View Full Version : Pension?
225Turbo
23rd Jul 2006, 20:30
If someone was to PVR after served 11.5 years whilst on a 22yr engagement, what would happen to the pension? is it transferrable?
dallas
23rd Jul 2006, 20:40
Believe you would get a tax-free lump sum that was the equivalent of 11.5/22nds of the max - possibly rounded down to 11.
As for instant - ie. monthly - pension, you would have to wait until age 55, whereupon I believe you would get the same 11.5/22nds of the going rate, which is index-linked.
The age old gamble is quit early with the potential to earn a real wage outside, no BS etc, versus playing safe, staying in and waiting for what is a very attractive pension in comparison to many other jobs. I opted for the latter, but the days can't go quick enough to 22.
At 11.5 yrs you simply have to ask yourself, can you stomach another 10.5 years of this?
...and in answer to your question:
You can normally transfer the pension to other arms of the military provided you're not in between for too long - think someone wrote 30 days between services in another forum. Otherwise I think the usual suspect careers - police, prison etc - let you carry it over. I'm sure the JPAC helpline will be able to provide assistance...
...by the time you get to 55
225Turbo
23rd Jul 2006, 20:44
Believe you would get a tax-free lump sum that was the equivalent of 11.5/22nds of the max - possibly rounded down to 11.
As for instant - ie. monthly - pension, you would have to wait until age 55, whereupon I believe you would get the same 11.5/22nds of the going rate, which is index-linked.
The age old gamble is quit early with the potential to earn a real wage outside, no BS etc, versus playing safe, staying in and waiting for what is a very attractive pension in comparison to many other jobs. I opted for the latter, but the days can't go quick enough to 22.
At 11.5 yrs you simply have to ask yourself, can you stomach another 10.5 years of this?
no, i cant stomach it. to be honest, i cant stomach another day.
The RAF is a joke nowadays, and its the people at the top who are oblivious to this.
225Turbo
23rd Jul 2006, 20:54
What trade are you 225? Do you know the PVR waiting times for your trade?
6 months PVR waiting time. just waiting for the right time to do it. got to make sure i have everything sorted before i push the button on JPA (which probably wont work)
dallas
23rd Jul 2006, 20:56
Then depending on your rank you'll get a bit of cash to leave with and nowadays you're entitled to resettlement.
As a rough guide the lump sum is 3x what would be your annual pension, which is slightly over 1/3rd of your current salary. SO if you're on, say, 24k, it'll be about 8k p.a. but you'll need to half that having done 11.5/22. So in this example you'd end up with 4-5k and index-linked 8k p.a. from age 55 - maybe 60?
Bottom line is if you're not happy now you may as well go. The pension is nice but not for another 10yrs of misery. In the mean time I suggest you have a think whether your issues can be addressed by a change of location/boss/job etc, or whether that won't make any difference.
225Turbo
23rd Jul 2006, 20:59
What trade are you?
If you leave the Armed Forces to take up new employment where an occupational pension scheme is available, you can transfer your preserved pension benefits from the AFPS into that scheme, provided you do so before the age of 59. Alternatively, you can transfer your preserved pension rights into a personal pension scheme or an approved insurance scheme. Or you can simply leave your preserved benefits in the AFPS until they become payable at the age of 60.
not being funny or anything mate, but I dont want to divulge my trade at the mo. But i stayed on the old pension scheme AFPS 75 . any advice is greatly appreciated though.:)
225Turbo
23rd Jul 2006, 21:01
Are you AFPS 75 or AFPS 05?
AFPS 75 scheme
225Turbo
24th Jul 2006, 18:18
any more advice?:confused:
cooheed
24th Jul 2006, 20:29
any more advice?:confused:
As I believe, all you will get if you serve till the 12 year point is a gratuity of probably about £10 - £15k. You will be entitled to 11.5/37 pension payable at age 55 if you stayed on AFPS 75 if you only do 11.5 but I don't think you'll get a gratuity before 12. The advice I was given by a very knowledgable shiney WO was unless you are staying in till 55, AFPS 75 is by far the best option. Does that make any sense? :confused:
November4
24th Jul 2006, 21:15
Leave at 11.5 years and you miss out on the gratuity that is payable at 12 years.
