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  1. Looming Pension Changes... time to plan your exit from military

    So you should all know that the the treasury wanted the MOD to introduce a change to the redundancy terms inApril 2013; DIN was published last year. In short, the MAXIMUM payout will be just 3 measly month's pay. However, CDS successfully lobbied this change to be delayed until the current round of redundancies are finished. But be in no doubt, any future redundancies - for example in 2015 when we exit Afghanistan - will be a measly 3 month's pay.

    In addition, the MOD is working on a new employment model for the military. Lots of changes have been considered; for example, changes to the officer system modelled on the US system where if you don't get promted in 7 years, you are out. Gets rid of the deadwood you might argue, but if you think officers are promotion focussed now (with a system where Sqn Ldr and above can sit happy until 55) then think about how that would change things. These and lots of other changes are being discussed daily by the NEM team.

    But even worse, the leak published in the Telegraph below shows how they are planning to change the pension. In short, no longer an immediate Pension point at 18 years for officers (service to 21 does not count) or 22 years for Airmen. Now they want to extend that by another FIVE YEARS.

    It doesn't affect me, I have PVRd and am out in a couple of months. But those of you who are basing their financial future on the pension may well wish to adjust their plans. The MOD have already shown how callous they bare in making people from all three Services redundant just before their pension point, saving the Public purse millions but denying hundreds of thousands of pounds to each individual affected.

    Imagine now if you have to end up doing 27 years instead of 22 to get your immediate pension. For those at their 10-12 year point... is it worth staying now? Another 15 years of s***e on the promise of a pension, when the goalposts may change again?

    The military have had a good run for their money where benefits and pensions are concerned. But I would recommend you consider your future finances now. You cannot rely on the military pension nay longer.

    http://www.telegraph.co.uk/news/ukne...r-pension.html

  2. #2
    Wrote a lovely long reply only for tinternet to die on me and lose the post - suffice to say, as usual the papers are not factually correct re pensions.

    My advice is to attend one of the current "New Pension Scheme" briefs and get the correct info. Admitedly the new scheme is not as good as the previous ones but the brief will alay some of the rumours being put about. The 5 years extra is in addition to the current 18 not 22 and that hasn't been agreed yet - nothing has. Leaving at age 40 to get immediate pension will change too but could be as low as age 43.

    One thing we did get to do re this new pension was to fill in an on line questionaire and put forward our views to ensure we get what we deem the best that's available - no other public sector workers got that privelage.

    As for redundancy - I doubt anyone thinks Tranche 2 was the final redundancy scheme ever - so yes, payout a lot less for the next round post 2015!
    Last edited by Billy Whizz; 19-06-2012 at 13:03.
    Never give up bein a rigger to work behind a desk!!!!

  3. #3
    Join Date
    May 2006
    Location
    Pottering About
    Posts
    4,934
    We're all doomed! Personally I am not worried about future redundancies when we return home from Afghanistan because I think we will be balls deep in Syria before then. 3 months pay on redundancy is not a huge amount, I agree, but the statutory minimum is just 2 months. In that context, the current payout of up to 9 months salary on redundancy, and previous payouts of up to 18 months salary could perhaps have been viewed as a little generous (not that I am complaining). And 6 or 12 months paid service to sort your life out after being given notice of redundancy takes the sting out of the tail a little bit, don't you think? According to the MOD's own business plan (there's a thread on here about it), the New Employment Model will not see the light of day until 2021 if it comes in on time. Most people attesting today will be out of the mob before it becomes a reality, if indeed it ever does. Pensions are worth keeping a close eye on though but it must be remembered that those of us currently serving have our accrued pension rights up to 31 Mar 15 protected so the effect of the changes will be lessened accordingly. I suspect many in civvy street would be quite envious of a pension payable after 18 or 22 years service and it doesn't surprise me that it is under discussion. On the other hand, AMP's most recent bulletin appeared to state that the new pension scheme will continue to be based on final salaries, rather than the career average recommended by the Hutton Report, which I found quite interesting. In short, it is always a good idea to be prepared for life outside the mob (keeping your CV updated, looking at the opportunities available, etc.) but I recommend people wait to find out the facts rather than jumping ship based on a handful of newspaper articles.

  4. #4
    Quote Originally Posted by True Blue Jack View Post
    On the other hand, AMP's most recent bulletin appeared to state that the new pension scheme will continue to be based on final salaries, rather than the career average recommended by the Hutton Report, which I found quite interesting.
    AMP needs to chat to the tri-service pensions team as that's not what they are briefing!
    Never give up bein a rigger to work behind a desk!!!!

