Military Pensions (again)
Pensions
Fox-1 Wrote
Don't just write, go to their constituency surgeries and see your MPs. This is the only way you will have any impact. A queue of servicemen outside their door will have a much greater effect than any number of letters. Don't just send a representative, all of you of all ranks and trades must go and express their deep disquiet.
I left a long time ago, but I'll be going because once again I can see the services getting s**fted.
Good Luck
YS
3) Everybody writes to their MP and makes it known they strongly disapprove of the change in their contract (we do have a contract actually, see what they say if you try to leave) and they will vote against any party that brings it in.
I left a long time ago, but I'll be going because once again I can see the services getting s**fted.
Good Luck
YS
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Does anyone have any links to information relating to these possible changes?
I can find the Green Paper on Pensions from Dec 02, but nothing more recent - except of course the Sunday Times Article
Ta
I can find the Green Paper on Pensions from Dec 02, but nothing more recent - except of course the Sunday Times Article
Ta
Inter Arma Enim Silentius Lex Legis
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Hydraulic Palm Tree
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Everybody has Terms of Service which are laid down in some AP or other, and those already in will have reserved rights..
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Unfortunately this is not absolutely correct and is not recommended as a comfort blanket. AIUI, HMG is considering bringing in BLANKET legislation that will affect the entire populous and not just the Services.
In that event your terms of service will NOT protect you against changes in Pension law or any tax changes associated with it.
My betting is the following will happen:
1.) As a result of the proposed MOD pension changes, no one will get a pension until retirement age of 55. This will only affect those who join after 1 Apr 2005 (or later if they keep dragging their feet) All those in Service before that date will stay on reserved rights to our present scheme.
2.) As a result of the Governments recent green paper, when it finally becomes law in about 2006/2008 I think the Tax free portion of your gratuity will cease. I also strongly suspect that commutation will end in toto. At the very least commutation will be taxable.
My thoughts only and as such not worth banana's I know. But a lot of things can happen under 2 above before it becomes law, so don't get too worked up just yet.
Not going to affect moi though!!
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Everybody has Terms of Service which are laid down in some AP or other, and those already in will have reserved rights..
----------------------------------------------------------------------------------------------------------------
Unfortunately this is not absolutely correct and is not recommended as a comfort blanket. AIUI, HMG is considering bringing in BLANKET legislation that will affect the entire populous and not just the Services.
In that event your terms of service will NOT protect you against changes in Pension law or any tax changes associated with it.
My betting is the following will happen:
1.) As a result of the proposed MOD pension changes, no one will get a pension until retirement age of 55. This will only affect those who join after 1 Apr 2005 (or later if they keep dragging their feet) All those in Service before that date will stay on reserved rights to our present scheme.
2.) As a result of the Governments recent green paper, when it finally becomes law in about 2006/2008 I think the Tax free portion of your gratuity will cease. I also strongly suspect that commutation will end in toto. At the very least commutation will be taxable.
My thoughts only and as such not worth banana's I know. But a lot of things can happen under 2 above before it becomes law, so don't get too worked up just yet.
Not going to affect moi though!!
Last edited by The Gorilla; 26th Jun 2003 at 04:47.
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Pensions
This is a 'bright idea' from the Treasury to save the suggested £4bn from some faceless, clueless beancounter who's never spent more than one night away from Mummy and is just taking the forces for granted.....again.
Well, I can safely say that they'll save more than £4bn off the budget if this comes in, because they won't have to pay me my salary once I PVR! The whole point of staying at least until IPP is the ressurance that if I decide to go afterwards, I'll have an immediate pension and gratuity to ease me into life after the forces. Take that away, and I'm going to have to decide if it's better to stay until I lose the plot (arguably already!!
) or go now and try to develop some seniority and pension from another career.
This is a very short sighted suggestion from an organisation looking for the immediate results and not the implications. IMHO there will be an avalanche of PVRs from all three services and in all branches if this is brought in. Hopefully someone up in town will realise quite how dangerous this could be before it's imposed on us and is able to stop it, rather than waiting for the PVRs to arrive.
Well, I can safely say that they'll save more than £4bn off the budget if this comes in, because they won't have to pay me my salary once I PVR! The whole point of staying at least until IPP is the ressurance that if I decide to go afterwards, I'll have an immediate pension and gratuity to ease me into life after the forces. Take that away, and I'm going to have to decide if it's better to stay until I lose the plot (arguably already!!
) or go now and try to develop some seniority and pension from another career.This is a very short sighted suggestion from an organisation looking for the immediate results and not the implications. IMHO there will be an avalanche of PVRs from all three services and in all branches if this is brought in. Hopefully someone up in town will realise quite how dangerous this could be before it's imposed on us and is able to stop it, rather than waiting for the PVRs to arrive.
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This is all still speculation but I reckon The Gorilla has hit the nail squarely on the thumb. To summarise, for simple folk:-
1. Our present pension is pretty safe, I can't see how they could get away with changing it.
but....
a) Gordon Brown can change the tax laws on a whim and affect our gratuity.
b) If you have to re-engage for any reason, you could get shafted.
I reckon we'll get at least a years notice on any tax change.
1. Our present pension is pretty safe, I can't see how they could get away with changing it.
but....
a) Gordon Brown can change the tax laws on a whim and affect our gratuity.
b) If you have to re-engage for any reason, you could get shafted.
I reckon we'll get at least a years notice on any tax change.
Which is the primary reason I pulled the black-and-yellow earlier this year. Even El Gordo couldn't change pension legislation inside 6 months.....but beyond that, who knows. I simply wasn't prepared take the risk. For despite the best efforts of our top brass (whom I'm sure will do the best they can to secure our best interests), at the end of the day Tony's cronies hold the purse strings....
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I can see things getting interesting a year or two down the line when the government decide to change pension laws giving everyone 12 months notice. The 18 month PVR rule may face a challenge or two by those wishing to leave to take their pension and or tax free gratuity while they still can.
My IPP cannot come quickly enough.
My IPP cannot come quickly enough.
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My hope is that the Labour party will not risk a policy as controversial (and potentially vote losing) as this before the next election, and that nothing will happen before 2007 when I time expire, but I wouldn't bet on it, and I feel for those with longer to do. Particularly those who are re-engaging or due to re-engage soon.
We've just had an e-mail from OC A reminding us that the story resurfaced due to questions posed by the newspaper to the Treasury and refers to a Government Green Paper released last year. Internal comms brief blah blah blah. No decision blah blah blah. Full details announced end of Jul blah blah blah.