So for an extra 6 months service you stand to get a few £,000. You will need to check with Admin though for the exact amount.
cooheed
24th Jul 2006, 22:48
Leave at 11.5 years and you miss out on the gratuity that is payable at 12 years.
So for an extra 6 months service you stand to get a few £,000. You will need to check with Admin though for the exact amount.
Thats is the word ;)
Danny_Boy
25th Jul 2006, 08:22
as of 31 Mar 05, the 'Resettlement Grant' for Airman leaving with between 12-22 years' reckonable service was £8687 (officers = £12,709). This is a flat rate and is not affected by rank or length of service (ie 12 years or 21 years - all the same).
dallas
25th Jul 2006, 08:26
as of 31 Mar 05, the 'Resettlement Grant' for Airman leaving with between 12-22 years' reckonable service was £8687 (officers = £12,709). This is a flat rate and is not affected by rank or length of service (ie 12 years or 21 years - all the same).
Which is why you need to speak to the experts and not the armchair experts here. Didn't know about the flat rate Danny - thanks.
JessTheDog
25th Jul 2006, 09:25
I am sure that, under AFPS 75, the preserved pension and lump sum are payed at 60.
Also, the preserved pension age under AFPS 75 is 65 for all service after 6 April 2006 ie. the pension from years of service after 6/4/06 is payable from 65 onwards.
Incidentally, there is a Pensions Calculator:
http://83.138.137.164/pensioncalculator/WizardScreens/WizDisclaimer.aspx
It shows the comparison of AFPS75 and AFPS05. :yuk:
The Gorilla
25th Jul 2006, 11:40
Jess
You are correct, under AFPS 75 preserved pensions are payable at age 60.
TG
Aeronut
25th Jul 2006, 11:48
no, i cant stomach it. to be honest, i cant stomach another day.
The RAF is a joke nowadays, and its the people at the top who are oblivious to this.
Sounds like a subversive to me - have you considered leaving?!
foldingwings
25th Jul 2006, 13:33
Speak to the Forces Pension Society on 0207 820 9988
or go to:
http://www.forpen.co.uk
if you want the official line rather than possibly opinion on here.
They are extremely helpful and knowledgeable (it's their purpose) but you might have to become a member (£20 well spent!).
FW
225Turbo
25th Jul 2006, 16:54
Sounds like a subversive to me - have you considered leaving?!
yep, deffo leaving, just waiting for the right time to do it, as its a 6month PVR waiting time for my trade, and I have a lot of stuff to square away.
but deffo doing it.
225Turbo
25th Jul 2006, 19:10
as of 31 Mar 05, the 'Resettlement Grant' for Airman leaving with between 12-22 years' reckonable service was £8687 (officers = £12,709). This is a flat rate and is not affected by rank or length of service (ie 12 years or 21 years - all the same).
what exactly is a Resettlement Grant ?
johnny99
25th Jul 2006, 19:27
Resettlement Grant:
Applicable to all ranks as shown below in a one-off payment
Applicable to officers and other ranks who give full pay service on the Active List on or after 31st March 2006
This grant is payable only to those who are leaving the service after 9 years service for officers and 12 years for other ranks.
It does not apply to those members of the AFPS who are leaving on immediate pension terms and is not payable in addition to a pensionsource: http://www.army.mod.uk/servingsoldier/condofserv/mm/pensions/ss_cos_mm_pay_pen_intro.html
foldingwings
25th Jul 2006, 21:39
what exactly is a Resettlement Grant ?
You sure you're even serving??????
You really ought to talk to the Forces Pension Society if you are seriously that ignorant of the facts!
FW
Where R We?
