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Redundancy reduction in payment? - changes to AFPS 75

Ninja_Stoker

War Hero
Moderator
Hmmn, interesting timing.

My attention was drawn to the following amendment, incorporated 06 April this year. To be honest I haven't a scooby what the maximum payment was beforehand, but am advised it was double, possibly treble this amount. Relevant text highlighted in red, below.

On left side of page, Under opening options, open as whole instrument: http://www.legislation.gov.uk/uksi/2010/345/made

The Armed Forces (Redundancy said:
Eligibility for redundancy payments
9.—(1) A member of the armed forces is entitled to a payment under article 10 if conditions A to D are met.

(2) Condition A is that the person’s service as a member of the armed forces began before 6th April 2005.

(3) Condition B is that the person is not an excluded person.

(4) Condition C is that the person has been notified by the Defence Council that they will be treated for the purposes of the AFRS 2010 as having become redundant.

(5) Condition D is that the person’s service as a member of the armed forces ceases, in pursuance of a notification mentioned in paragraph (4), on a date after 6th April 2010.

(6) In paragraph (3) “excluded person†means—

(a)a person who is excluded by their terms and conditions of service from entitlement to payments under article 10, unless the Defence Council has agreed that they be treated as if those terms did not apply; or

(b)a person who would be entitled to a payment in respect of a notification under the Armed Forces Redundancy Scheme 2006(13) had the notification referred to that Scheme.


Entitlement to redundancy payments for those eligible under article 9
10.—(1) A member of the armed forces who is eligible for a payment in accordance with article 9 (an “eligible personâ€) becomes entitled to a payment under this article when the eligible person ceases to be in service in the circumstances specified in article 9(5).

(2) Subject to paragraph (4), an eligible person is entitled under this article to a lump sum payment calculated in accordance with articles 11 to 14.

(3) The lump sum is payable before the expiry of the period of 3 months beginning with the day on which the eligible person ceases to be in service in the circumstances specified in article 9(5).

(4) An eligible person is not entitled to a further lump sum under this article if—

(a)a lump sum under this article has previously been received by the eligible person;

(b)that lump sum would be liable to repayment under article 15; and

(c)that lump sum has not been repaid before the time when the eligible person would otherwise become entitled to the further lump sum.



14.—(1) If a member of the armed forces who is entitled to a payment under article 10—

(a)is entitled to a maximum pension under the AFPS 1975 when that person’s service ceases, or

(b)would be so entitled if the person were an active member of the AFPS 1975 in relation to the service that is ceasing,

the amount of the lump sum payable under article 10 must not exceed 6 months’ pay.

(2) In this article “maximum pensionâ€, in relation to any person, means a pension calculated by reference to the highest number of years of reckonable service that may be used in that calculation.
 
Saw this myself. I believe the previous amount was 18 months pay. Suspicious timing, huh?

I complete my 22 on 5th November 2010, but have EC5. I am guessing that once past the 5th Nov I will still get my gratuity, full pension + 6 months pay if made redundant.
 
This Statutory Instrument applies to members of AFPS 75. The 2006 Statutory Instrument applies to members of AFPS 05.

There were DINs about this in 2004 and, if you still have your OTT booklet, you will find reference to these changes being planned - the idea being that the redundancy benefits should be very similar for Service personnel whichever pension scheme they belong to.

Take a look on the MOD website under 'armedforcespension' - there should be a booklet which puts the rules in plain English. If you still have questions join the Forces Pension Society.
 

Ninja_Stoker

War Hero
Moderator
Tis_I_LeClerc said:
This Statutory Instrument applies to members of AFPS 75. The 2006 Statutory Instrument applies to members of AFPS 05.

There were DINs about this in 2004 and, if you still have your OTT booklet, you will find reference to these changes being planned - the idea being that the redundancy benefits should be very similar for Service personnel whichever pension scheme they belong to.
.

My bold.

:lol: The idea, in actual fact. having diddly-squat to do with pensions parity, but being: "Let's reduce our legally committed liabilities."

We've yet to come across an "improved scheme" that didn't do just that.
 

3yearstilltx

Badgeman
JunglyDaz said:
Saw this myself. I believe the previous amount was 18 months pay. Suspicious timing, huh?

I complete my 22 on 5th November 2010, but have EC5. I am guessing that once past the 5th Nov I will still get my gratuity, full pension + 6 months pay if made redundant.

I don't think so.

I have the din in front of me and Gratuity is never mentioned. 8O

I read it as you would get 9 months pay and your Immediate pension monthly.
 
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