  5. My understanding is that the extension to your immediate pension is for people on afps 05, as you could claim the pension at your 18 year point. As for further redundancy I wouldn't be surprised however the new terms are for people on the new pension post 2015 as you are entitled to financial compensation for loss of earnings from your immediate pension!

  6. #6
    Join Date
    Jan 2011
    Location
    Here and there
    Posts
    52
    I agree the pension subject sucks.

    Here is my interpretation for someone on AFPS 75 completing 22 yrs.

    If Airman A joined in 1997 at the age of 18 he will get an accrued pension entitlement upto 2015 which is safe. From that date he will go onto the new pension scheme where the final pension will be based on his career average pay from 2015 to the day he leaves at 22 yrs (2019) at the age of 40.

    On leaving he will get the IP and termination bonus that he is entitled to under the old AFPS 75 (I'm ignoring commutation in this example). So this means he will only be getting 18/22 of his pension.

    The remainder of his pension is now under the AFPS 15 which will be payable under the new rules; which as far as I am aware is still being discussed and no final decision has been made.

    One thing that strikes me is how unfair the new pension could be between services and trades. If the pension is based on a career average, then those of us how are able to climb the career ladder quickly will benefit immensely.

    I know that in some trades - in all three services, promotion and career progression is naturally faster than the majority. This would mean that some personel; through no fault of the their own will receive a lower averaged pension come retirement.

    And before anyone chirps in and says it's tough luck that's life, I would agree IF this were civvy street and all these people were working for different organisations. However, this is not civvy street, although there are three seperate services, we all operate off one common pension scheme, pay banding etc... This means it would be extremely unfair to have a pension system where some parts of the military benefit more the others.
    BT

    NNNN


  7. #7
    Join Date
    Mar 2006
    Location
    Lincoln
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    5,739
    Quote Originally Posted by Billy Whizz View Post
    AMP needs to chat to the tri-service pensions team as that's not what they are briefing!
    Left hand not knowing what the right hand is doing? That's a first!

  8. Better than your aberage civvy pension? No Shi* but anyone can apply to join. I joined under a system that I based it on they moved the goalposts, how does your average civvy react to that? they strike so stop comparing our scheme to theirs FFS.

    Yes average based discriminates against anyone who doesn't join the mongoes as they shoot up through the ranks, It would be funny however if they still had to leave at age 40 and the new scheme demanded they serve at least 25 years to age 43.

    I am really past caring as I will take my 20/37ths of a pension not based on 22nds and find something better to do with my time and until that point the forces can expect me to not volunteer or do anything above and beyond my job thanks to the treatment of us all over the past 18 months.

  9. #9
    Quote Originally Posted by Max View Post
    Better than your aberage civvy pension? No Shi* but anyone can apply to join. I joined under a system that I based it on they moved the goalposts, how does your average civvy react to that? they strike so stop comparing our scheme to theirs FFS.

    Yes average based discriminates against anyone who doesn't join the mongoes as they shoot up through the ranks, It would be funny however if they still had to leave at age 40 and the new scheme demanded they serve at least 25 years to age 43.

    I am really past caring as I will take my 20/37ths of a pension not based on 22nds and find something better to do with my time and until that point the forces can expect me to not volunteer or do anything above and beyond my job thanks to the treatment of us all over the past 18 months.
    I think it's fair to compare to other pensions. My wife is an accountant and was amazed at the old scheme and not at all surprised that a new system was being put into place. Fact is the country can't afford to honour promises made so cuts have to take place. Not meaning to sound apathetic to it all as I'm gutted my pension won't be what I expected. But thems are the breaks and I will still have a very good pension and leave at an age where I can start a whole new career. Glad we can't/don't strike as most of the demonstrations in recent times by teachers and doctors have been an embarrassment IMO.
    I SAY I SAY I SAY BOY, TEAMWORK MAKES THE DREAMWORK!

  10. Quote Originally Posted by FOGHORN LEGHORN View Post
    I think it's fair to compare to other pensions. My wife is an accountant and was amazed at the old scheme and not at all surprised that a new system was being put into place. Fact is the country can't afford to honour promises made so cuts have to take place. Not meaning to sound apathetic to it all as I'm gutted my pension won't be what I expected. But thems are the breaks and I will still have a very good pension and leave at an age where I can start a whole new career. Glad we can't/don't strike as most of the demonstrations in recent times by teachers and doctors have been an embarrassment IMO.
    Yes it was very generous but it's also been in place for years, I know the country is skint as reflected in my effective wage drop over the past few years and those coming up, My point is that they change the goalposts and we have no comeback apart from leaving which is a cheap way of getting shot of us.

    I don't expect it to change but I merely said that there should be no expectation for anyone serving to put much back into the forces.


    On top of that there has been no mention of it being made up to us when the economy picks up or will be merely be the poor relations of the UK?

 

 
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