Ginseng, pse check PMs
Further to my last post, I have phoned AFPAA again today and spoken to a key player in the pension policy department. I believe I am now clear on what the situation is regarding PA pension enhancements under AFPS 75:
The OF2 enhancement rate of £1.044 for pilots does indeed exist as stated by Ginseng, but NOBODY serving in the RAF will receive this rate. The OF2 in question is a Royal Navy (RN) Flt Lt equivilant (i.e a Lieutenant).
This is because the RN does not have our reserved rights to the `Specialist Aircrew Flt Lt` band for pension purposes on transfer to the PA Spine. So the maximum basic pension that a Lt can therefore achieve at age 55 with 34 years reckonable service (before any enhancements) is £19882 (the same as an RAF ground branch Flt Lt). In other words, a RN Lieutenant who joins the PA Spine is effectively about £4100 behind us in pension terms at age 55 before any PA enhancements. This was eventually deemed to be `unfair` when the PA spine was being formulated and so the RN was given a bigger daily enhancement rate (£1.044/day) to try and restore some of the balance at age 55. Even after that, the RAF Flt Lt is still better off as you will see shortly.
The on-line pension calculator is ABSOLUTELY CORRECT in all respects (apart from not crediting `part years`) and does use the £1.044 rate for RN PA Lt pilots only, the £0.707 rate for RAF Flt Lts and the £0.705 rate for Sqn Ldrs. Try it for yourself.
Some illustrative calculations:
1. RAF Flt Lt pilot with 34 years reckonable service with 14 years on the PA Spine:
AFPS 75: (14 x 365 x £0.707) + £23982 = £27595
AFPS 05: (34/70 x £67174) = £32627
2. RN Lt with 34 years reckonable service with 14 years on the PA Spine:
AFPS 75: (14 x 365 x £1.044) + £19882 = £25217
AFPS 05: (34/70 x £67174) = £32627
It clearly follows that RAF PA Spine Flt Lts and Sqn Ldrs will indeed get very similar pensions in AFPS 75 because of the almost identical enhancement rates. Hope this helps.