There is a lot of rubbish being talked about concerning the new pension scheme, but here are a few points to consider and maybe educate some.
My understanding is that those people with the option to change to the new scheme will be receiving some paperwork in July, including I believe a personal assessment, with 3 months to come to a decision.
Do not forget that the new scheme was not designed for the benefit of people already serving, rather for new entrants off the high street. Having said that, that does not mean that some people serving, though not all, will not benefit from joining AFPS 05. I remember when the PA spine was introduced people saying "... the MOD will never change our terms of service for the better...... it must be all about saving money..... there must be a catch somewhere.....you are bound to be better off staying Spec Aircrew...etc". However, the PA deal was better, and I am very happy on it thank you!!
Back to AFPS 05. There is a very good schematic diagram of the new and old schemes (a picture paints a thousand words..) in the March 2005 edition of AMPlify, page 30. Yes, the benefits of the new scheme increase the longer you serve, and reach a maximum if you stay in until 55, but that is not to say it is a disaster if you leave earlier than then. As Muff Coupling says all the information is available on a series of MOD web pages. The calculations to work out your own situation are simple enough, but somewhat boring.
Taking myself as an example, PA spine aircrew. Say I left the RAF at 50. Lets examine my pension payments under the new and old schemes (yes I had to make some assumptions about pay rises in the next few years - I AM NOT 50 YET!!)
AFPS 75
Pension on retirement £22,100 Gratuity £66,300
Pension payments 50-55 5 years at £22,100 (no RPI)
Pension payments 55-65 10 years at £22,100 (RPI up lift and linked)
Total payments 50-65 £66,300 + £110,500 + £221,000 + RPI addition = £397,800 + RPI component
AFPS 05
"Pension" on retirement £26,200 Gratuity £78,600
EDP payments 50-55 5 years at £17,500 (66.7% of £26,200 no RPI)
EDP payments 55-65 10 years at £19,600 (75% of £26,200 RPI uplift and linked) + at 65 second tax free lump sum £78,600 plus RPI
Total payments 50-65 £78,600 + £87,500 + £196,000 + £78,600 = £440,700 + RPI component.
I have not gone into the RPI side of things, but it would appear that by age 65 I am some £40,000 better off under AFPS 05. And every year I live past 65 I am a further £4,000 (+ RPI) a year better off. True, I might not live to 65. It is also true that I do not get as much money up front with AFPS 05 as I do with AFPS 75, but am I planning on retiring at 55 or working on to 65? If I die before my wife 60% of £26,200 is better for her than 50% of £22,100.
So there are a lot of variables to consider. When I expect to leave the RAF, will I carry on working, do I need more money early on in retirement, how good is my health, does my wife have a pension, etc, etc..... These are my particular circumstances, not yours.
I guess my point is that there is a lot more to it than, .."the new scheme is no good unless you stay in until you are 55..." Do your own sums, take advice where you can, but form the informed, and then make your own decisions, hopefully wisely.