Does anyone understand the new pension scheme?

  • Yes it is perfectly crystal!

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Does anybody understand the new pension scheme? Better still can anyone explain the simple pros and cons in bullet format of each scheme? All the money spent on recent glossy leaflets could probably have been better spent on my gratuity for the amount of simple, factual information that they have failed to provide!!

As I understand it the main points of the new scheme are

A. Better provision for widows pensions

B. Brought Officers pensions into line with soldiers

C. New pension only out-performs the old scheme if you serve beyond 22 years.

D. Preserved pensions and terminal grants now payable at 65 instead of 60

If there is anyone out there who - in a single paragraph - can convince me why I - in the very twighlight of my 22 years - should transfer to the new scheme, I would be interested and most grateful.

N.B. I only speak English and have no formal financial trainiing!
Snarley, as I understand it, the following points are relevant to you :

The new pension scheme begins in April 2007. Anyone leaving before then will be (I am told!) unaffected. This is good news for you, or anyone else leaving before then, as some of the points you missed are:

1. There will be NO gratuity with the new scheme. These were deemed overlly generous by a govt who have not long since awarded themselves a very tidy pension package.....but then they will point out how hard they work(?????) and how few of them there are (thank fook - they do enough damage to our country with the number we currently have!)

2. The pension paid at 22year point will only be 50%. This increases to 75% at 55 and will increase to 100% at 65. The age of 65 will change to 70 when the government change pensionable age to 70 to reduce the amount of pensions they have to pay. This will affect a lot of us. As an estimate, anyone currently under the age of 40 will probably be affected by this change. Something else to take into account when deciding whether to move to the new scheme or not. (To be frank, I think you would have to mad to leave the current scheme!)

3. The new scheme IS pay, not rank, related and is calculated as 1/3 of your salary. Note - This is an improvement. However, since you will only got 50% of your pension after 22years, you will still get much less than on the current system!

4. The new scheme offers better death/injury during service cover and a greater proportion of pension transfer to widows if you after you start to draw your pension.

Those of you in any doubt about this should think in government terms. What was the governments motive for changing the current scheme? Well it clearly wasn't to make it more generous, which leaves only that it was a cost cutting exercise. So much so that the defence select committee have publicly stated their distaste for these changes and said that people are better off on the current pension. Given the choice, I'll be sticking with what I've got now.
And me. Whole thing is a fckiung con. They hope to save billions by it's introduction.

See they're intending getting rid of compensation for those injured in dangerous public service jobs i.e., police Fire Brigade etc.

They know no fckiung bounds does this lot. Yet they're all well paid and recieve generous rises each year.

When you think about it, THEY agree to a dubious WAR, send YOU out there without the right gear and now THEY want to take YOUR pension away from YOU, as THEY know that not many of US are still on this planet by the time WE are 70, but THEY will be asleep in the House of Lords (if its still here that is), when THEY are 70.

I wonder what they'll do with the savings........plumb it into an NHS which they have allowed to deteriorate thorugh extensive expenditure on administrators etc? What about Illegal Immigrants? .......and the legal Aid costs which they incur. Tell you what, I am emigrating at the end of my service. I'm not staying in this country. They have fckiung ruined it and they've shafted everyone, especially us.

They can poke their lefty labour greedy b*stard new pension scheme up their arrses.
Sorry....last comment was a bit out of order.

This country doesn't give a fcuk about it's soldiers.
Letterwritingman - I'm not sure I agree with you. Unfortunately I'm not convinced that will be enough for the Tories to win the next election and even if they did, I very much doubt they would change it for exactly the reasons this government want to change it - coz it will save them money.

Think about it - Oliver Letwin just went on record that he would cut public spending whilst maintaining education and health spending. He clearly stated that the defence budget would be reduced. (I know it is hard to believe it could get any smaller, but there you go!) These do not sound like the words a party with a deep and heart felt concern for our interests.

I'm with Badass. It is blatantly clear to me that people of this country don't give a rat ass about us, how we are treated, equipped, paid, whatever. They can all go to hell in a handcart as far I'm concerned. Time to start looking for a way out of the place so laughingly referred to as the 'United Kingdom'. Any ideas or tips are welcome!
Well thanks for the techical input Dale, we'll all feel a bit better about it now knowing that.