Â£1136 would be 12% tax ! I think you mean Â£1282 :lol:
I think we get the logic though, incidently regulars do not make a direct pension contribution as the Police do for example, however it is a condideration of the AFPRB who consider it as part of the overall pay package and they have made quite a deal of it at the last two roadshows that I attended!! So much so that I now consider it a contributable pension, makes me feel that my pay isn't so bad after all!
Bounty. In the dark ages the bounty was about Â£50 pa, that is until the RNR was required for service in 1982. However at the time volunteers were used as the reserves could not be mobilised. without the Queen's Order in Council.
The bounty was raised to the present level to reflect the change in recall status ie can be recalled whether or or not the person wants to go to war. Also bear in mind the effect of being recalled on job protection etc. One effect of the RNR service is that NI contributions add to the OAP,. not a lot but handy.
There was an announcement on local radion here this morning that with effect from March 2007, Canada's reservists will have the right to participate in a pension scheme. This will apply not just to FTRS type service, but also to "normal" drill / ORT attendance where the reservist earns a pay level above a certain threshold. It also appears that this pension scheme can be "back-dated" to address service from 1999 rather than just being applicable from next March.
I cannot see that we will not be included into the Armed Forces Pension Scheme in due course.
However I would expect it to be at the expense of Bounty.
This will not only tie-in with Equal Opportunities and Unfair Treatment of Part-Time Workers legislation, but will also help ease the cash flow of HMG.
I accept that our service may not fall under either such Statutory Instruments, but MoD can sell this as joined up Government, or as best practice.
The notional contribution of a Reservist's pension contribution say 24% (which is a realistic figure) of your daily rate multiplied by the number of days worked in a year, which will be offset as an expense to HMG until retirement, will be significantly less than paying Bounty in the current year, and will defer the cost for another Government to fund and worry about paying out of general taxes.
Unlike "normal" pension schemes, AFPS and PCSPS (Civil Service) are "notional" schemes ie there is no pot of money sat there to fund them. General taxation funds the payments made in any year.
On that note, I bid you all a Merry Christmas and a safe New Year, wherever you may be.