FAFPS 2015
Join Date: Jul 2007
Location: @exRAF_Al
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Agreed. The terms are slightly different though.
An instance like that can have absolutely no justification; talk about knowing the price of something and the value of nothing.
An instance like that can have absolutely no justification; talk about knowing the price of something and the value of nothing.
I posted this a few years ago and now the Armed Forces Calculator now includes FTRS I am pleased to say my prediction below is correct! (Very happy boy indeed!)
LJ 
Quote:
It's a little unclear for FTRS as it states that FAFPS will only pay out at or after the proposed 20/20 point. With some FTRS taking contracts at age 40 or above, does that mean working to a 20 year point or wait until age 65 when most FTRS retire age 60?!
If it is as before, where RFPS05 paid 1/70th of final pensionable salary and FAFPS pays 1/47th of final pensionable salary, then I am very much "quids in" and my pension at 60 for my FTRS time will be £16k under FAFPS whereas under RFPS05 it would be £10.7k!
Endqoute:
I managed to answer this via the excellent videos posted by the FAFPS Team on the Defence Intranet. Basically, anyone, including those that have not done 20yrs, will get an immediate "full career pension" if they serve to age 60yrs (the NPA). However, there is no lump sum unless you commute under the surrender £1 pension for £12 lump sum rule (1:12 rule).
Anyhoo, I ran the numbers for my current 2005 pension over FAFPS for the same period and for those that go the distance to age 60 it should be good news:
2005 Pension for me would realise £10.7k pension and a £32.1k lump sum at age 60
FAFPS Pension for me would realise £13k pension and a £36k lump sum (under a 1:12 commute) at age 60
So, happy days for some for others not
I then thought, hang on, they're supposed to be saving money. How are they doing this? Well fewer make it to the "final post" of 60 than leave at 40-something, and the majority will get paid less during the transition period so it will save in the short/medium term - that is what the Govt is trying to do.
I must admit, I also like the idea of flexible lump sum payments as most don't need lump sums, but a regular income at or above age 60 (kids have left and house is probably all but paid for).
It's a little unclear for FTRS as it states that FAFPS will only pay out at or after the proposed 20/20 point. With some FTRS taking contracts at age 40 or above, does that mean working to a 20 year point or wait until age 65 when most FTRS retire age 60?!
If it is as before, where RFPS05 paid 1/70th of final pensionable salary and FAFPS pays 1/47th of final pensionable salary, then I am very much "quids in" and my pension at 60 for my FTRS time will be £16k under FAFPS whereas under RFPS05 it would be £10.7k!
Endqoute:
I managed to answer this via the excellent videos posted by the FAFPS Team on the Defence Intranet. Basically, anyone, including those that have not done 20yrs, will get an immediate "full career pension" if they serve to age 60yrs (the NPA). However, there is no lump sum unless you commute under the surrender £1 pension for £12 lump sum rule (1:12 rule).
Anyhoo, I ran the numbers for my current 2005 pension over FAFPS for the same period and for those that go the distance to age 60 it should be good news:
2005 Pension for me would realise £10.7k pension and a £32.1k lump sum at age 60
FAFPS Pension for me would realise £13k pension and a £36k lump sum (under a 1:12 commute) at age 60
So, happy days for some for others not
I then thought, hang on, they're supposed to be saving money. How are they doing this? Well fewer make it to the "final post" of 60 than leave at 40-something, and the majority will get paid less during the transition period so it will save in the short/medium term - that is what the Govt is trying to do.
I must admit, I also like the idea of flexible lump sum payments as most don't need lump sums, but a regular income at or above age 60 (kids have left and house is probably all but paid for).
