Originally Posted by
4everAD
I believe the increase to AFPS15 is related to average earnings which was 7% this year, this increase has been applied already to the 15 part (the pension calculator hasn't been updated yet though). The 75 uplift depends on the pay rise we get so no doubt will be lower.
Kind of, I’ve wrestled with this one in my mind before. The AFPRB recommendation is trying to preserve the value of your current pay rate - so if inflation has averaged 2% the previous year and AFPRB recommend 3%, then you will see a 1% rise overall. The same goes for any of the AFPS - if the Main Pay (which is pensionable) goes up: the ‘representative rate of pay’ for AFPS75 will go up (so will the final rank pension); for AFPS05 then if your Main Pay goes up then your “1/70th of your best 365 days pay in your last 3 years” will also attract that uplift; for AFPS15 then again if Main Pay goes up then your “1/47th of your annual pay going into your notional pot” will also go up by that amount, however, the Annual Wage Earnings (AWE - which is different to inflation) will only grow that deferred pension pot over the next few years.
You have to do some fancy maths with understanding the full effect of the pay rise on AFPS15, as it is more than just the rise itself.