Originally Posted by
Countdown begins
I’m not the oracle, just read into my area of interest.
can you expand on the benefits piece?
Say they leave in 2024 having accumulated 20 years on AFPS75 and 2 years on AFPS15. They would receive a lump sum and immediate pension worth roughly 91% (20/22) of a ‘pure’ 22-year AFPS75 pension, plus a 2-year AFPS15 EDP (which because of their high salary in those 2 years is potentially worth more than the ‘missing’ 9% of the 75 pension). The AFPS75 entitlement doesn’t go away; for instance it is not all converted into a 22-year AFPS15 EDP just because they retired 2 years after the scheme changed. This is what’s known as “accrued rights” and has been a sacrosanct principle of all the pension reforms over the last 15 years. The calculation is a good deal more complex than I’m making out here but I think it illustrates the principle. The actual formulas are available in the pension legislation (see links
here) but you will need to read very carefully indeed. Or wait for the official calculators to be updated, or join the Pension Society!