New Pension Scheme

Discussion in 'Finance, Property, Law' started by bullshit, Oct 10, 2003.

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  1. Anybody had much time to look into the benefits (if any) of the new pension scheme?

    On first look it appears that more is being given to widows & med dischargees however this has come from other areas.

    Any observations? If so. please share them :)
  2. If I may offer some advice to those of you still serving. If, for any reason at all they are looking at changing your terms and conditions (including your pension), it's a fair bet that it's nothing to do with improving your lot, in fact it's more to do with saving money (their's, not yours). If you are given a choice, stay with your present arrangement and ask for a written assessment of what is on offer (the MOD has professional financial people on the payroll, so it is reasonable to ask this question). When you have an answer, pass it on to a professional for an opinion, then ask the MOD to guarantee the outcome. If they decline - stay with what you have.
  3. Guys, I will try to get some more info for you on this.
  4. The new Pension Scheme is cost neutral, so it will cost the same to run the new scheme asit does the old scheme. One benefit being changed for the better is the death in service benefit - going from 1.5 times your final salary to 4 times your final salary.

    That money has to come from somewhere so figure it out yourselves, also under the new scheme there is no Resettlement Commutation at all.

    I, for one will be sticking with the old scheme :!:
  5. Can anyone actually decipher the terminology that the MOD have come up with, me and a few buddies have had a go but we are flummoxed, for god sakes chaps give us some examples of what we are gonna get when we leave...
  6. Soldier Magazine published a few good pages in Octobers issue outlining the changes to the new scheme which although a little heavy in places gets the main points over.

    The two main differences that will affect most people's decision to remain on the old scheme or transfer to the new will be (setting aside death in service)

    1. A minimum retirement age for an immediate pension of 40 for Officers and Soldiers who have completed a minimum of 18 years service.

    2. The ability to commute a portion of your pension until you are 55 to achieve a larger lump sum will be discontinued as it is now been ruled out by the Inland Revenue.

    Those who are interested in obtaining a pension forecast under the current rules are advised to see their Pay Sgt.
  7. If anyone thought that they were going to get more money on the new pension scheme, must be living on cloud 9....

    Its well known that all these new schemes are just money saving exercises, to save the tressuary a few quid.

    just look at pay 2000...!!!
  8. Tried that, he told me to push off once he's stopped laughing... :roll:
  9. may I ask, when the new scheme comes into effect, and will it be retrospective?

    ie all those not at year12 MUST convert or similar

    having just signed on...will i be forced into new scheme??? or does it just come into effect next year.

    or retain some grandad rights etc????

    help gratefully received.although a tad busy to be truly worried at the moment :D :D
  10. Excellent question, as far as I am aware the scheme comes into it's entirety in 2005, subject to change obviously, everyone who signed on before that retains all their old rights as well as the new ones proposed...