Forces Pension Society Extract

Discussion in 'Armed Forces Redundancy Scheme 2010' started by mckee674, Jan 18, 2011.

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  1. This is an extract from the Forces Pension Society Web Page.

    Has anyone else heard anything the final deal. Is this what is going to be offered. I am a 15 year Sgt Higher Level 6, so according to this I will be leaving with 80K, is this true.

    AFPS 75 (Old Scheme)
    Pension

    Unlike previous redundancy packages where those leaving with at least 12 years’ service were awarded an immediate pension on exit, new rules introduced into AFPS75 by Statutory Instrument 2010 No 832 mean that Officers and Other Ranks will have had to complete at least 18 years’ qualifying service from age 18 , although Officers have the additional qualification option of completing 16 years from age 21 if that occurs sooner.

    Special Capital Payment (SCP)

    Those who qualify for an immediate pension and gratuity payable at the point of their redundancy exit date will receive a SCP under the following terms:

    3 years or more remaining on their current commission/engagement – 9 Months’ Salary.

    2 – 3 years remaining on their current commission/engagement – 6 Months’ Salary.

    1 – 2 years remaining on their current commission/engagement – 3 Months’ Salary.

    Less than 1 year remaining on their current commission/engagement – pro-rata of 3 Months’ salary (e.g. six months remaining = 1.5 Months’ Salary)

    Those who, had they completed their current commission/engagement, would have left the Services with an immediate pension on exit, but their redundancy exit date prevents them qualifying for such an award:

    1.5 Months’ Salary for each year of Redundancy Reckonable Service (service from age 18 – Officers and Other Ranks). If such people have completed sufficient service to qualify for a Resettlement Grant under normal circumstances (Officers - 9 years’ qualifying service from age 21, Other Ranks – 12 years’ qualifying service from age 18) then that is payable also.

    Those who, had they completed their current commission/engagement, would have left the Services without an immediate pension on exit:

    Either

    1.5 Months’ Salary for each year of Redundancy Reckonable Service.

    Or

    1.5 Months’ Salary for each by which redundancy has shortened the commitment for further service – plus 1.5 Months’ Salary

    Whichever is the Lower

    Plus the Resettlement Grant if appropriate.