PAS Changes
Just received this bomb shell. It affects those of us who were offered PAS in Oct 05 for 06 and 07, and signed up to it before the 16 Dec 05 deadline. This letter was dated 16 Dec 05 and effectively changes the terms of PAS that were extant and which we signed-up to.
CHANGES TO FRI2 ELIGIBILITY AND THE PROFESSIONAL AVIATORS PAY SPINE UNDER ARMED FORCES PENSION SCHEME 2005
The introduction of Armed Forces Pension Scheme (2005) has required changes be made to the eligibility criteria for the aircrew FRI21 and the rules for joining the Professional Aviators Pay Spine (PAS). These changes have just been approved by the Centre Policy staffs and are as follows:
a. FRI2. Eligibility to FRI22 is tied to the immediate pension point (IPP)3 under Armed Force Pension Scheme 1975 (AFPS 75). For personnel who elect to remain on AFPS 75 under the offer to transfer (OTT) process there is no change to eligibility at the IPP. Under AFPS 05 the IPP is replaced by the Early Departure Payments (EDP) point4 therefore eligibility for FRI2, for those personnel who have elected to join AFPS 05 is at the EDP point. If aircrew personnel have already made their election decision and wish to change it in light of this eligibility change, they need to write to the OTT Service Centre before the 31 Mar 06.
b. PAS. Under current rules (AFPS 75), personnel who are selected for the PAS join the PAS from date of selection. On completion of a 5-year return of service (ROS) they are then eligible for a pension based on the representative rate for their rank plus the appropriate PAS pension supplement paid for each day they have served on the PAS. If they fail to complete the 5-year ROS, their pension is based on the appropriate representative rate with no supplement. There are no changes to PAS pension rules for personnel who elect to remain on AFPS 75. As AFPS 05 is a final salary scheme it is not possible to add a supplement to any pension benefits. Thus, personnel who are selected for the PAS and are serving under AFPS 05 will remain on their basic pay plus flying pay for 4 years. At the 4 year point they will join the PAS pay spine (at the level they would have been on had they entered the PAS pay spine on day one of selection). After 5 years they will then have accrued 365 days service on the PAS pay spine5. If an individual chooses to leave before the 5 years are complete, they will receive a pension based on the best pay earned for 365 days in their last 3 years of service6.
2. Personnel who are already serving on the PAS and elect to transfer to AFPS 05 will remain on the PAS. It is acknowledge that these personnel may not have to complete a 5-year ROS as AFPS 05 is a final salary pension scheme.[/I]
Would appreciate advice/Comments; my chief clerk's attitude was that we were paid too much anyway, so tough.