Thanks to all those posting here who are helping to answer questions. I’m going to take the weekend to Deliberate, Cogitate and Digest the outlined new pension scheme. The examples in the outline document are very helpful. However, it would have been useful to have some examples for personnel leaving at aged 55 formally under AFPS 75. My initial feelings and questions are:
AFPS 75, PAS, planning to retire at 55 after 35 years of service.
1) The FAFPS EDP monthly income and lump sum may not be as bad as first feared (lots of maths need over the coming days to confirm). The 1/47th accrual rate is good news.
2) I understand I have the ability to take the FAFPS pension at 55 which was a critical requirement for me. Although the amount it will be actuarially reduced is still a big unknown to the financial impact of leaving at 55. I do not plan to stay until 60 because at 60 I am considerably less employable in civi street and after 35 year of service I desire a less unpredictable lifestyle.
3) My second major concern I have is if I had to PVR prior to age 55 would I have to wait until 66/67/68 to get the full benefits from the FAFPS? Currently under AFPS 75 I would receive the full pension immediately. For example if I had to PVR at aged 50 would I now have to wait 16+ years for the full FAFPS benefits? This is a huge financial loss and a lot worse than for those on AFPS 05 as I think they already had to wait until age 65. This basically creates an unwanted stay until 55 or go before 2015 decision.
If anyone can clarify or expand on these points it would be much appreciated.
Last edited by Albert Another; 2nd Aug 2012 at 19:38.