Redundancies and Pensions

Discussion in 'Armed Forces Redundancy Scheme 2010' started by Danny_Dravot, Mar 2, 2011.

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  1. Does anybody fully understand the manner in which redundancies affect pensions? Having looked through the ABN and the Forces Pension Society website, i'm none the wiser.

    Those that are very close to pension point are much 'cheaper' to make redundant than those who are already pensionable.For many, it would appear the redundancy compensation is not much more than combined gratuity and resettlement grant but without the monthly annuity, and there is no salary to pay in the interim years between 1 Sep 11 and actual pension point so a double saving.

    Therefore, it makes sense that those who are close to pension are most likely to get the call...
  2. I'm on tour for tranche 1. I'm not pensionable for tranche 2. I become pensionable in time for tranche 3. I guess if I get the envelope it will at the point they can get rid of me for about £50k (redundancy and resettlement) , instead of the £120k (max commutation, lump sum, redundancy) plus about £10k p.a reduced immediate pension.

    If I wasn't so goddamned awesome I'd be worried ;-)
  3. and multiply that delta by a couple of thousand and the figures become quite impressive...let the old and bold and those at promotion ceiling bungle on to natural wastage and you save even more...
  4. ...and see the savings disappear in the first stage of the next procurement c0ck up!
  5. I reckon any future "savings" have already been pre-absorbed by "BureauFighter"-75% over budget FFS. I'm not being smug, but I reckon I'll be going on natural wastage (current contract expires in 2013). I've got 30 years in so I'm pensionable today. Just got to get my arrse to the resettlement officer. The future's bright, the future's civvy.
  6. Am I right in thinking that there will be 4 tranches with the first being Sept 11 then every year (Sept) till 2014, last man out by 2015?

  7. I can't believe that they are repeatedly saying that no one will get sacked whilst serving in Afghanistan, only when they finish their POTL! If you found out you were going to be made redundant after your POTL would you jack on tour?
  8. You won't get made redundant within 6 months of returning from an op tour, or at least that's what the DIN says!
  9. The DIN for the first Tranch which is voluntry will come out on the 04th of April 11 and discharge is September.
    If you are AFPS 75 the maximum you can recieve is 18 months pay if you have 5 years or more to go.

    4 years = 15 months pay
    3 years = 11 "
    2 years = 7 "
    1 year = 3 "

    I have tried the Online redundacy Calculator and have 4.5 years to push but it calculates it at about 9 months pay so I,m none the wiser.

    All Payments are TAX Free and it will not affect any other pension that you have.
  10. What a Cop Out.

    I now understand why the online calculator calculates at 9 months .Until a wee while ago I would have got 15 months pay for redundancy at about £54000, however they have now capped it at 9 months, and that will change to 3 months by 2016. I will now get £32000, a loss of £22000.
    See This DIN:

    The AFPS Reduncancy Booklet has now been superceded by this DIN.As at March 2011
  11. My Bold, you will be told in September if you got it. 6 Months from then will be discharge
  12. Soldier_Why

    Soldier_Why LE Moderator

    That's what I've heard as well, the first discharges (voluntary) will be as at 29 Feb 2012.
  13. Ok the rumour's "I've Heard" are, only those who have serverd over 15 year's & also that Suppliers are a protected trade - so exempt :( , ...but also dont listen to any rumors....

    But quick question does the Resettlement grant go as an addition to the SCP, or is it as written and is for all resettlement courses ?

    Redundancy Details

    Special Capital Payment £70012

    Preserved Pension at 60 £4375
    Terminal Grant at 60 £13125
    Pension or Revision at 65 £6779
    Terminal Grant at 65 £7212
    Resettlement Grant £10038
  14. Anyone, on after work :) ?
  15. Desktop- that spec is almost identical to mine, gutted! If I could stay until june then I'd be looking at 18yr point so would be about 68k fully commuted + monthly. As it is i would be looking at roughly what you said. So they can ram it if ill volunteer!
    As far as i can make out the 'resttlement grant is your 12 yr money, i could be wrong though.