FAFPS 2015
There's a briefing team doing the rounds on the new Future Armed Forces Pension Scheme (FAFPS), here's what I heard the other day. Feel free to add what you hear:
1. Those with 10years or less to serve will get protected rights to their old pension - also it will be for the rank they retire at and not the rank they hold at the 2015 point. (After thought was that there is a chance that staying on the old schemes might actually be a worse deal? Some bright spark thought that one up!)
2. Others will have to transfer after 1 April 2015 (note underline) and will have protected rights to their pension that will pay at the rank that they retire at in the future but at the frozen yearly accrual rate at 2015. The rest of their service will acquire a FAFPS pension. (Again, there is a chance that this pension may prove a better deal than staying on the old schemes for some individuals?)
3. Currently no idea of what FAFPS will pay but it will be non-contributary and also will remain competitive with other public sector schemes. It will be career averaging and those that promote faster will get a bigger pension even if they retire on the same rank as someone who has promoted slower.
4. Specialist Pay unlikely to be included.
5. There will be station based "focus groups" and surveys to complete for the consultancy period - no firm decision on FAFPS has been made on how it will work.
6. EDPs or IPs are likely to be paid later as people marry later, have children later and buy houses later (?!?).
7. No expectation that lump sums will be taxed in the future (they realise how massively it would affect retention).
8. New Employment Model (NEM) needs to tie in with FAFPS, so having it ready to roll out in 2015 is a very big ask!
That's all I learned but I'm sure others will take in bits that I missed. Please post what you learn so that we can all benefit from combined wisdom.
CPL Clott