Deferred Pension

[P-T-Gamekeeper]

If you are leaving the RAF, with a pension deferred to 55, can you take the pension as a lump sum instead, to put into an occupational pension scheme?

[Elmlea]

On AFPS75, there's something about resettlement commutation. You can take a proportion of your deferred pension as a lump sum at 38; along with your normal terminal grant, and your £12k resettlement grant. You can't commutate all of your final pension, so you still end up with something like 2/3rds of your final pension rate at 55 if you take the maximum commutation.

I could be wrong, I still have 12 years until my IPP

[Yellow Sun]

If you are leaving the RAF, with a pension deferred to 55, can you take the pension as a lump sum instead, to put into an occupational pension scheme?

Interesting question P-TG. Certainly if you were a civilian you could ask for a transfer value and then decide whether you wished to transfer your "pot" to a fund run by your new employer. However I should think very carefully about what you might get from the "deferred pension" payable at 55 and what sum you would have to amass in the interim to generate similar benefit. Although I am not aware of your particular circumstances, I would guess that you might well be better leaving your stake in the AFPS where it is, the indexing attached to it is a very expensive item on its own. Tread carefully and make sure that you have all the information before you make any decisions.

YS