Military Pension
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Join Date: Jan 2005
Location: Norfolk
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Military Pension
Does anyone know much about the new Military Pension Scheme (AFPS 05) that is being offered to us all to take over from AFPS 75?
I am aware that some units are now in the process of holding seminars to "entice" us to transfer over to it and that "bumf" is being distributed for us to read.
Any info' from any one??
I am aware that some units are now in the process of holding seminars to "entice" us to transfer over to it and that "bumf" is being distributed for us to read.
Any info' from any one??
Join Date: Jun 2005
Location: Lincolnshire
Age: 47
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Your decision depends on lots of things - commissioned/non-commissioned, 22 year engagement/ 16/38 point departure or serving 'till 55.
I worked out that if I depart at the 16/38 point on the old scheme, I'll earn approx 350,000 between leaving and age 55. However, if I left at the 18/40 point (new scheme departure change) on the new scheme. I would only earn 250,000 between leaving and 55. More confusing still is that if I leave under the new scheme at 55, I'll be over 1,000 a year better off than under the old scheme!
The key thing is, when you get the pack-up, to do your calculations and consider your career (length of and future prospects). It's a gamble, some will benefit and others will "lose" and no-one else can make your decision for you.
I worked out that if I depart at the 16/38 point on the old scheme, I'll earn approx 350,000 between leaving and age 55. However, if I left at the 18/40 point (new scheme departure change) on the new scheme. I would only earn 250,000 between leaving and 55. More confusing still is that if I leave under the new scheme at 55, I'll be over 1,000 a year better off than under the old scheme!
The key thing is, when you get the pack-up, to do your calculations and consider your career (length of and future prospects). It's a gamble, some will benefit and others will "lose" and no-one else can make your decision for you.
Join Date: Sep 2002
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Read the small print very carefully. Page 7 of the AFPS05 (orange) booklet talks about opting out of the scheme.
The last paragraph states that if you opt out (or fail to join it) then you have ONE chance to join later as long as you are still serving and medically fit.
I read that to mean that I don't have to decide in the next three months. So I could stay on AFPS75, which is beneficial up to 16/38, but if I then continue beyond that point, I should be able to transfer to AFPS05 at a later date, when it becomes financially viable further down the line.
Have I read this right or am I being stupid?
Also, if I transfer to AFPS05 now, I extend my commision by 2 years, so i am not disadvantaged. How does this affect my FRI which i will be receiving shortly??
More questions than answers i'm afraid....
The last paragraph states that if you opt out (or fail to join it) then you have ONE chance to join later as long as you are still serving and medically fit.
I read that to mean that I don't have to decide in the next three months. So I could stay on AFPS75, which is beneficial up to 16/38, but if I then continue beyond that point, I should be able to transfer to AFPS05 at a later date, when it becomes financially viable further down the line.
Have I read this right or am I being stupid?
Also, if I transfer to AFPS05 now, I extend my commision by 2 years, so i am not disadvantaged. How does this affect my FRI which i will be receiving shortly??
More questions than answers i'm afraid....
Join Date: Mar 2001
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TO ALL READERS
Although we all have a right to start a new thread about anything we want, may I suggest that we do not create parallel discussions about the new pension.
Obviously, its a very important topic for us all, but the long standing thread, "New Pension Scheme" has covered a lot of ground with some excellent contributions from some very knowledgeable people. Yes, you might have to read through a lot of stuff irrelevant to your circumstance, but please consider that folk such as Ginseng will have already ansered your query at least twice before.
So, please do not take the easy option of creating a new thread to attract an answer to your specific query...its not the easy way for those who repeat the same answers, week in week out, in different threads.
Just a thought.
DPH
Obviously, its a very important topic for us all, but the long standing thread, "New Pension Scheme" has covered a lot of ground with some excellent contributions from some very knowledgeable people. Yes, you might have to read through a lot of stuff irrelevant to your circumstance, but please consider that folk such as Ginseng will have already ansered your query at least twice before.
So, please do not take the easy option of creating a new thread to attract an answer to your specific query...its not the easy way for those who repeat the same answers, week in week out, in different threads.
Just a thought.
DPH
Last edited by DP Harvey; 27th Jul 2005 at 18:16.
