New measures to reward and retain Forces personnel

Discussion in 'Finance & Pensions' started by chieftiff, Mar 19, 2008.

Welcome to the Navy Net aka Rum Ration

The UK's largest and busiest UNofficial RN website.

The heart of the site is the forum area, including:

  1. chieftiff

    chieftiff War Hero Moderator

    Looks like all of you serving people are going to be loaded:

    Link to MoD website retention bonus announcement

    The new incentives include a significant increase to retention bonuses for personnel below officer level, of up to £15,000, and a new £20m pilot scheme which will offer more affordable home ownership for Service personnel and their families.


    Bloody typical, I jump ship and they reward everyone else, I will just have to get Mrs Chieftiff to stay in longer :thumright:
     
  2. Ninja_Stoker

    Ninja_Stoker War Hero Moderator

    That photo in the link is rather amusing with a shifty-looking RAF type androgynous individual in it.

    Captions please.....
     
  3. the_matelot

    the_matelot War Hero Moderator

    As usual, it is aimed at the group that already have commitment bonuses at the 5 and 8 year point. There is NOTHING for people between the 8 and 22 year point.

    Right, how the hell does offering a decent sized retention to people up until their 8 year point only retain those who are past this point then?

    Typical Labour smoke and mirrors shite.
     
  4. chieftiff

    chieftiff War Hero Moderator

    Aw really!! Labour spinning, who would have thought?

    Mrs Chieftiff can still leave at her 22 then, we can split the big payrise I gave myself this year just by leaving (and next year, and the year after etc etc) :thumright:
     
  5. wave_dodger

    wave_dodger War Hero Book Reviewer

    Curious that Officers don't get any form of retention bonus. Especially odd given that I know of loads who actually have PVR'd of late - not just those that are considering/talking about it. I'd have thought the retention issue was affecting all areas.....
     
  6. Anticipate the next one in about six months ;)
     
  7. Maybe because there are too many of them already LOL
     
  8. I would have thought that at the point the pension trap becomes attractive anyway.
     
  9. the_matelot

    the_matelot War Hero Moderator

    It certainly isn't at the 11 year point and it won't for at least 4 more years IMO.
     
  10. chieftiff

    chieftiff War Hero Moderator

    I think it has still to be seen if the new pension scheme actually creates a pension trap in the same way as AFP75 did! Have a play around with the pension calculator, I certainly wouldn't be staying in for the sake of £3 to 4K a year for 15 years at PO level, everyone I know with half a brain has increased their service pay by more than that anyway. The new pension in preserved form pays out quite well at 65 with relatively little service and pays out little at 40 to "encourage" people to stay. I think it was a feck up to be honest, at least in terms of retention, as a money saving measure on the other hand..............

    It seems to change for the better on a daily basis now, benefits, benefits, benefits :dwarf:
     
  11. It's easy to throw figures of up to £15K about but the proof of this one will be in seeing the qualifying criteria for these bonuses. I expect that the top whacks will be payable to a few very key categories whilst the majority of those eligible [small percentage of the overall RN] will get considerably less – probably a small increase on current levels.

    As far as the officer question above is concerned - there are still some quarters who believe there are too many in the Officer Corps. The current slow down on extensions of commission and promotion is surely designed to assist the bloodless cull process. The last thing the MOD needs to do therefore is to encourage them to stay by offering bonuses.

    SF
     
  12. chieftiff

    chieftiff War Hero Moderator

    It reads like a scene from "yes minister" it would seem that these bonuses aren't in addition to the current commitment scheme, they are just an enhanced version, still fully taxable and you even get to pay NI contributions. You can of course take the bonus in chunks and not wait to receive the full £15000 after 8 years at which point you could PVR to complete 9 years (of course if you do the result is you get about what you would have got before)

    As for the housing scheme...... well that is still to be discussed with public bodies and commercial providers (who will of course run these schemes out of the goodness in their hearts.)

    Details here in the press release, read beyond the notes for editors for details.: Spin, spin, spin............
     
  13. sgtpepperband

    sgtpepperband War Hero Moderator Book Reviewer

    Like most retention bonus schemes the MOD are reactive according to the research data it has; presumably those non-Occifers who have served less than 8 years are the ones submitting their notice at the moment.

