Originally Posted by
Countdown begins
On 15 you have to do until age 60 to get the enhanced pension. A day before that,. and it’s a much smaller EDP and wait til you reach pension age, 66-68. It’s a gamble to be on 15, as it is a cost saving measure.
Isn’t 6-8 years’-worth of the difference between the 59.99yr EDP and the 60yr pension almost exactly equal to the lump sum you get if leaving on EDP terms? I know lots of people who have deliberately left shortly before their end of engagement precisely to access the money in this way. It’s a useful choice to have. When I took the decision to accept the age 60 end of service, I calculated that I could PVR/ET at any point after age 55 without taking any pension hit at all. The 75 portion is fully accrued by then so it can’t be at the PVR rate.
15 is also better than 75 for some due to its continued accrual beyond 34yrs commissioned service and the advantage of averaging the higher salary in the second half of a career. A cost-saving measure over a whole career, for sure, but those with an even mix of 75 and 15 have done well I think.