Early Release

Discussion in 'Army Pay, Claims & JPA' started by Liney_Lunatic, Sep 14, 2010.

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  1. I know that the Army has been told to "lose" approx 17,500 soldiers across the board, currently the duty rumour circulated by rumour control is suggesting that they are looking at doing what happened in the 90's which is to offer early release with full pension for those that have served between 14 & 18 years. Only reason I am asking is that a few colleagues of mine are in that bracket and also downgraded, with the changes to the CLM courses ( no more LMC) it looks like they will not be able to progress further up the ladder and they have been hearing that those that are downgraded are among those that are going to be "targeted" to make way for those that are fully fit. I am asking any of those that might be in the know if they have heard similar rumblings on the grapevine.
  2. It wasn't an "early release with full pension" in the early 90s because the redundancy programme in the late 70s cost the Ministry a huge amount of money (I lost two bosses in very quick succession due to the popularity of that programme - I know, damned careless of me!).

    The box containing my brown envelopes is in the loft and I am away at the moment. If I remember, I will try and dig them out!

  3. If only this was true. Sign me up for that !!
  4. This has been done elsewhere but I really do not think that any generous offers are on the table.

    Why pay people to go/enhance pensions when you can use the 12 & 15 year MCPs for soldiers and restrict conversion of commissions (SSC to IRC and IRC to Reg C) for officers?
  5. Sorry, my bad on phraseology, Voluntary Redundancy is what it was called, i know that they did it in the very late 80's/early 90's as my dad and uncle took them up on the offer, i wasnt aware that they did it in the 70's aswell. Bone question but what is MCP? I know on the initial outset it would cost a shed load if they did a voluntary redundancy programme again, however would in the "long run" of the Governments spending cuts, would it not save them the money that they want to save?
  6. Manning Control Points, recently re-introduced. See ABN 21/10.
  7. The cost of manpower is the largest single element in the Defence budget. If we look at the costs of one soldier:

    * The Army pays him on a monthly basis.
    * The Army pays National Insurance to employ him.
    * The Army pays for the infrastructure to support him (expenses, food, water, dental, medical, welfare, admin etc).
    * The Army pays for equipment (clothing, weapon, ammo, transport etc).
    * The Army pays for training (short, medium and long term).
    * The Army pays for his pension (in theory, at least).

    Now, it was always calculated that the real cost of a soldier to the Army was twice his salary. In addition, the Ministry has to look ahead so it always works on the estimate that an average soldier will serve for another 5 years (not quite true, but bear with me).

    So, if I make redundant 100 trained soldiers earning £20k at, say, the 5 year point, I can calculate that the Ministry will save 100*£20k*2= £4m over each of the next 5 years which equals £20m. It will be more than that because some of those soldiers would have promoted and/or moved into married quarters but, for now, £4m/pa savings are a good start (and that saving can be "taken" today).

    Now, look at the chain of command. If the Ministry now has 100 fewer soldiers (or two Company's worth...), it won't need the hierarchy. And that makes the financiers wet their pants because the senior ranks and the officers are hugely more expensive!

    Longer term, the Ministry can save on equipment and infrastructure but I'll stop there because I don't want to give them ideas!!!!

    On the downside, as redundancy looms, anyone thinking of quitting will hang on in the hope that it will be "worth their while" and that makes the redundancy programme larger than it might otherwise have been.

    So, for the 100 soldiers concerned, some of them will have been thinking of quitting anyway and will be grateful for any crumbs falling from the table. Others will receive a nasty shock and will have to be persuaded to quit. Therefore, in order to keep everyone reasonably happy, the redundancy terms could be one month's salary for each year served (the Treasury will have a fit...) and the normal resettlement package. So, a five year Tom might receive 5*£20k/12 = £8k tax free.

    In broad terms, that would cost the Ministry 100*£8k = £800k to buy out the 100 soldiers NOW and save £4m/pa for each of the next five years.

    What a wonderful financial saving! Gongs all round and home in time for tea!


    (This is in no way a draft redundancy plan for the Ministry. It is my copyright and I will sue if anyone uses it...). But I am available to advise and my fees will reflect my experience in this area...!
  8. All will be made clear when the SDR is released, MCP = Manning Control Point. Just do a quick scan of this part of the forum and you will find a fair few discussions on this topic.
  9. cheers for the info guys
  10. vauxhall

    vauxhall Sponsor

    Take a look too at the revised pension arrangements for AFPS 75 members - it should be on the MOD website under armed forces pensions. During the OTT the MOD did flag up that the rules would changing and I believe that this was finally done earlier this year.
  11. Hi everyone, this is my first posting on here.
    I have been contacted by veterans uk who filled out my forms for early payment of my pension due to ill health. I am 55 yrs of age. After my forms were received by Glasgow. They sent a form to my GP who stated that due to my illness I will not be able to do any kind of employment again. The forms were sent back to Glasgow for them to reach a decision.
    Could anyone tell me what the usual time frame before I get notification when they will pay into my bank.
    I spoke to Glasgow after 4 weeks and they tell me they have received the medical questioner from my GP and it is ready to go to the MOD.
    Thank you in advance
    Keith . I was in afps 75 pension
  12. Took a couple of months with me.