LE Corner - SSC (LE) to IRC (LE) Conversions

Discussion in 'Officers' started by zxninerpilot, Oct 17, 2006.

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  1. This is a final warning to those who haven't yet decided whether or not to opt out of the IRC (LE) conversions, which are happening automatically as at 1 Nov 06 (for AGC SPS branch, other Corps/Arms may already have converted). Watch out brothers! When this first landed in my lap I was quite impressed that I would be converted from SSC to IRC without having to go through the indignity of begging to be selected. Then I looked into it a bit further.....

    If i took the IRC and then decided to get out, I would go on to PVR rates of pension, something that had mysteriously not been included on the policy letter that I saw. These rates are significantly below the compulsory rates, which you get if you just let your SSC lapse. Given that I only intended to serve on a 6 year SSC, the IRC conversion suddenly lost its financial appeal.

    If you want to serve to 50 and beyond then great, do nothing as conversion is automatic. If however you are uncertain, or don't want to convert, the onus is on you to make sure you remain on the SSC by writing to your MCM Div.

    Be careful LE community, don't get caught out in this stealthy pension reducing measure. Do what is right for your circumstance, but don't delay!!

    Anyone else have any views on this thread??
     
  2. I am yet to get an answer on terms of service change and the new pension. I have asked for clarification on legality of making LE's choose which pension scheme to opt for and then changing the terms of service which could have quite an effect on pension payments. To me i think they should offer LE's the choice again now that the terms of service have changed to make the new package more attractive.
    The figures are not huge, but they are different and with the amount of LE's out there who opted to stay on the 75 pension theRe is a large saving to be had by the MoD.
     
  3. Quite, I opted to stay on the 75 scheme as the IRC wasn't in the bag, and I wasn't prepared to gamble away my pension on the unknown. The sceptic in me at the time thought that if I chose 05 then never got IRC'd, I'd be mortified, and I wouldn't have put it past the current regime to have put a moritorium on IRCs for reasons best known to them (money saving).

    So I have now turned down my IRC conversion based on the fact that I have opted for the 75 scheme and there is no way back to change to 05 scheme, which would obviously pay out more.

    I am so p****d off with the whole sorry state of affairs that I am pleased to be leaving at the end of my SSC. I thought I was a lifer, but alas they have knocked the stuffing out of me.

    And MCM Div has still not written me a letter, it has all been done on emails, phone calls and supposition.

    Bitter and twisted? Me? F***in right.
     
  4. Quote "If i took the IRC and then decided to get out, I would go on to PVR rates of pension, something that had mysteriously not been included on the policy letter that I saw. These rates are significantly below the compulsory rates, which you get if you just let your SSC lapse. Given that I only intended to serve on a 6 year SSC, the IRC conversion suddenly lost its financial appeal." Unquote

    Sorry if this sounds a bit naive but at what point, if you are holding an IRC, can you "Retire" your commission without PVR ing? This would affect any decision i may make in accepting (if offered) a Late Entry Commission. Many thanks.
     
  5. Your IRC runs until you are 50, so if you get out before that point then you will be on PVR rates of pension. It is on a sliding scale though so the more years you do on the IRC, the closer it gets to Compulsory Rates of Pension. Reg C takes you to 55.

    The best thing to do is speak to your Admin guys (RAOWO or FSA) who will have the tables with both the rates on. There are many different scenarios, so be careful and try to make the decision based on all the facts. Whichever pension scheme you are on may also cloud the issue somewhat.

    If the pension choice debacle had come after the SSC/IRC debacle then I guess decisions all round would have been easier. I have still had no personal letter from MCM Div laying out guidelines on conversions, though I believe there may be a DIN out there somewhere which was quietly slipped in amongst the torrent of other information. A search on the Def Intranet did not find anything though, and I don't have the time or patience to wade through them all.

    Be careful, there is money to be lost if the wrong option does not fit your personal circumstances.

    If, however, you are not yet commissioned, you will automatically get an IRC if you are WO2 or 1, or an SSC if staffy or below. There appears to be no choice. Staffys can convert to IRC on merit as we all used to before.

    I must caveat all the above by saying it is based largely on supposition and rumour, though I am confident in saying it appears quite accurate. Some Corps have sat their guys down and explained the situation to them.

    Has anyone else heard anything to the contrary?

    :?
     
  6. The DIN number is 2006DIN-02-240.

    The other stealth trap to watch out for is the automatic "consideration" for Reg C that takes place for DE officers upon promotion to Maj. Most are delighted to be informed that they have been "considered" and "selected" to hold a Reg C; except this means that they too are disadvantaged (if on the old pension scheme) should they decide to PVR prior to the age of 55. Newly promoted majors rarely decline the offer of Reg C as it advertises the fact that they may be thinking of leaving (at the 16 yr point for example)!
     
  7. Surely cost saving measures?