But fobotsco - beg to diff.
Officer X leaves RAF at 38/16 point, is entitled to retired pay of £12k pa and a terminal grant of £37k. He/she can commute £26k, at a cost to retired pay of £3k pa. Here the 'rub' :
the amount of SRPcommuted will be deducted from your 'Pension'... but only during the period between your 'New Exit Date'... and your 55th birthday. On that date, the abatement (sum commuted) will cease and any Pension Increases will come into payment.
Maybe I'm reading this wrong, but to a simpleton like me, Officer X gets a loan of 25 g that he/she pays back with money that he 'gets for nothing'. Given that Officer X is likely to be in full time employment with someone who, in theory is paying him as much, if not more, than the Govt did, I cannot see a downside. Also, if Officer X lives for 2 score and 10 past his/her 38/16 point, he/she only has to 'slum it' for 17 of those years.
People, please tell if I read this wrong.
