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I read that the Iron Hands lost a lot of their Terminator armor due to the DSM, and so they dispersed the armor amongst veterans who now lead tactical squads. I don't see any rules to reflect this, but can I break WYSIWYG to make my Sgts into Termies?

Not anymore, sadly. There was a thing when we had the "Chapter Traits" book that allowed for you to take a Trait that let you do exactly this though.

That's infortunate, because it seems so cool. One of the cooler and fluffy parts of Iron Hands.

You can do this if you use Space Wolves rules.

IH fluff has seen quite a bit of retcons the past few years. The lack of terminator armour is old fluff. It no longer made sense seeing as that terminator armour went from being irreplacable relics from the past to still being able to be newly made, albeit slowly. So now the IH have already long refilled their supply of armour over the 10,000 years since the HH.

 Iron_Captain wrote:
IH fluff has seen quite a bit of retcons the past few years. The lack of terminator armour is old fluff. It no longer made sense seeing as that terminator armour went from being irreplacable relics from the past to still being able to be newly made, albeit slowly. So now the IH have already long refilled their supply of armour over the 10,000 years since the HH.

But in the latest book (Medusan Wings) it's back to being a rarity. I think it's more psychological rather than a physical lack - the Morlocks were weak for being wiped out and not saving Ferrus.

To be fair, you could always model your Sergeants in Terminator armour, but count them as PA for all rules purposes. Outside of a tournament, I can't see more people having a problem with this, it doesn't really affect the game and would look awesome.