Armed Forces: Redundancy

Defence written question – answered on 26th June 2012.

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Photo of Richard Drax Richard Drax Conservative, South Dorset

To ask the Secretary of State for Defence whether any soldiers have been made redundant before qualifying for a full pension.

Photo of Andrew Robathan Andrew Robathan The Parliamentary Under-Secretary of State for Defence

In order to ensure that the redundancy programme is fair to all involved, clear selection criteria have been published by each of the services. While rank and seniority are factors which are reflected in selection fields, length of reckonable service, which is closely associated with age, is not.

While we do not comment on specific personal cases, some soldiers will leave on redundancy before qualifying for a full pension. The Armed Forces Redundancy Schemes pay larger tax free redundancy compensation lump sums to those who narrowly miss out on immediate incomes than they do to those who qualify, and many of those who leave before qualifying are likely to have been applicants for redundancy.

Whereas the majority of other ranks normally have to serve for 22 years before receiving an immediate income, the Armed Forces Redundancy Schemes reduce this requirement to 18 years. This concession of four years will enable many redundees to receive an immediate income for which they would otherwise not have qualified.

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