NEM - A Personal View

[PerArdonAdPollo]

Apologies for the long post.

I know a lot has been said on here about the individual segments of the NEM, but just for effect I'd like to show their cumulative effect on an individual. Me. I know some may not have a sympathetic view of the situation. The figures are obviously ‘indicative’, which makes things even more difficult to actually work out.

I’m a TG4 Cpl, 5 years to push, on higher payband level 7 - £34,337.52
My monthly National Insurance contribution ~£200
I live in a 3 bedroom married quarter and pay monthly £80

Value and Reward
First, the impact on my pay. As has been well discussed, a number of trades have dropped from higher payband to supplement 2.

A top level (5) supp 2 Cpl is £32,310. Under NEM, my pay is protected for 3 years. So if I am not promoted, during my last 2 years, I’ll take a pay cut of over £2000 (£4000 cumulative). This obviously has a knock-on effect with my pension.

If I’m lucky enough to be promoted, I will receive a juicy 5% jump taking me to ~£36,000. The nearest pay spine is level 4 at £36,810. I will then stand-still at this rate for 3 years, then drop to my actual rate, level 2 at £34,835 (just £500 more than I’m currently on!). I’ll take a pay cut of almost £2000 (£4000 cumulative) in addition to paying Mess Bills. Again, this has a knock-on effect with my pension. Edit – Possibly incorrect. We may be losing the 5% jump and it seems like there will be no drop. I’d just mark time until the levels caught up with me - cheers for the info Tubby.

(I realise in both cases we should never forecast on earnings, because you haven’t got it until it’s in your bank, but still…)

My national insurance contributions are set to increase by 1.4% to ~£205 (£60 a year loss). Edit - Possibly up to 10%, so more like ~£220 (£75 a year loss) - cheers for the info Busby.

The government have seen fit to award me with a 1% pay rise for the next … well, check that crystal ball!

Accommodation
My amazing* 3 bed Married Quarter has, miraculously, transformed into a palace according to the CAAS. It has jumped from Grade 4 on the old scales, to a Grade C on the new (from A to H). This equates to an eventual jump from £2.64 a day to £8.00 a day. This is managed by jumping in increases each year (compound here); Yr1 +£131. Yr2 +£496. Yr3 +£861. Yr4 +£1226. Yr5 +£1591. Cumulative hit - £4300.

Pension
God knows. There’s no pension calculator at the moment, so I can only speculate about how much of a hammering this is going to take. AFPS15 was bad enough, but with a drop in wages I can see it getting dry humped by Leroy.

Detachments
No R&R. Ever. Because all our dets are 6 months (unless you’re a Super Army Soldier on TCW, then they’re 10 weeks again, for a little while, probably!).

Bear in mind this is NOT a cost-cutting exercise in any way, shape or form. It is ABSOLUTELY to help with Recruitment and Retention.
If it wasn’t so side-splittingly insane, I think I’d cry. Other than professional and personal pride, where am I to draw my motivation and morale from?

Sad thing is, I know I’m not the worst off in all this.

First one to tell me to dry my eyes wins a Mars Bar.

 

[busby1971]

My national insurance contributions are set to increase by 1.4% to ~£205 (£60 a year loss).

I think you'll find a bigger NI hit that, the rate increases by that amount, about a 10% increase in what you pay.

 

[techie_tubby]

You won't take a pay cut if you don't get promoted. WRT your promotion I was told that the 5% on promotion has been scrapped and you will just go up to level 1 regardless of how low the jump in unless the jump is a drop then you will go to the next available level and mark time for 2 years.

 

[PerArdonAdPollo]

You won't take a pay cut if you don't get promoted. WRT your promotion I was told that the 5% on promotion has been scrapped and you will just go up to level 1 regardless of how low the jump in unless the jump is a drop then you will go to the next available level and mark time for 2 years.

Cheers for the response. Do you have any refs for that first bit? Because I've seen and been told otherwise by others (unfortunately not in a forum I can link to!). I'd love to be wrong.

If the 5% is scrapped, I couldn't go to level 1, because that would be a pay cut, so I'd go in at lvl3. I guess there'd be no drop then though as the increments would catch up to me within the 3 year pay protection period.

 

[StickyFingers]

Pay is only protected for 3 years mate, no promotion = possible pay cut in 2019.

 

[PerArdonAdPollo]

Pay is only protected for 3 years mate, no promotion = possible pay cut in 2019.

Yeah, that's how I understood the following;



From Armed Forces Pay Reform Explained p9-10

So it looks like if you're promoted, regardless of where you go in on, you'll just mark time until it catches up with you? No drops?

 

[Dan_Brown]

That is my understanding too, but everyone i speak to seems to be burying their head in the sand saying that will never happen therefore they're not bothered. Awesome attitude.

But it does say at LEAST 3 years, so there is the possibility pay protection could be extended.

The paper says buy the 3 year point individuals will recommenced incremental pay, promoted or left the service.

A colleague has 11 years to serve to LOS 30, is high payband level 7 Sgt and this is higher than the top level NEM, by about £1k. So using them as an example, there is no incremental pay to go up, promotion is very, very, very slow Sgt - FS in my trade and would be very easy to get to LOS 30 without been promoted, nevermind within 3 years! And yes, they have the option of leaving the service.

I have no idea how they have come to the conclusion that 3 years is the golden number.

 

[Ringo]

Well written and realistic situation which affects a huge amount of personnel.

