I have received today a notice, from the mod pension office in Crawley w sussex, to the effect that my army pension is to be reduced by approx £88 a month, due to what it calls 'NI modification rules', anybody else heard of this or got such a letter yet?.
National Insurance retirement benefit-abatement from service retired pay or service
10. a. An officer or soldier in receipt of service retired pay or pension shall,
on reaching State pension age have his service retired pay or pension
abated by the amount of the graduated retirement benefit, if it exceeds
£0.10 a week, for which he is eligible under the National Insurance Act
1965 for would be so eligible if he had retired from regular employment),
in respect of graduated contributions paid or treated by virtue
of section 58 of the National Insurance Act 1965, as having been paid
by him during any period of his service reckonable for retired pay or
pension when not contracted out of the Graduated Pension Scheme.
The rate of abatement for awards at annual rates shall be £1.30 a year
for each £0.025 a week of graduated retirement benefit in respect of
which abatement is applied.
b. In addition, except as provided in Articles 12 and 14, an officer commissioned
or recommissioned, or a soldier enlisting or re-enlisting
into the Army after 30 June 1949, shall, when he reaches State pension
age have his service retired pay or service pension abated at the
rate of £0.01667 a week (or £0.8708 a year for awards at annual rates)
for each complete year of reckonable service prior to April 1980.
c. An officer who transfers from either a short service or short career commission
to pensionable terms, shall when he reaches State pension age
have his service retired pay abated by any notional guaranteed minimumpension in respect of his contracted-in service whilst a short service or a
short career officer before 6 April 1997.
11. For the purpose of Article 10b:
a. a short service officer who, before 1st July 1949, completed the period
of service on the Active List which he had undertaken but who, after
that date, rejoined the Active List during the reserve service which
formed part of his commission;
b. a soldier who rejoined after 30th June 1949 but whose colour service was
broken only by service on the reserve portion of a regular engagement.
c. an officer or soldier commissioned or re-enlisted after 30th June 1949
but who gave continuous full pay service from before that date; shall
be exempt from the provisions of the article.
12. A retired officer or pensioned soldier who is exempt from the provisions of
Article 10b shall continue to be so exempt notwithstanding that he may
give further service reckoning for a revised or re-assessed award.
There you go clear as mud!! (extract from the pensions warrant).