50+ PA Spine Early Retirement?

[Specaircrew]

Have any of my fellow old gits recently researched the financial advantages/disadvantages of jumping ship in the last couple of years service? There was some crewroom talk of it being financially advantageous to leave early because of the second gratuity at 65? I am about to research the subject myself so I'd be interested to compare notes with fellow wrinklies!
I thought I could stick it out to 37 years but unfortunately I've reached my tolerance limit so have my eyes on a nice little job at B&Q!;)

[spheroid]

I understand that there is certainly a loophole should you PVR from the PA spine. Have a look at the MOD pension calculator and put in all of your PA spine details but then put in that you are going to leave 12 months early. i.e. at the age of 54 and see what happens....

Couple of snags with the loophole.

1. You have to reach the age of 65.

2. You have to complete the entire 12 months of the PVR. So, if you PVR on your 53rd Birthday then you need to serve until your 54th Birthday and leave then. If however, you put in your letter on your 53rd Birthday and the service then turn around and say...."Thanks very much but we don't want you to stay for the year and you can go now" then the plan falls apart.

Collegues of mine have been looking at this loophole very carefully and as yet noone has had the bottle to exploit it.

[eaw]

Goodmorning all,

As a fellow KOS I did have the guts/stupidity to PVR from the PA spine some 20 months ago at age 51 - it would have been better to stay to age 54 but after 32 years of fast jet flying I could not face a desk or teaching S & L 1!!

My pension figures (I joined at 19) all pointed to this being the best route financially, providing I survived until I was 65. I received my gratuity (3 x final pension) when I left & I get a fixed % of my final pension until age 55 when it becomes index linked (backdated) at 75% of final pension until age 65. I am then due to receive another gratuity (3 x final pension (+ inflation)) and my full index linked pension then kicks in.

My PVR only took 6 months - this is the notice time needed after age 50/30 years service, not one year - and the date I requested for retirement, to ensure that I maximised my pension entitlement (only full years count until age 65 I think) was the date I was given.

If I can be of any further help then please pm me.

[Specaircrew]

Living until 65 is a bit of a gamble, there's an urban myth that MOD statistics suggest you'll only draw your pension for 7 years! I think I'll have to stay a year to amortise my last OCU when I PVR so I could be the first one to try out the 'loophole' if it exists! Plan B is the old underpants on head and pencil up nose trick!

[goneeast]

Ammortise last OCU? No such rule. (as long as you didnt sign to agree to it.) Flt Eng posted to ISK PVR'd on passing OCU, and he was out in 4 months.. Gave them fair warning, but I know its true, cos he's working with me now.

[Specaircrew]

Unfortunately had to sign chit before starting OCU, something about pilots buggering off once they'd got their ATPL :hmm:(not that I need one for B&Q!)

[klubman]

If (as I did) you depart before 55 you are only entitled to a reduced pension until you are 65 but get the full pension thereafter. Calculate the amount of tax you would pay on your pension and balance that against the amount you would gain or lose with two tax free gratuities.

For me it was advantageous to go early. For some of my peers who had been in 'man and boy' it was more advantageous financially to get to 55, get huge tax free gratuity and immediate, full, pension. (I didn't join till I was 24, so the shift of pensionable service to 19 didn't affect me).

The pension calculator is a pretty good guide and, of course, you can try as many variables to maximise your cash (unlike the pension enquiry desk where you are limited in the number of requests you can make)

[wetdreamdriver]

Specaircrew

Suggest you talk to the White Ensign Society (impartial financial advisers)as their advise is to leave within the last 12 months. They also have the guy that helped design the AFPS05 system so if he should know the ins and outs.

WDD

[effortless]

B&Q

Sorry chaps but they are only looking for FJ boys at the mo'.

Can't you just picture them? Arms outstreached, chasing each other up and down the aisles. Such larks, Blue Water 'll be just like dispersal at Colt.

More glue vicar?

[zedder]

A friend of mine (sadly deceased) put an Excel spreadhseet together in the run up to having to decide between AFPS75 and AFPS05.

It is currently set up for a Level 31 PA Sqn Ldr Nav, although you should be able to tweak it to suit your own circumstances. AP3392 Vol 2 Leaflet 2002 Annex B would be the place to look for the figures applicable to you.

Where the spreadsheet is still useful even now is in showing the total you would be paid to age 65 were you to PVR somewhere between age 46 and age 55. It would appear that the 'sweet' spot is to leave when you are 54. Of course, what you have to remember is that were you to leave at age 54 and if you could not earn the same for the next year (ie pension + new salary compared to current salary), then the benefit might well be eroded.

If any one is interested PM me and I'll send you the spreadsheet. This would be on the basis that no financial advice is intended, and that there could be errors in the spreadhseet, especially after you have tried to 'tweak' it for your own circumstances.

One thing it does clearly show is that if you are PA and you will be staying in until at least age 50, you did not make a good decision if you stayed on AFPS75.

[Specaircrew]

I've negotiated a 'no dayglo' agreement with B & Q as I don't suit the roadsweeper look that's favoured by my fellow Sqn members. Not being one of the 'are we allowed to do/say that' generation makes you exempt from 'Elf an Safety' legislation! I'm thinking of swapping the Porsche for a DB9 if I can get it in the garage ;)