RAF Pensions to change

[Deleted member 777]

I heard an interesting rumour from what i would deem a reliable source yesterday. For those that are out soon, make sure that you are drawing your pension by 01 Apr 11, because after that date-the rules will change.

From what I understood, if you are drawing your pension by 01 Apr - nothing will change,but if you start to drawit afterwards, payouts will be lower and maybe you may have to put some more in.

Admitidly, there was a lot of admin blurb, but from a laymans point - it didn't sound good. DT_Xtremez_42:

 

[Drill Bit]

I heard an interesting rumour from what i would deem a reliable source yesterday. For those that are out soon, make sure that you are drawing your pension by 01 Apr 11, because after that date-the rules will change.

From what I understood, if you are drawing your pension by 01 Apr - nothing will change,but if you start to drawit afterwards, payouts will be lower and maybe you may have to put some more in.

Admitidly, there was a lot of admin blurb, but from a laymans point - it didn't sound good. DT_Xtremez_42:

Salt, rumours, taken with, pinch of, should be - rearrange.

 

[Soon To Leave]

Salt, rumours, taken with, pinch of, should be - rearrange.

Don't be too quick to dismiss rumours!

The truth is a pension review is going on. Part of that review will be to consider realigning public sector pensions to those of the private sector in order to reduce costs.

IMHO, I doubt the '75 scheme will be touched as it is more or less carved in stone.

What is more likely is a change to the 05 scheme that could see us having to pay a contribution to receive the benefits we expected.

Those on APFS 75 could be forced to move future contributions into the '05 scheme.

What I'm fairly sure of is that only future years will be affected and there will be no need to jump out before any particular date.

 

[Drill Bit]

Don't be too quick to dismiss rumours!

The truth is a pension review is going on. Part of that review will be to consider realigning public sector pensions to those of the private sector in order to reduce costs.

IMHO, I doubt the '75 scheme will be touched as it is more or less carved in stone.

What is more likely is a change to the 05 scheme that could see us having to pay a contribution to receive the benefits we expected.

Those on APFS 75 could be forced to move future contributions into the '05 scheme.

What I'm fairly sure of is that only future years will be affected and there will be no need to jump out before any particular date.

The point is that by taking a 'rumour with a pinch of salt' is not dismissing the rumour; it merely means to accept it but to maintain a degree of skepticism about its truth.

I don't doubt that there will be significant changes to the AFPS; but I do have doubts as to who it will affect and how it will affect them.

 

[busby1971]

It'll change

It'll change

There is a review of everything going on at the moment, everything in the country is being cut back and all because we must make cuts, free swimming for kids sorry no money, free busses for old folk, sorry no money, you want three aircraft types sorry no money, cops to stop the bad things happening sorry no money.

The government are cutting hard now so that in a few years time they'll be able to give us a smaller amount back and we will all be happy and vote them in again, yipee, labour had planned to do the same.

Anyway back on topic, I hope the head bean counters realise what a retention device the current pension arrangements are and don't chuck out the baby with the bath water. Also x factor takes into account the free pension and would be higher if we had to make a contribution so it would just be an empty transaction for us just now.

However, as pensions outside of the forces become worse and worse our x factor may drop as we will be better off, even under AFPS 05.

Hopefully won't affect me too much as I'm out on the 3rd of April.

 

[Little Tronk]

Any change to pension has to have (according to my WO) a years consultation period, so unless it has been announced as a plan, I would say Apr 11 is a non starter. Soon as it does happen which is highly plausable mind, everyone 22 yrs plus - PVR STAMPEDE!!!

 

[True Blue Jack]

Regulations concerning consultation periods before changes to pension schemes can take effect are enshrined in law. Of course, laws can be amended or repealed...

 

[Bucc Boy]

I've heard of and seen many examples of airmen losing their rights due to re-engaging/re-signing (mainly time promotion rights) but to be honest I have never encountered an occasion when the RAF reneged on a deal with regards to pay, leave or pension.

If you are changing term of contract for any reason such as promotion, re-engagement or medical upgrading.........just be very, very carful you know what you are signing up to.

 

[Realist78]

I've heard of and seen many examples of airmen losing their rights due to re-engaging/re-signing (mainly time promotion rights) but to be honest I have never encountered an occasion when the RAF reneged on a deal with regards to pay, leave or pension.

If you are changing term of contract for any reason such as promotion, re-engagement or medical upgrading.........just be very, very carful you know what you are signing up to.

Wise counsel in these times.

 

[Tin basher]

Pensions both public schemes and certainly private schemes have changed over the years, but I cannot recall a single scheme that has ever been changed for the betterment of the receiver. There could well be pressure applied to switch to the newer apparently brighter schemes, but perhaps it's a good plan to stick with what you have.

 

[Soon To Leave]

Regulations concerning consultation periods before changes to pension schemes can take effect are enshrined in law. Of course, laws can be amended or repealed...

But they've already introduced one change by linking indexation to CPI rather than RPI to reduce payments in the future.

 

[busby1971]

No they haven't

No they haven't

But they've already introduced one change by linking indexation to CPI rather than RPI to reduce payments in the future.

Only where RPI is not specifically mentioned in the terms and conditions. And where other caps are not already in force (many have a 2.5% cap which is well below CPI and RPI).

 

[BillyBunter]

Yeah I was querying this rumour today at work amongst the Senior staff, at present if you are in a contract then ther eis bugger all they can do about it , like was said just watch when re-engaging and recontracting in the near future as nobody gets to read the small print.
So far your pension is taken from a slice of your X factor and you have earned that right, to take it away when you have done time fighting overseas will not go down well and also the agreement and gentlemens if you like is you commit your life to serving your Queen (eg 22 years) then your reward for giving service is a pension, just do not forget about that.

