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Finance
This section briefly explains the existing arrangements for pay, allowances, and currency exchange facilities on posting to BFG.
The information given below is confined to basic details. Your RAO will advise you where to get the full information.
Rate of Exchange
The rate of exchange of Sterling (£) to Euros or vice versa may vary. Various rates are explained below.
a. Forces Fixed Rate (FFR). The FFR is used when converting pay and allowances into Euros. It remains constant for a minimum of one calendar month, and only changes when it is sufficiently different from the commercial rate.
b. Commercial Rate. The commercial rate of exchange is used by the banking world and fluctuates daily. The FFR was introduced to avoid such fluctuations.
c. British Forces Post Office Accounting Rate (POAR). This is the rate used by the British Forces Post Office for the purchase of stamps and postal orders and the encashment of personal GIRO cheques. It changes weekly.
d. NAAFI Rate. NAAFI use an exchange rate which closely follows the commercial rate.
Pay and Allowances - Banking
If you have not already done so in the UK, you will need to elect how you wish your pay and allowances to be distributed. Your RAO will explain the procedure.
Bank Accounts
You are advised to maintain both UK and German bank accounts. A UK bank can have sums, either main pay or allotments, credited directly to it by APC Glasgow. Retaining your UK bank account would be useful to meet the needs of regular debits, such as standing orders or Direct Debits for insurance, mortgage repayments, hire purchase etc. NAAFI will accept sterling cheques supported by cheque cards and/or Switch cards in payment for goods and services.
UK Bank Cards
Cards with the VISA, MasterCard, Cirrus and various other symbols may be used at German ATM machines to obtain cash from your UK accounts. There may however be a service charge raised by your bank for using this facility.
NAAFI Shopping Permit and Ration Card (BFG Form 55/55A)
NAAFI Shopping Permits and Ration Cards are required for all members of the family (over 16 years of age) who are granted dependant status (see paragraph 2.03 above). This enables them to shop in the NAAFI and to purchase the various controlled items: coffee, cigarettes, gin and whisky. (Gin and whisky allocations are only available to those over the age of 18 and cigarettes to those over 16 years of age.) Your RAO or Families Office will issue the shopping permits and ration cards on request.
Kindergeld
Kindergeld is the German equivalent to UK Child Benefit and may be claimed by a spouse of a Serviceman or Servicewoman and spouses of Members of the Civilian Component (UKBCs, UKBTs and Sponsored Contractors who have been granted BFG Dependant Status etc). Advice may be sought on arrival in Germany from your RAO.
Disturbance Allowance
You may be eligible for Disturbance Allowance in respect of your move overseas. The basic rate together with the child element (if applicable) may be submitted up to 42 days prior to the family move. See your RAO for further details.
Local Overseas Allowance (LOA)
On arrival in theatre you should report to your RAO in order that your LOA may be started. The LOA rate you receive will vary, depending on whether you are single or married, whether or not you are accompanied by your spouse and/or children, and the number of children you have.
Child Benefit (CB)
Families in receipt of CB who proceed overseas continue to have an entitlement to Child Benefit regardless of whether or not the eligible child(ren) live with their parents overseas. Spouses, receiving payment of CB by way of a PO payment book, who proceed overseas should take their Child Benefit book with them and hand it in to their unit's admin office after completing the application form for Child Benefit to be paid overseas. Payment will then be made via pay accounts at FFR, together with normal pay and allowances. Those arriving at the overseas station and choosing this method of payment are required to establish their eligibility by visiting the RAO and completing an AF O1765. The Child Benefit book (or receipt if the book was handed in to the local post office in UK prior to departure) must be taken to the RAO.