I had an interesting if not entirely informative discussion with JPAC this afternoon, summarized as follows:
1. The Pensions Tax section at JPAC has been rather busy of late; apparently rather a lot of people are equally baffled by their calculations.
2. Despite acknowledging that both pensions and therefore pensions input values should increase year on year given that pension values are a function of numbers of years served, they couldn't explain why the pension went up over the period in question whilst the pension input values declined the first 3 years of the period. The explanation given was that it was due to CPI being applied at the start of each period. On asking whether a positive rate of CPI should result in a growth rather than decline in pension input values, they couldn't explain it, simply reiterating that it was down to CPI and complex rules. It seems even the Pensions section can't explain the pensions.
3. The sudden spike in pension input value at the end of the period that was responsible for tipping over the annual allowance was allegedly due to my hitting my 16/38 point on the 75 scheme. The move from preserved to immediate pension means the pension value shoots up. Apparently.
They then noted that this criteria was in addition to individuals being promoted or of senior rank being hit through ordinary incremental progression as described in the DIN. If they knew about this, why was it not publicized in the DIN? However, if correct, then I guess there will be a fair few others in the same boat i.e. mid-level sqn ldr who didn't transfer and who reached their IPP before the transition to AFPS 15.
4. I was told this should be a one off as the new scheme was designed to even out accrual rates as well as being less generous, therefore reducing the chance of spikes. Interesting to hear JPAC actually admitting what we all suspected - the new scheme has been deliberately engineered to be less generous.
So that was the official explanation, and if correct, then I suspect there are likely to be a fair few others in receipt of equally baffling letters. I think I'll still be approaching FPS for their perspective!