General points to note:
Potentially some personnel will be awarded significant amounts of money as a result of redundancy. It is advisable to gain a clear understanding of what is taxable and by how much, in order to allow sensible financial planning. In summary, Redundancy Compensation Awards and pension lump sums (gratuities) are tax-exempt, pensions are taxable. The Royal Navy website provides further detail to members who are logged in – search redundancy on the site.
How and when will any public debt be recovered?
Individuals will be asked how they intend to repay any crown debts, including LSAP. If the money is not to be taken from the Redundancy Compensation Award it will be taken from pay over the period left to serve.
Financial Advice/Support Organisations
For advice and assistance with financial issues please visit the ‘Financial Planning & Advice‘ and the ‘Money Worries & Debt‘ sections of our website. These sections provide links to specialist organisations who can offer guidance on these matters. Alternately the serving person’s DO or UPO can provide direction.