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Thread: AFPS 75 and NEM
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Old 23rd Apr 2013, 00:17
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Justanopinion
 
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Hueymeister- Yes, you will have to wait till 60 to recieve the pension benefits built from 1 April 2015, however, from age 55 you will recieve pension from AFPS 75/05.

Please see this example from 2012DIN01-063: Pension rights accrued under AFPS 1975 and AFPS 2005 (google it, it's the first document you come to and explains it well)

Example 8 – Full Career Pension – Service person promoted
An OF-3 (Lt Cdr, Maj, Sqn Ldr) has 10 years of service at the point of scheme transition. At some point beyond this point he is promoted to OF-4 (Cdr, Lt Col, Wg Cdr). He leaves the Armed Forces after 34 years of pensionable service at age 55.
He will begin to accrue pension benefits under the terms of the Future AFPS from the date of transition.
He will be entitled to receive, as his accrued AFPS 75 rights, both a taxable Immediate Pension of around £13,800 per annum and a tax free lump sum of around £41,400 at the point of leaving the Armed Forces. This will be based on the final rank he achieves, OF-4 (Cdr, Lt Col, Wg Cdr).
His pension will be increased annually by the Consumer Prices Index.
In addition, the OF-4 will be entitled to pension benefits for the 24 years of pensionable service under the Future AFPS in accordance with the rules of that scheme. The rules of the new scheme, including when pensions will be paid, are under development.
So, as per the last paragraph, this individual will take home whatever 24 years worth of the new scheme is, but from age 60. This is in addition to the pension he/she will have been taking from age 55 (based on the 10 years served on the old scheme prior to 1 April 2015).

Last edited by Justanopinion; 23rd Apr 2013 at 00:27.
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