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Strategic Defence & Security Review<br />

• Selected non-applicants will be transferred<br />

ashore no later than 30 June 2012.<br />

Overseas Postings<br />

Wherever possible, successful applicants for<br />

redundancy who are serving in overseas posts<br />

will be able to return to the UK no later than<br />

1 December 2011. Non-applicants selected for<br />

redundancy will be returned to the UK no later<br />

than 31 March 2012.<br />

Effect on remaining personnel<br />

As a result of notifying people of redundancy<br />

and then having to move them at short notice,<br />

all units will experience a degree of upheaval.<br />

To reduce the impact and to ensure that the<br />

Naval Service continues to meet its operational<br />

commitments there will need to be short notice<br />

changes to assignments for many of those<br />

remaining in the Service. In a nutshell it is<br />

likely that many people who were expecting a<br />

degree of stability will have to be re-deployed at<br />

short notice.<br />

Tranche 2<br />

The announcement of Tranche 2 redundancy<br />

fields due on 30 Sep 11 has been postponed<br />

until early 2012.<br />

Fleet Redundancy Cell (FRC)<br />

The FRC is the central point of contact for all<br />

redundancy questions. In addition to standard<br />

business hours, the FRC Team will be available<br />

throughout the weekend of 1-2 Oct 11.<br />

What to consider if made redundant<br />

√ When will the Redundancy<br />

Compensation Award be in the bank<br />

account and how much will it be?<br />

The Armed Forces Redundancy Calculator,<br />

accessible through the Internet at www.modrc.co.uk.<br />

can provide a forecast of the lump<br />

sum payment due to an individual if they are<br />

made redundant. Details of the final award<br />

will be confirmed by letter by the Service<br />

Personnel and Veterans Agency (SPVA) once<br />

the individual has been formally discharged<br />

and when, therefore, the final date of exit is<br />

known. It is important to note that it could<br />

be up to 35 days after the final exit date<br />

before the Compensation Award is in the<br />

bank account. SPVA will attempt to complete<br />

all processes to make the payment as soon<br />

as they can but there are certain limitations<br />

to the JPA system. The legal position is that<br />

redundancy compensation payments have to<br />

be made within 3 months of the final date an<br />

individual leaves an organisation and 35 days<br />

is well within this time-frame. The key point<br />

here is that no-one should make financial<br />

commitments until the money has entered<br />

the bank account.<br />

√ When does pension entitlement (if<br />

applicable) start and how much will it<br />

be? The Pension Calculator at www.modpc.co.uk<br />

provides a forecast of pension<br />

entitlements. Again a letter from SPVA will<br />

confirm the details once an individual has<br />

been formally discharged and the final date of<br />

exit is known.<br />

√ What other exit payments may be due<br />

and when are they payable? Some personnel<br />

being made redundant will also be entitled to, for<br />

example, a pension lump sum (gratuity) in addition<br />

to a Redundancy Compensation Award. Again,<br />

SPVA will confirm all the details once an individual<br />

has been formally discharged and the final date of<br />

exit is known.<br />

√ Tax Status? Potentially some personnel will<br />

be awarded significant amounts of money<br />

as a result of redundancy. It is advisable to<br />

gain a clear understanding of what is taxable<br />

and by how much, in order to allow sensible<br />

financial planning. In summary, Redundancy<br />

Compensation Awards and pension lump sums<br />

(gratuities) are tax-exempt, pensions are taxable.<br />

The redundancy page on RNCom provides<br />

more detail.<br />

√ How and when will any public debt be<br />

recovered? Individuals will be asked how they<br />

intend to repay any crown debts, including<br />

LSAP. If the money is not to be taken from the<br />

Redundancy Compensation Award it will be taken<br />

from pay over the period left to serve.<br />

√ When must Service Families<br />

Accommodation (SFA) be vacated.<br />

Normal rules for personnel leaving the<br />

Service will apply, there are no special<br />

arrangements for anyone made redundant.<br />

JSP 464 is available through the internet for<br />

further information.<br />

√ What happens if a property was purchased<br />

under the Armed Forces Home Ownership<br />

Scheme (AFHOS)? It is suggested that contact is<br />

made with the AFHOS agent on 0800 028 1980<br />

to discuss transition arrangements.<br />

√ What removal and disturbance allowances<br />

are permitted to redundees who are<br />

leaving SFA and relocating to another part<br />

of the UK or overseas? The redundancy page<br />

on RNCom provides more detail. UPOs can also<br />

provide further information.<br />

√ What removal, disturbance and storage<br />

allowance is permitted if returning to the<br />

UK from abroad? The redundancy page on<br />

RNCom provides more detail. UPOs can also<br />

provide further information.<br />

√ What do Foreign and Commonwealth<br />

personnel need to consider? F&C personnel<br />

who are made redundant, whether applicants<br />

or non-applicants, need to consider whether<br />

they wish to return to their country of origin or<br />

remain in the UK. If they wish to return to their<br />

country of origin they must consider how they<br />

will get themselves and their families home (the<br />

redundancy page on RNCom provides more<br />

detail). If F&C personnel without leave to remain<br />

wish to remain in the UK, application must be<br />

made through normal channels i.e. the UK Border<br />

Agency. Normal rules for vacating SFA upon<br />

leaving the Service apply.<br />

√ When does Continuity in Education<br />

Allowance Cease (CEA) entitlement (if<br />

applicable) cease? The redundancy page on<br />

RNCom provides more detail. The Children’s<br />

Education Advisory Service (CEAS) at www.ceas.<br />

org.uk should also be able to provide details.<br />

√ If CEA entitlement is ceasing or personnel<br />

are re-locating to a new area in the UK<br />

then consideration needs to be given to<br />

applying for new schools. Local Education<br />

Authority websites are the best place to start<br />

understanding the process of applying for school<br />

places. CEAS may also be able to advise.<br />

√ Access to medical and dental care. If<br />

personnel are re-locating to a new area in<br />

the UK consideration needs to be given to<br />

registering for medical and dental care. Whether<br />

moving or not, the Service leaver will need to<br />

register, possibly for the first time.<br />

Tranche 2<br />

<strong>Information</strong> on which branches and rates/ranks<br />

are eligible for selection in the next Tranches will<br />

be released in the same way as for Tranche 1,<br />

and similar rules used for Tranche 1 will apply in<br />

Tranche 2.<br />

Useful Links<br />

Naval Families Federation www.nff.org.uk<br />

SPVA www.veterans-uk.info<br />

RN Community www.rncom.mod.uk<br />

Citizens Advice Bureau<br />

www.citizensadvice.org.uk<br />

Relate www.relate.org.uk<br />

UK Border Agency<br />

www.ukba.homeoffice.gov.uk<br />

Tax/doctors/dentists www.direct.gov.uk<br />

NPFS www.rncom.mod.uk/NPFS/NPFS.aspx<br />

SSAFA www.ssafa.org.uk<br />

White Ensign www.whiteensign.co.uk<br />

Regular Forces Employment Association<br />

www.rfea.org.uk<br />

Royal Navy Benevolent Trust www.rnbt.org.uk<br />

RNRM Children’s Fund<br />

www.rnrmchildrensfund.org.uk<br />

HOMEPORT AUTUMN 2011 7

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