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New financial retention bonuses

#1
Right, can someone answer this for me please.

The old system will be updated so you can get up to £15000 at your 8 year point.

What I want to know is if I will get anything from this new figure?

Due my 8 year bonus in September this year, had a 5 year bonus, which was £3000 taxable or so from memory. Will I remain on the old system and get the £2000 taxable or so this year or will I get more?

I've got a feeling I'll be screwed over and stay on the old system which I find sickening.

Current system:

Enlist before 01 Apr 04. A taxable CB of £3,000 paid to soldiers with 5 years' reckonable service who have not given 12 months notice to leave the Army. A further taxable bonus of £2,500 is payable to soldiers with 8 years' reckonable service who have not given 12 months notice to leave the Army.


Enlist after 01 Apr 04. A single taxable bonus of £5,500 will be paid at a point between 5 and 7 years, decided upon by the relevant cap badge. Receipt of the bonus will commit the soldier to 2 years of further service.

Infantry Bonus. 1 Apr 07 Infantry soldiers are eligible to receive a £4.5K (taxable) bonus, once they have completed a minimum of 4 years’ reckonable service, for a 2-year Return of Service (RoS).
New system:

044/2008 19 March 2008


REWARDS FOR LOYALTY TO ARMED FORCES

Increased retention bonuses worth up to £15,000 will be announced today, to reward those who stay in the armed forces, alongside a new £20 million pound pilot scheme to offer more affordable home ownership for service personnel and their families.

The Commitment Bonus, which encourages people to extend their service in the Armed Forces, will almost treble for service personnel staying in service for eight years. The bonus can also help more junior personnel achieve their home ownership aspirations.

Secretary of State for Defence, Des Browne said:

“I am determined that the government shows its commitment to our Armed Forces, and to help reinforce this I am announcing a big increase in the maximum commitment bonus of up to £15,000.

“In recognition of the aspiration that many Service personnel have to buy a home we are also announcing the creation of a new pilot scheme to boost home ownership within the Armed Forces.”

All those personnel below Officer level passing the four year service point will have access to the new Commitment Bonus scheme from next year, although the exact start point will be determined by single service manning requirements. The longer they serve the higher the payment will be. The new scheme is designed to reward past service and to encourage further retention in the critical four to eight year period, where we face the greatest retention challenge.

Important steps have already been taken to assist Service personnel with home ownership. Existing schemes, such as the Key Worker Living Programme, have made an important start in promoting affordable housing for Service personnel. The new measures take MoD financial assistance to those wanting to buy houses still further.

In the coming months we will work with commercial providers and public bodies to identify the most suitable approach, which is likely to be based on shared equity or rent to buy arrangements

END

Notes to editors

Both changes will be implemented in 2009/10.

Commitment Bonus

• All those below Officer level, passing the four year service point from next year onwards will have access to a new Commitment Bonus scheme with graduated payments of up to £15K if they serve up to another five years.

• The availability of a lump sum payment nearly three times as large as that currently available should also help these more junior personnel and their families achieve their aspirations, such as getting on the housing ladder.

• Each Commitment Bonus point is accessible to those who have delivered the required service and have not given notice to leave. Personnel who receive a Commitment Bonus will be required to serve for a minimum further period of 12 months from the qualifying date of the payment.

• The individual can take the Commitment Bonus paid in up to two bites – for example at the 4 year point and the 8 year point. If early bites are taken, the overall amount received will be reduced; thus providing the incentive to wait and take the larger sum later.



Years Service Gross amount Second bite claimed at:
5 years 6 years 8 years
4 3750 1250 2500 7500
5 5500 1250 6250
6 7500 5000
8 15000

• Commitment Bonuses are a taxable lump sum and are subject to National Insurance contributions.


Home Ownership

• MOD recognises and understands the aspiration of many Service personnel to buy their own home, in common with the wider population. Surveys confirm that this is a factor which influences retention.

• Existing schemes to help Service personnel include the Long Service Advance of Pay, and access to the Government’s Key Worker Living Programme – recently extended so that Service personnel can qualify for all elements of the scheme, and will be treated as a priority group across England and Wales.

• For this new scheme, MOD will be working with public bodies and commercial providers, to establish how best to tailor it to the particular needs of Service personnel, such as the need for mobility during a Service career.
Reading that it appears as if I'm stuck on the old system. If that's confirmed then screw this, I think my NTT will be going in; I've missed out on enough already and I don't see why I should be busting my ass going on tour every bleeding 8 months or so just to be given nothing in reward.

I already missed out on £10k for my class one course, will miss another £10k if I decide to do FofS course, now they bring this in? If the Government is so concerned about people with my length of service then why am I being screwed over?

Or am I on the new system? I'm sure I speak for many here so advice appreciated. My Pay Master is looking into this for me, but he says it doesn't look good.
 
#2
no u dont get it because it's not implemented til the 2009/2010 yrs!! unlucky and also use the serch function and you'll find a very long-winded debate and explanation on that two month old thread!
 
#5
young_lofty said:
As cheggers said, no joy for the likes of us- I sign for mine next month and I have been advised I'm only getting about 1,800 after tax.
So, am I right in thinking that if you sign for the 8 year money from 2009 onwards you get the larger amount?

I've read the other thread and while I may just be being thick, I can't see a definitive answer. I'm due to sign for mine in February.

Tubs
 
#7
young_lofty said:
I spoke to my clerk at APC, by all accounts the larger bonus will be paid to all those who are eligible on or after August 2009, unfortunately.
That's a bit of a kicker, but seeing as JPA has "lost" the first 18 months of my service, I may have to wait until August 2010 anyway for my 8 years to register so I might get it anyway...

Does anyone else think that announcing that it will be implemented in 2009 and then picking August is a little arbitrary?

Tubs
 
#8
Cleric,

You come across to me as a greedy self centred cunt.

Yeah, it's unfortunate that you miss out, but that is all - unfortunate. You are still better off than many for receiving your 5 and 8 year cash (and before you say anything, it is not sour grapes as i received mine also).

Why don't you fuck off to civy street, i don't remember McDonalds doing retention bonuses.
 
#10
dingerr said:
Cleric,

You come across to me as a greedy self centred cunt.

Yeah, it's unfortunate that you miss out, but that is all - unfortunate. You are still better off than many for receiving your 5 and 8 year cash (and before you say anything, it is not sour grapes as i received mine also).

Why don't you fuck off to civy street, i don't remember McDonalds doing retention bonuses.
LMAO you really think I'd end up in McDonalds? How about you think about what you say before you open your gob? I know for a fact that I can earn more then what I do right now, the only reason I'm still in is because I enjoy the crack and the way of life..

As for me being a self centered cunt, perhaps I am; I wouldn't be mentally sane if I wasn't fucked off for missing out on £10k or so for doing the same work as someone who happened to have joined a couple of years after me.
 

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