Redundancy query

[ivrytwr3]

A bit more clearer on entitlements:

http://www.mod.uk/NR/rdonlyres/19129F71-2193-4964-ADF2-27A77795C1E4/0/JSP764Amdt4.pdf

I have a question!

If an airman completes 22 yrs on 75 pension he gets:

a. Immediate Pension
b. Lump Sum

With regards to the document, the same airman if made redundant at 18 yrs he gets:

a. IP
b. Redundancy payment (9 months pay tax free)

However at Chapter 3 of the document, example 10:

EXAMPLE 10 – Calculation of Pension at Pro Rata Rates (Other
Ranks)

​

• Petty Officer with 20 years’ qualifying service from age 18
• Includes 20 years’ reckonable service for pension from age 18
• He will receive 20/22nd of the 22-year rate for his rank
If the 22-year Standard Rate of Service Pension for Other Ranks is £9,094 pa, then
his pension will be £9,094 x 20/22 = £​

​

8,258.18 pa.​

He would also receive a Terminal Grant of three times his annual rate of pension
= £8,258.18 x 3 = £​

​

24,774.54​

15 Statutory Instrument 2010 No. 832
​

​

​

​

Does this mean you ALSO get the lump sum (terminal grant) as well as IP and redundancy payment?​

​

 

[MrMasher]

A bit more clearer on entitlements:

http://www.mod.uk/NR/rdonlyres/19129F71-2193-4964-ADF2-27A77795C1E4/0/JSP764Amdt4.pdf

I have a question!

If an airman completes 22 yrs on 75 pension he gets:

a. Immediate Pension
b. Lump Sum

With regards to the document, the same airman if made redundant at 18 yrs he gets:

a. IP
b. Redundancy payment (9 months pay tax free)

However at Chapter 3 of the document, example 10:

Does this mean you ALSO get the lump sum (terminal grant) as well as IP and redundancy payment?​

Yes.........

 

[Dan_Brown]

Yes.........

Wasn't aware of the lump sum being payable too - many thanks Mr Masher!

 

[Dan_Brown]

OK, done some rough figures:

Again same scenario (18 years, 75 pension, Airman), but using high pay band and top level - £33182:

A. Redundancy payment of 9 months salary tax free = £24886.

B. Pension if reached 22yr point is £9587 - so, 9587 x 18 / 22 = £7843

C. 3 x Terminal Grant of three times his annual rate of pension - 7843 x 3 = £23529

So airman would leave with approx £48415 lump sum and an IP of £7843 per year.

Is this correct?

 

[BillyBunter]

also depends if you wish to commute most of your pension, you can calculate 18/22 of the figure in the pension calculator. Gives you a rough idea. I'm about 55k if I commute the lot but leaves me with snot 7300 per year pension ( I done 21 years).

 

[justintime129]

also depends if you wish to commute most of your pension, you can calculate 18/22 of the figure in the pension calculator. Gives you a rough idea. I'm about 55k if I commute the lot but leaves me with snot 7300 per year pension ( I done 21 years).

Just as an afterthought give it a long hard thought whether you need to commute your pension and keep the same pension every month until you're 55 or do without the commutation and have a yearly increase. Personally I took the commutation and in two months time my pension more than doubles, something I'm looking forward to. Ive managed with my monthly pension cos I've not been out of work.

 

[busby1971]

Just as an afterthought give it a long hard thought whether you need to commute your pension and keep the same pension every month until you're 55 or do without the commutation and have a yearly increase. Personally I took the commutation and in two months time my pension more than doubles, something I'm looking forward to. Ive managed with my monthly pension cos I've not been out of work.

If you commute or not your pension stays the same until you're 55 it's just lower if you commute.

Have a good birthday.

 

[justintime129]

If you commute or not your pension stays the same until you're 55 it's just lower if you commute.

Have a good birthday.

I thought it went up every year

 

[clungemobile]

I thought it went up every year

You must KNOW if it has done surely DT_Xtremez_35:

 

[Soon To Leave]

Indexation is applied to the pension each year but you don't receive those increases until age 55.

 

[BillyBunter]

Nah considering if it did go up every year it has now been linked to CPI now I think rather than RPI (or other way around) the rises cannot be much surely. Its only when you hit 55 does it go up soi thought :/ got me thinking now lol

 

[justintime129]

You must KNOW if it has done surely DT_Xtremez_35:

Read my earlier message my pension has been frozen because I commuted a lump sum, I was under the impression your pension went up every year if you didn't commute the lump sum

 

[BillyBunter]

Well ill take a look into that thanks Justintime, thats something I was not aware off. Been figering out if its worth commuting the lot as lets face it pensions are not going to be round much longer. Better to cash in now I thought as all the talk of these radical changes I dont want to really loose out.