    If you want to voice your dissent then vote with your feet - I'm sure if everyone who is at that post-12 years' stage of their career decided to submit their notice the MOD would respond accordingly. However I'm sure they are well aware that that is unlikely to happen, as people want to guarantee their pensions - so either way they've got us over a barrel... 8O
     
  14. Yet an other attempt to get the service they need on the cheap, if they paid the lads properly with half acceptable terms of service there would be no recruting/retention problem.
     
  15. They pay us too little for me to stay. I am voting with my feet and have got half way through the PVR process.

    Sick of the way we get spin spun at us.
    Sick of the way we get treated like little children- despite our yrs of service.
    Sick of the waste of humans with little care from our paymasters.
    Sick of the way we get treated and 'compensated' on return from tours of duty.
    Sick of seeing the wounded and injured getting short shrift.
    Sick of seeing our ex servicemen surviving on the street (a major crime against our ex serving members).
    Sick of seeing good (wo)men pissed off about another incompetence towards our services.

    Guess thats it..... rant over! .................... Taxi for 1.
     
  16. There is information here too:

    Lords Hansard: 19 March 2008, Col.WS39

    Armed Forces: Retention

    The Parliamentary Under-Secretary of State, Ministry of Defence (Baroness Taylor of Bolton):
    My right honourable friend the Secretary of State for Defence (Des Browne) has made the following Written Ministerial Statement.

    The Ministry of Defence is determined to recruit and retain the right people for our Armed Forces. I wish to announce today two measures which I believe will enhance the attractiveness to service personnel of continuing their service career.

    First, I am announcing a significant increase in the value of the commitment bonus to £15,000 for those who agree to serve another five years, nearly trebling the amount currently available. From 2009, all those below officer level passing the four-year service point will have access to the new scheme. This is designed to encourage further retention in the critical four to eight-year period. The longer they serve the higher the payment will be.

    Secondly, we are launching a new initiative on home ownership for service personnel. Important steps have already been taken to assist service personnel with home ownership and to improve access to affordable housing, including the introduction of long service advance of pay and, more recently, the extension to service personnel of the Government's key worker living programme. The increase to the commitment bonus set out above can also help more junior personnel achieve their home ownership aspirations. MoD now wishes to go beyond this with a pilot scheme tailored to the particular needs of service personnel. In the coming months we will work with commercial providers and public bodies to identify the most suitable approach, which is likely to be based on shared equity or rent to buy arrangements, and involve an element of MoD investment. This will be launched during 2009-10, to run for up to four years, and some £20 million has been allocated for this purpose.
     
  17. Seen off for the last retention bonus, more than likely seen off for this one.
    That's what you get for 17 years dedicated service.
     
  18. so i've done 17 years and seeing out my 22

    will i get anything or does the MoD just expect me to serve out my time knowing it can pisss me off as much as it likes knowing full well that i aint gonna stick me notice in
     
  19. witsend

    witsend War Hero Book Reviewer

    Can't really remember in my 18yrs so many peeps around me leaving. Most seem to be guys under 30 who have had enough for various reasons, so i can see why the bonus is aimed at the younger lads. Once over 30, 12 year mark, the pension trap comes into play. Seen alot of guys take 2OE 5 or 10 and within a year or two have had enough. The only way I would consider 2OE was if i had an increase in pay equal to the amount my pension would pay monthly. In my eyes, the minute you do over 22 you take a pay drop, where after leaving, done 22, you should have enough to pay your mortage before even getting out of bed.

    link to pensions calculator for any1 whos not came across it before http://83.138.137.164:8080/
     
  20. For those looking at leaving early, it's worth doing the sums (apparently) to look at how much you'd have to earn outside to put into a pension, so that the combined pension is as much as you'd get from pusser at the end of say 2OE(5) or (10). If nothing else, it gives you a salary that you you should be aiming for (i.e. what you're earning now plus what you need to put into a pension to give you the same pension at, say, 45 or 50 years old). It's a reasonable amount of money to put into a 2nd pension, I'm told.
    For those who leave because of money grumbles, quite a few don't do the pension sums.....If anyone can explain in simple terms for the benefit of the readers, I'd be grateful. The theory makes some sense.
     

Share This Page