25th Jul 2006, 22:27
Resettlement Grant:
Applicable to all ranks as shown below in a one-off payment
Applicable to officers and other ranks who give full pay service on the Active List on or after 31st March 2006
This grant is payable only to those who are leaving the service after 9 years service for officers and 12 years for other ranks.
It does not apply to those members of the AFPS who are leaving on immediate pension terms and is not payable in addition to a pensionsource: http://www.army.mod.uk/servingsoldier/condofserv/mm/pensions/ss_cos_mm_pay_pen_intro.html
So if I were to leave at my 38/16 point I would not be entitled, but if I PVR'd around my 44 point I would, is how I read it.
johnny99
25th Jul 2006, 22:59
So if I were to leave at my 38/16 point I would not be entitled, but if I PVR'd around my 44 point I would, is how I read it.
My understanding: if you receive an immediate pension, you will not be entitled to a resettlement grant as well. The aim of the resettlement grant is to provide financial assistance to those not in receipt of any immediate pension entitlement. Believe this holds good under the new pension scheme as well. As with all things to do with pension entitlements- you are best to consult the experts. Its good practice to get a regular statement (every 2 years or so) of your entitlement from the pension department. They will provide written statements of entitlement based on various scenarios (exit point, pvr, med discharge etc). At best it keeps you informed and, should the future need arise, it provides some documentary evidence if things go awry.
On the pension forecasts . . . . . .
Am I right in thinking that the pension goes up every year ? To clarify, someone leaving this year may be due of a pension of say, £11,000. Someone leaving in 10 years time will get £11,000 + adjusted by inflation over the next 10 years, for arguments sake £13,000 ?
JL3677
26th Jul 2006, 08:11
I thought it was three times your salary and not three times your pension for the lump sum resettlement grant is this true?
Danny_Boy
26th Jul 2006, 08:16
On the pension forecasts . . . . . .
Am I right in thinking that the pension goes up every year ? To clarify, someone leaving this year may be due of a pension of say, £11,000. Someone leaving in 10 years time will get £11,000 + adjusted by inflation over the next 10 years, for arguments sake £13,000 ?
FFP,
Yes the pension rates are adjusted each year due to inflation etc (NOTE - this means the rate for people leaving that financial year. If you are in receipt of a pension it remains exactly the same until age 55, when the index linking is backdated.)
Furthermore, how many years service you have completed is a factor. Someone leaving now (under AFPS75) would get a pension based on, say, 22 years service. If they left in 10 years time their pension would be based on 32 years service (pluss potentailly a higher rank).
Someone leaving on AFPS05 has a pension based on final salary. Notwithstanding inflation, unless a person is on the highest point within thir rank, and does not get promoted in 10 years, their basic salary should go up as well.
So, in essence, do not look at what your pension would be at todays rates, add 10x predicted inflation rates and expect that to be the pension rate for you in 10 years.
Danny_Boy
26th Jul 2006, 08:24
I thought it was three times your salary and not three times your pension for the lump sum resettlement grant is this true?
No, it is 3 times your annual pension.
If you have time - for a pension, I recommend making time - check out the following (all available on DII, I'm not clever enough to post links and/or infuriate home users for whom the links won't work):
AFPS 75: AFPS75, your pension scheme explained; AP3392 vol2 ch20
AFPS 05: AFPS05, your pension scheme explained; JSP764
Thanks DannyBoy, much appreciated !
No, it is 3 times your annual pension.
If you have time - for a pension, I recommend making time - check out the following (all available on DII, I'm not clever enough to post links and/or infuriate home users for whom the links won't work):
AFPS 75: AFPS75, your pension scheme explained; AP3392 vol2 ch20
AFPS 05: AFPS05, your pension scheme explained; JSP764
For them at home:
http://www.mod.uk/DefenceInternet/AboutDefence/Issues/Pensions/AFPS75/ArmedForcesPensionScheme1975afps75.htm
http://www.mod.uk/DefenceInternet/AboutDefence/Issues/Pensions/AFPS05/ArmedForcesPensionScheme2005afps05.htm