Pensions to be cut

Discussion in 'Officers' started by Adjutant, Nov 23, 2007.

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  1. Rumour has it that given that practically none of us have decided to switch to the new pension scheme, the MoD is now trying to cut the amount of money we will receive if we commute our pensions...

    Apparently a DIN was published - but then rapidly withdrawn given the sensitivities of the subject.

    Does anyone have any more news on this? Is this the next blow to morale?

    Adjt
     
  2. No idea but the they should increase the officers requirement to 22 years in line with soldigers 16s a joke
     
  3. None of us decided to switch because its arrse!
    Essentially, the new scheme takes some of my money and gives it to someone else. Now why would I want that?
     
  4. I'm not talking about a switch from the old pension scheme to the new one - that was a no-brainer. What is being talked about now is that they are going to cut what we were going to receive under AFPS 75 because they haven't made the savings they wanted to.

    Someone out there must know more about this?
     
  5. The cut from 50% commutation to 25% is in Novembers Soldier mag in the letters section.

    It got the Brig on the back foot :)
     
  6. Well I supose it is a bit of a waste of taxyers money but there is a justification for it unlike the civil service that have no moral entilement.
     
  7. This has been hidden under the radar for 2 years or so now. The financial services act of 2004/2005 restricted the amount of money people in any job can commute in their pensions. It was designed so the government can recieve more tax back over the long term. So far it hasn't been set in stone with the forces however if it does it will affect the part of your pension earned after Apr 2006ish.
     
  8. The legislation was designed for srewing more from real pensions.
     
  9. Adj - already discussed here quite a bit, try HERE for starters or search for pension and commute.

    Smudge, AFAIK it IS set in stone as it was a change to the law, not something we can just opt out of.
     
  10. Didn't they estimate a £4Bn saving by introducing the 'new' pension scheme? I also understand that after a period of time those still serving who are under the '75 scheme, will be subjected to a mandatory transfer to the new schem.
     
  11. To save money they should increase the officers requirement in to 22 years 16 is a bit of a joke.
     
  12. As far as i understand, the system cannot force you to change to a new scheme. It happened in the police some time previous and they couldn't force those on the old pension scheme to change some years later. But no doubt this government will change it and deny all knowledge to save a couple of pence at our expense!! :x
     
  13. I thought they had cut off dates for when you could opt into the new scheme and that those who joined after a certain date did not have the choice and are on the AFP 05. (Backdated I believe as well)

    Not really too bothered at the mo I got out in April 2006 full commutation wahoo since I am paying 22% tax on my monthly payments.
     
  14. I would think its unlikly in the near future. The government did not have the balls to deal with the civil service princple pensions scheme which although closed to new members since july will cripple the country for up generations as the current fat leechers can still claim half salery "pension" at 60. The cost of running these unfunded schemes is more than the armed forces per anum. Although they will certainly have to be delt with in the main at some point as it could end up costing over 100 billion per anum. The armed forces pension is only a fraction of the cost of these unfunded schemes. Its also one that most the typical tax payer doe snot respsent paying unlike the civil service that is rewarding a lazy immoral life times of getting fat on taxers handouts.
     
  15. The civil service can go on strike. We won't be able to say or do anything...