I don't think you can compare between Paras getting Para pay and the loss of half Flying Pay on PVR, can you. Surely they are two different things.
I believe Paras have to jump to qualify each year. Don't jump=No para pay.
If flying pay is danger money, what is so dangerous about sitting behind a desk for a ground tour?
Oh, no idea about which form to use, but I'm sure it is not beyond you to pick up a phone and call PSF, is it?