To take the 12-year option or not? That is the question.
The way I read it is that if you serve beyond your 40th birthday, you will be given a lump sum but no annual pension until you are 60; does anyone know how much that lump sum would be if you left after your 40th. Even if you are on AFPS75 it implies that everyone would be moved to the new scheme. They (Government & Mil hierarchy) are very vague in their statements. In hindsight, it was obvious that they were always looking at ways to make massive, scathing cuts to the overall pension costs. Personally, I exercised my 12-year option last year because I had absolutely no faith in whatever the new system would entsil and my IPP was 6 months after the changeover date. Another fincancial benefit to exercising your option versus PVRing is that you don't lose your flying pay;with the current 12-month PVR notice period that amounts to approx £15,000 for someone on the higher rate of flying pay. I wouldn't be surprised if the lump sum was significantly less than the current lump sum awarded at your IPP.
Last edited by Whirling Wizardry; 31st Jul 2012 at 20:37.