I hoping somebody can enquire in the right places about the legal side of things as its now becoming a very talkative subject and a few twitchy people around (myself included)

 

[Pistonbroke]

I am not too sure on todays pension because I have been out for some time. I have assurances from the pension people that my RAF one is cast in stone so happy days but here in the MOD - Just a warning for you all!

The gov are rushing through a LAW change, (as in Superannuation Law), which will have royal assent in late October that will not only cap compensation packages but limit the amount that your pension can grow ie 1% max. If you want more you pay into it yourself. The pension scheme itself is under review now with the results out early next year but you can bet your a*se that it will be on worse terms than now.

I mention all this because it is likely the way the forces pension will go. In the words of our Union National officer, (and our MOD bosses here), this lot are quote "a very dangerous bunch" unquote.

Don't get me wrong, you guys deserve the best but don't get into being fooled that "they" will look after you. Those days are long gone. Start preparing now, ask the questions and do the actions because it is frightening how quickly that last day in the mod comes and how quickly you are no longer welcome inside the gates.

 

[Realist78]

I am not too sure on todays pension because I have been out for some time. I have assurances from the pension people that my RAF one is cast in stone so happy days but here in the MOD - Just a warning for you all!

The gov are rushing through a LAW change, (as in Superannuation Law), which will have royal assent in late October that will not only cap compensation packages but limit the amount that your pension can grow ie 1% max. If you want more you pay into it yourself. The pension scheme itself is under review now with the results out early next year but you can bet your a*se that it will be on worse terms than now.

I mention all this because it is likely the way the forces pension will go. In the words of our Union National officer, (and our MOD bosses here), this lot are quote "a very dangerous bunch" unquote.

Don't get me wrong, you guys deserve the best but don't get into being fooled that "they" will look after you. Those days are long gone. Start preparing now, ask the questions and do the actions because it is frightening how quickly that last day in the mod comes and how quickly you are no longer welcome inside the gates.

More sage counsel, couldn't agree more.

 

[Tin basher]

Start preparing now, ask the questions and do the actions because it is frightening how quickly that last day in the mob comes and how quickly you are no longer welcome inside the gates.

That pretty much mirrors my experience. You go from respected member of the armed forces to ignorable civvy with a flourish of a shineys biro. Get it sorted whilst inside the organisation because it's very difficult to do so as an outsider.

 

[Belle and Sebastian]

What, no promotion rights

What, no promotion rights

I've heard of and seen many examples of airmen losing their rights due to re-engaging/re-signing (mainly time promotion rights) but to be honest I have never encountered an occasion when the RAF reneged on a deal with regards to pay, leave or pension.

If you are changing term of contract for any reason such as promotion, re-engagement or medical upgrading.........just be very, very carful you know what you are signing up to.

I was given my letter for a fitter's cse during my arrival chat a day after arriving at LBH. The Chf Clk told me that I was not allowed back to the UK/Halton because the rules said that I had to stay in BFG for a year and a day and would get time/seniority because I was on time promotion. I told Chf Clk that since I joined in Aug 86, then time promotion wasn't available so I asked to go back to blighty immediately/or for the next course. I was told to wind me neck in and wait for the rules to change which would allow me back 'in good time'. It took over a year to get my course so I lost 12 month's J/T pay and it took 6 years to get cpl - times/promotion were hard in the mid-90s.

 

[gngr29]

Dib 54

Dib 54

There's a DIB (Defence Instructional Brief) out on this subject. I think it's DIB 054 - you'll be able to find it on the Defence Intranet. It'll tell you what the pension nazis are up to. It doesn't go into any detail other than stating that anything you've put into the pot so far is safe............wait out. The DIB wasn't distributed at my little Unit (it is supposed to get the widest possible distribution..............) and asked for inputs from interested parties to be with the pension nazis by 30 Jul 10. As I only found it today............

The findings will be put out on the street in October.

I'll repost if I've got any of this wrong.

 

[Talk Wrench]

Just a little snippet that I have stumbled across which could be of interest.

http://www.efinancialnews.com/story/2010-06-14/uk-prepares-for-public-sector-pension-reform

From the article,

"The armed forces run several pension schemes, which are unfunded and work in the same way as other public sector schemes. One difference, however, is that the Queen has direct responsibility for the original scheme, set up in 1975, meaning its rules cannot be altered or cancelled by parliament.
A new scheme introduced in 2005 does not have this protection.

The schemes do not ask members to contribute to their pensions, so the employers have to pay an annual 35.3% towards officers’ pensions and 19.4% towards those of all other ranks. Both schemes allow members who leave the forces as early as age 55 to receive full benefits."



Interesting to say the least.




TW

 

[BillyBunter]

Just a little snippet that I have stumbled across which could be of interest.

http://www.efinancialnews.com/story/2010-06-14/uk-prepares-for-public-sector-pension-reform

From the article,

"The armed forces run several pension schemes, which are unfunded and work in the same way as other public sector schemes. One difference, however, is that the Queen has direct responsibility for the original scheme, set up in 1975, meaning its rules cannot be altered or cancelled by parliament.
A new scheme introduced in 2005 does not have this protection.

The schemes do not ask members to contribute to their pensions, so the employers have to pay an annual 35.3% towards officers’ pensions and 19.4% towards those of all other ranks. Both schemes allow members who leave the forces as early as age 55 to receive full benefits."



Interesting to say the least.




TW

TW thanks verymuch for that information , that may come in very usefull for so many very very soon.