Mobilisation, reservist award and pension

Discussion in 'Army Reserve' started by morepressupsplease, Oct 25, 2012.

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  1. So...

    I am mobilising soon. I will be claiming the Reservist Award as my civilian pay is greater than my Army pay. I have to decide between joining RFPS or staying in my company pension scheme.

    A large part of my decision rests on whether the Reservist Award counts towards pensionable pay for the purposes of RFPS. Does anybody know?

    Many thanks

    Pressups
     
  2. What does your company pension look like?

    Can you outline the benefit structure, how much you pay, your employer pays, etc etc
     
  3. You sure its worth dropping out of company scheme for a year? For me its a no brainer I'm staying in my current scheme and getting Army to do employer contributions, mind you when I get back from H18 , only have just over 2 1/2 years to do for retirement ! Its a 30 year service scheme !
     
  4. What is your work pension like? if your on something like a final salary or final balance scheme and contributing around 6% and your employer contributes 18% Id stay with your work. Get a summary of your pension with a year contribution holiday compared to continually paying in for the full term. Then get a forcast from the G1 cell at Chilwell of a pension forecast contributing fulltime into the RFPS. Then compare the difference, are you gonna do another tour or FTRS etc..thats another factor to consider.
     
  5. Thanks for all the advice.

    My defined contribution company pension pays me 18% of my basic salary and I pay 2%.

    RFPS, if I've interpreted the leaflet correctly, pays a final salary pension for my year's mobilisation of 1/70 of my Army salary.

    If RFPS does not take into account the Reservist Award, I am better off staying in my company pension (notwithstanding market risk etc). Here is the bit I need to know about: I am employed on an expat contract which includes various allowances and benefits including accommodation. If the Reservist Award includes reimbursement for the cost of my accommodation and other benefits, and this is pensionable, then it makes sense for me to join RFPS. I haven't found the answer anywhere and it would be nice to know before turning up at Chilwell next month so I can make an informed choice.

    I also intend to do future tours but probably not FTRS.
     
  6. I would say hardship award is pensionable as it is paid daily as part of your salary, other bonuses are not such as bounty, callout gratuity, loa etc are not. But you would have to ask chilwell. earning 30k in 12 months will give you a pension payable @ 68yrs around 22 quid a month, its hardly worth it. As when you draw the pension at 68 the pension will be worked out on your final salary ie 30k. which compared to what the avarage wage will be when you are 68 could be a lot higher than 30k, if you get my drift
     
  7. Yes I do get it, thanks. Not sure if the fact Reservist Award is paid as part of daily salary is significant as LOA and LSA are as well. As a civvy I earn more then the normal Army rate for a Major so it's well over £30k.

    Not sure it can be referred to as a "Hardship Award" as I will be nowhere near hardship!

    NB RFPS Preserved Pension is payable at 65 and is index linked so that £22 will be uprated for inflation.