goes up 5.8%. All back dated from 1 Apr 23.

So as others have said, if you earn £50k Main Pay, then the new Main Pay is £52.5k. Then you add £1k to that salary, that is consolidated (ie. Pensionable) and baked in from now on. That makes £53.5k. So £50k to £53.5k is a 7% rise. Now, look at RRP(F), let’s say you get £15k, so with 5.8% uplift that is £15,870. So now for a flyer, that is £65k total rising to £69,370 - an increase of just over 6.7%.

Now, I know that isn’t quite the 8-9% CPI overall from Apr 22 to Apr 23, which the above 6.7% is trying to balance. But if we see inflation drop below 7% next month, as some predict, then we aren’t too far adrift. By Christmas predictions put inflation below 5%. If next year there is say a 1.5% over inflation pay rise - say a similar 6% again - then we will be no worse off.

Therefore, this is a fairly good result, with Government in a sticky situation. What happens next year will be the real crunch factor and don’t forget we are also due a General Election and yet another Integrated Review in 2025. So lots of variables on how this may play out.
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Old 13th Jul 2023, 21:41
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There is an excel pay calculator on DC at https://jive.defencegateway.mod.uk/docs/DOC-956095
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Old 14th Jul 2023, 11:48
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Originally Posted by Lima Juliet
Then you add £1k to that salary, that is consolidated (ie. Pensionable) and baked in from now on. That makes £53.5k. So £50k to £53.5k is a 7% rise.
LJ, I may have missed it, but I thought the £1K "bonus" was exactly that, a bonus and therefore not pensionable and not taken into account in any future pay awards.
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Old 14th Jul 2023, 17:28
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I may have missed it..

Originally Posted by Roland Pulfrew
LJ, I may have missed it, but I thought the £1K "bonus" was exactly that, a bonus and therefore not pensionable and not taken into account in any future pay awards.
You have missed it. The £1000 payment is not a bonus- it is a consolidated payment. That means it is taxable, but also pensionable and enduring. Ie it is added to your annual salary amount so that any percentage award in subsequent years will take into account this extra £1k
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Old 14th Jul 2023, 18:11
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Old 14th Jul 2023, 18:57
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Roland Pulfrew as BrianTrousers correctly states - it is not a “bonus”, but a neat way to put consolidated pay up but giving more to those less well paid. For example, give £1k more than to those on £50k it is a 2% rise, but for those on £100k it is only 1%.

The only snag is you can’t do that too often as no one will want to get promoted as the pay jumps are reduced.
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Old 14th Jul 2023, 20:10
  #48 (permalink)  
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Credit where it’s due, I think the AFPRB have played a blinder on this one. A bit like when they snuck the extra 1% raise a few years ago.

From a political point of view, the headline figure of 5% looks reasonable and restrained in these difficult times, especially compared to the demands being made by other public sector workers.

Meanwhile, the flat-rate £1k added to all pay increments essentially works out as a >12% pay rise for those at the bottom through to >5% for those at Brigadier \ Air Commodore level.

In sum, I wasn’t expecting more than 5-6% and I’m actually pleasantly surprised by my +6% overall rise. Real terms pay cut? Yes. Adding a fair chunk to my non-contributory pension? Also yes.
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Old 15th Jul 2023, 11:27
  #49 (permalink)  
 
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Some sensible responses above and the point about the £1K being consolidated (and therefore pensionable) is spot on - the impact is a greater benefit at the bottom where it's really needed. Nice too that the SFA charges are staying as is - the level of (non-)service being provided by the current set of clowns is bewildering in its levels of incompetence. That said, I am not sure the SLA is much better - it's the same company after all.

A genuine question though, are our pensions really non-contributory or is our pay abated to reflect the benefit?
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Old 15th Jul 2023, 11:48
  #50 (permalink)  

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I remember being disappointed by “poor” service annual pay rises.

To put the above in perspective..the last seven years of my flying career, working for a private aviation department, resulted in a total pay rise of a flat zero percent.
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Old 15th Jul 2023, 13:17
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A genuine question though, are our pensions really non-contributory or is our pay abated to reflect the benefit?
My understanding has always been that pay was abated by approximately 8% to cover the ‘non-contributory’ pension, your pension payments were then based on your net salary rather than the nominal gross one had you actually had your contributions deducted.

However like most, if not all public sector pensions, the value of your index linked pension is far more than your contribution, real or nominal.
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Old 15th Jul 2023, 16:52
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It is demonstrably non-contributory because if you opt out of it (I have no idea why you would) then you still get paid the same. It also does not squirrel away a pension pot for you. It is in effect an IOU note from the Government, written into UK Law, to keep paying you in retirement. It is paid for out of separate fund propped up by the Defence Budget. The country would need to descend into total Anarchy or go totally bankrupt (after all of its assets had been sold off) to not pay out.

Of course there will be those that say this could be possible - of course it could, but how likely is that compared to your pension fund company going belly up, your stocks and shares taking a dive, or your property portfolio spoofing in? I’d suggest that all of the latter are very much more likely!
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