 

[justintime129]

Well ill take a look into that thanks Justintime, thats something I was not aware off. Been figering out if its worth commuting the lot as lets face it pensions are not going to be round much longer. Better to cash in now I thought as all the talk of these radical changes I dont want to really loose out.

It's all down to whether you want/need that extra lump sum.

 

[glassestashthunderflash]

To the best of my knowledge your pension only goes up at 55 to bring it in line with inflation so its value is essentially the same as it was when you left.

If you commute you take a higher lump sum as a trade for an annual payment (split per month). I believe this payment remains static (until 55) regardless of how much you commute.

 

[Realist78]

With any pension enquiries guys, use the pensions calculator, it's even free! Obviously there will be anomalies where you simply go and pester the Chf Clk but the basics are simple.DT_Xtremez_30:

 

[justintime129]

To the best of my knowledge your pension only goes up at 55 to bring it in line with inflation so its value is essentially the same as it was when you left.

If you commute you take a higher lump sum as a trade for an annual payment (split per month). I believe this payment remains static (until 55) regardless of how much you commute.

Shows you how much I listened to pmc when I took redundancy all those years. I actually feel better knowing if I'd have nor commuted some of my pension and just took the ip that it wouldn't have gone up. I think you lot still in have more instance and better information available to you.

 

[harry the df]

I have seen this question posted but not seen a reply so apologies if it is already out there.

I know that you need to do 2 years in rank to get the pension for that rank, but if you are made redundant before the 2 years do you get the lower pension. For example if a sgt is only 1 year in rank when made redundant does he get cpl pension or sgt?

Thanks for any answers

 

[busby1971]

Pension Help Desk

Pension Help Desk

Some other high and mighty individuals on here suggest you ring the JPAC help desk and get your answer from them.

Boy would the goat be a boring place, no contradiction, no complete tosh and none of the even rarer true gen being passed on by other goaters.

Off topic I know, but I also know that the pension gets paid on a pro rata basis once you go over a certain point in the two year process.

Added this later, found from a link on the RAFCOM website on the internet.

D.10 Rank additions: other ranks
(1) This rule applies if at any time in the 5 year period immediately preceding discharge—

(a) the member holds a rank higher than the member’s pension rank for a period of at least one year or periods amounting in aggregate to at least one year; or

(b) the member holds a paid acting rank higher than the member’s pension rank for a period of at least one year or periods amounting in aggregate to at least one year.

(2) Subject to paragraph (4), the amount of pension payable under rule D.1 is increased by the relevant rank addition.

(3) In a case where paragraph (1) applies, the rank addition is calculated as follows—

(½ x (A-B) x number of days spent in the higher rank (up to a maximum of 2 years))/365

where— “A” is the amount of pension specified in the relevant pension code for a person with the total number of years’ reckonable service the member has had the member’s pension rank been the higher rank, or where there are more than one, the lower of those ranks;

“B” is the amount of pension specified in the relevant pension code for a person of the member’s pension rank and total number of years’ reckonable service.

I also know that if you're on the nasty 05 pension scheme it doesn't matter a jot as that is paid out on what you have been paid over your last year.

Now you've got a nugget of news now go and ring the JPAC and get the right answer.

 

[harry the df]

Some other high and mighty individuals on here suggest you ring the JPAC help desk and get your answer from them.

Boy would the goat be a boring place, no contradiction, no complete tosh and none of the even rarer true gen being passed on by other goaters.

Off topic I know, but I also know that the pension gets paid on a pro rata basis once you go over a certain point in the two year process.

Added this later, found from a link on the RAFCOM website on the internet.

D.10 Rank additions: other ranks
(1) This rule applies if at any time in the 5 year period immediately preceding discharge—

(a) the member holds a rank higher than the member’s pension rank for a period of at least one year or periods amounting in aggregate to at least one year; or

(b) the member holds a paid acting rank higher than the member’s pension rank for a period of at least one year or periods amounting in aggregate to at least one year.

(2) Subject to paragraph (4), the amount of pension payable under rule D.1 is increased by the relevant rank addition.

(3) In a case where paragraph (1) applies, the rank addition is calculated as follows—

(½ x (A-B) x number of days spent in the higher rank (up to a maximum of 2 years))/365

where— “A” is the amount of pension specified in the relevant pension code for a person with the total number of years’ reckonable service the member has had the member’s pension rank been the higher rank, or where there are more than one, the lower of those ranks;

“B” is the amount of pension specified in the relevant pension code for a person of the member’s pension rank and total number of years’ reckonable service.

I also know that if you're on the nasty 05 pension scheme it doesn't matter a jot as that is paid out on what you have been paid over your last year.

Now you've got a nugget of news now go and ring the JPAC and get the right answer.

Thanks for taking the time for the reply.

Harry