From the OP -
Is it better to leave at 55, receive your 75/05 pension, and then if remaining in the RAF is for you, accept an FTRS role on the new pension scheme ?
My question - Does an FTRS engagement generate an abatement (or abeyance) to one's service pension (or lump sum even) that is already being paid ?
I ask, because this currently applies to teachers who take their pensions and then later return to teaching as 're-employed pensioners.' Catches a lot of them out and the pompous
'prevention of loss to the public purse' as if teaching in retirement was fraudulent, certainly doesn't seem to justify the cost of the harassment and administration. I ask because all government pension schemes are doubtless aligned and ruled by the treasury.
From JaJ –
I'm also concerned about lifetime contributions and whether this applies to AFPS05 and if so, how much is it and how do I calculate how much I've contributed???
My limited, amateur understanding is that the current lifetime allowance (£1.25m ?) applies to one's entire range of pension provision - which might include multiple workplace pensions, private pension plans and AVCs, (but not OAP at present.) Furthermore the LTA will take into account the growth of all those funds where 'growth' applies. The exception is for Final Salary schemes where the LTA is 'back-calculated' by multiplying your expected FS pension by
20. That is to say, if one's expected FS pension is 50k (yeah I know ...) it is multiplied by 20 to give you a deemed LTA of £1m.
The 'other lot' are talking about a reduction to £1m LTA from after the May election – to fund something or other ... as well as a reduction of tax allowance on one's pension contributions. If you exceed the LTA there are whopping penalties. NB I believe that for some odd reason, LTA doesn't apply to MPs and some other privileged folk.
From the SPPA website -
Year Lifetime Allowance (£m)
2011/12 1.8
2012/13 1.5
2013/14 1.5
2014/15 1.25
And BTW there is an Annual Allowance (limit) for contributions to your pension funds. Penalty for exceedance.
And ABTW, if your future FS pension (that you might not live long enough to receive) is deemed to have increased by more than a certain amount (because of a big pay rise for example) you receive on account of it, a whopping additional tax bill on top of your PAYE, to be paid here and now. I have yet to find any specific rules, rates or examples for this tax because the amount depends on your individual contributions and those of your employer, and the tax is personal between you and your employer and HMRC. As a result, one cannot do theoretical calculations as one can with ordinary income tax. In effect, it seems to be a secret known only unto the victims.
The pension rules change with the weather. Just what you don't need for long term planning. It's a nightmare. All the above subject to health warnings. Happy to be corrected.
............... LFH