It really is hard to not laugh at the...'This is not a cost cutting' line or the 'This is ultimately to support recruitment & retention'.

On the bright side, without a doubt in the future, the ability to draw a pension at the age of 40, immediately after completing 20 years, will be a thing of the past.
I foresee a time, when pension will only become payable at age 50/60 regardless.

Use your remaining time, to prepare yourself for life post-RAF.

As for 6 month DWRs.......I will never deploy again, for the first time in 16.5 years, I will exercise my right to protect my bad back from any more damage whilst serving away from family and friends.

I only wish there was an Opt-Out button for future SJARs.
I feel guilty that my 1st RO has to waste his time writing one, when in reality, I will sign anything and not give a fcuk about content.

I was a highly committed and career driven SNCO.
Now I'm just a SNCO waiting for my 20 years to come up.

Hell of job NEM

 

[techie_tubby]

Yes - paycuts are possible. If they decide to remove the protection then you will get a paycut.

After what AO A6 has said the ability to give out a pay cut after the 3 year protection never got through MoD legal people. Manning are after more concrete information to make formal announcements as this has been the biggest and most asked question across the entire RAF.

 

[techie_tubby]

There would be hell to pay if they cut the pay of SP due to not being promoted in the timescales. I can't see it happening.

 

[PerArdonAdPollo]

There would be hell to pay if they cut the pay of SP due to not being promoted in the timescales. I can't see it happening.

There was supposed to be hell on with the AIP fiasco and the other TG4 pay mess-up, with talks of legal challenges and the like. Knacker-all happened. There should be uproar over this, but no-one seems to give a toss. Just bending over and asking for a second helping.

 

[MattBombHead]

Yes - paycuts are possible. If they decide to remove the protection then you will get a paycut.

I went to an NEM Brief today... The pay protection will be reviewed in a years time, and likely be extended.

Believe that if you will...

 

[XVR RA RA RA]

I went to an NEM Brief today... The pay protection will be reviewed in a years time, and likely be extended.

Believe that if you will...

You could read into that play on words... "reviewing it later" and "likely" isn't saying "it won't happen"

 

[bigtrev952]

For a Window into the future, check out the civil service employees who you work with, over the past 7 years.

jobs evaluation .... Pay cut ......... Tick

cut in numbers ..... Same work load ...... Tick

pay freeze ......... 7 years and counting

pensions, as part of a modern contract and to improve pensions you should make a personal contribution

That started at 38 pounds per month................. Now over 200 per month.

think it cannot happen ? They have torn up contracts in the biggest civil service departments, cut payments and wages terms and conditions and want you to travel to jobs in your own time and at your expense !

theres a window into the future ! And the actual military staffs are a lot smaller in numbers.

 

[muttywhitedog]

For a Window into the future, check out the civil service employees who you work with, over the past 7 years.

I joined the Civil Service just over a year ago, and the howls of discontent at the ripping up of their T&C deafen me most days. As I never enjoyed those T&C, I had nothing to lose, but remember that these people are not only being shafted, but they don't pay anywhere near £8 a day for their 3 bed accommodation - more like £12-15 a day, they pay to travel to work, they pay a hefty whack into their pension fund, incremental pay is a thing of the past, and they get paid significantly less than the service personnel. The list is endless, and I suspect that NEM is the tip of the iceberg for T&C - the ending of free prescriptions will probably come your way soon, along with a more robust way of stopping you progressing up the increments (ie no increment if no positive prom rec).

If I wasn't supplementing my Civil Service wage with my RAF pension, I'd find it hard to live on what they pay me, and I'm a supervisor. Goodness knows how my staff, my manager, and my peers, some of whom have worked there 15+ years, must survive.

 

[busby1971]

I'm sorry but you cannot compare the lot of a civil servant with that of a Service Person no more than you can compare the self employed to that of a regular worker.

Civil servants will be on relatively short notice periods so if they don't like it they can move on, as they are not leaving in droves I guess that what they have is still enough for the work they do. People choose who they work for and the salary is only one element of attraction and retention, my first ex mob job was working with the civil service and what I experienced made me realise it wasn't for me, so I take the higher risks and rewards of the private sector.

 

[bigtrev952]

Think you missed the points we were making.

this government do not care about terms of service, contracts etc. They will cut and sack anywhere they can. The comparison is not so much between civil service workers and military personnel, but one thing they have in common is terms of service, contracts and pensions.

As my post said window into the future.

The same "MEC" contracts are the current reason junior doctors keep leaving the building.

I am am on a pension and work in a technical area of dft. trust me the people with skills are leaving in droves and as much as they try to recruit they can't.

 

[busby1971]

No I get the point you are making, I just see MWD's as irrelevant.

 

[muttywhitedog]

I'm sorry

Apology accepted.

 

[muttywhitedog]

Think you missed the points we were making.

this government do not care about terms of service, contracts etc. They will cut and sack anywhere they can. The comparison is not so much between civil service workers and military personnel, but one thing they have in common is terms of service, contracts and pensions.

As my post said window into the future.

The same "MEC" contracts are the current reason junior doctors keep leaving the building.

I am am on a pension and work in a technical area of dft. trust me the people with skills are leaving in droves and as much as they try to recruit they can't.

Don't worry mate, he would argue black is white with me. The Govt can directly control the T&C of Civ Servants and military - they cant in the corporate world.