PPRuNe Forums - View Single Post - FAFPS 2015
Thread: FAFPS 2015
View Single Post
Old 15th Mar 2012, 22:58
  #17 (permalink)  
Greenielynxpilot
 
Join Date: Mar 2005
Location: UK
Posts: 31
Likes: 0
Received 0 Likes on 0 Posts
There are at least two factors to think about when assessing the value of your pension: The size of the overall cake, and the size of your slice.
  • Each year of service gives you a slightly bigger slice. Under AFPS75 this is capped at a maximum of 48.5%
  • Each promotion increases the size of the overall cake.
  • Each AFPRB pay award also increase the size of the cake (well - lets call it sprinkles on the icing).

As I read the DIN - someone who has accrued an X% sized slice of cake under AFPS75/05 as at 1 Apr 2015 will maintain that sized slice of any bigger cake, should they promote after 1 Apr 2015. And of course, all cakes are likely to grow a little with each future pay award

Service post-1 Apr 2015 will start to earn slices of a second cake, which has no fruit or nuts, and no jam or butter cream filling. The recipe for this cake is based on career average earnings - but in the first year of service under the new scheme you will only have earned a 1.11% sized slice of this cake (or whatever accrual rate is eventually agreed upon).

The point is that this later period of service will no longer lead to bigger slices of the former, tastier cake - so there is absolutely no chance at all that anyone will be better off, unless the new pension is more generous than the one it replaces ... which it won't be.
Greenielynxpilot is offline