Soldiers Sacked to Avoid Pension Payments
After the recent scandal which saw many armed forces employees notified of their redundancies via email, you would have thought that the top military brass would be keen avoid further controversy. Not so it seems, if a recent report in The Telegraph is true.
It has been alleged that the British army has made a raft of experienced soldiers redundant recently, to avoid triggering additional pension payments.
Under the present rules, armed forces employees aged 40 or over with either 16 or 18 years of service, are entitled to claim a pension and a tax-free lump sum when leaving the British Army. Many of the 3,000 military personnel made redundant recently were on the threshold, and will no longer be eligible.
Major Richard Payne was less than three months away from reaching the 16 year service mark when he heard the news. The MOD deny that they have been selecting people for redundancy to avoid large pension payouts. They said in a statement:
“The length of service was not a consideration in the selection of individuals for redundancy and we have worked hard to ensure that those selected for redundancy receive the best possible pension and compensation package.”