Ok, being a sad git with a spare 20 minutes I have just done a quick spreadsheet analysis between old and new to try and put this to bed. Assumptions are that the individual joins at 21 on a SSC, goes FJ and takes just over 4 years to get there (there are 185 weeks of IOT, EFT, FJLIN, BFJT, AJT and OCU alone let alone leave and other courses). For both RRP methods the rank structure stays the same - normally Fg Off for 2.5yrs and thence on Flt Lt.
On either system both start on £30,923 per annum as Fg Off going up to Flt Lt at £39,629 after 3 yrs from IOT. Not bad for the average graduate.
On the old RRP scheme they would start RRP on completion of the OCU on lower rate of £5,339 per annum. This then rises every 4 years to £9,066, £14,417 and £16,972. If the individual leaves at their SSC 12 yr option they would have got a total of £57,620 of RRP during their time. If they stay to AFPS15 40/18 EDP they would get a total of £166,204 during their time. Obviously either example can then leave with an Early Departure Payment (EDP) or if not a Sqn Ldr apply for assimilation to PAS.
Under the new scheme the pilot would not get RRP until ~2 years later than under the old RRP scheme. They would then get £4,000 per annum, about £1,300 less than the old scheme, until approximately their 11th year of service. However, at that point, they would then get a rise to £13,249 per annum of RRP; which is ~£4,000 more than the old RRP scheme. If they choose to elave at the 12 yr SSC point they would have got £33,249 of RRP during their time. HOWEVER, also at this point between year 11 and 12 they would get the £70k which 'bonds' them in for a further 6 years which takes them to their 40/18 EDP point. If they choose to retire at this point they will have had £156,397 of RRP plus a £70,000 FRI - that is ~£60,000 more than the previous RRP scheme.
Originally, I opined that this scheme would better target the EDP point, but now I can see the logic behind these new measures. It says in the AFPRB that the OF-3/4/5 cadre is in manning balance; which it is more or less. However, in the next 5-10 years there are an awful lot of Nav/WSOs coming up for retirement so I think a FRI at the EDP will also be needed if we want this to remain in balance.
Oh, and for those that transition to the new RRP scheme they will also be "Quids In" as previously stated. I make it about £2k on average when you translate from the old rates to the new Tier 2 rates.
So overall, this is SOMETHING TO BE HAPPY ABOUT FOR ONCE!!!
Headline figures:
Newbie £60k better off until 40/18
Transitional Arrangement person ~£2k per year better off
LJ