New Or Old Pension Scheme???
Join Date: Jun 2005
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.... don't forget that officers become eligible to attend resettlement courses at the age of 50. Moreover, they only have to give 6 months notice to leave the Service after that age - after resettlement courses and terminal leave, that effectively means that they only have to work for a couple of months before starting a new job.
The intention always was that this allowed people to start job hunting at age 50 and leave whenever the right opportunity raised its head.
The new pension scheme won't actually change that logic. If you've been offered a good job, leaving a few days early and settling for less than 75% of your pension for over 10 years won't be too traumatic - especially as you'll get a second lump sum at age 65.
However, what might change is that it may make people think twice about leaving in their final 5 years just because they are p*ssed off!
So the message is quite clear:
For those on the new pension scheme - if you think that you'll want to leave early - start job hunting and expect to work as a civilian until you're 65. If you think you can take the heat - stay in until 55 ..... and then play golf!
For those on the old pension scheme - golf may be an option even if you leave a couple of years early.
The intention always was that this allowed people to start job hunting at age 50 and leave whenever the right opportunity raised its head.
The new pension scheme won't actually change that logic. If you've been offered a good job, leaving a few days early and settling for less than 75% of your pension for over 10 years won't be too traumatic - especially as you'll get a second lump sum at age 65.
However, what might change is that it may make people think twice about leaving in their final 5 years just because they are p*ssed off!
So the message is quite clear:
For those on the new pension scheme - if you think that you'll want to leave early - start job hunting and expect to work as a civilian until you're 65. If you think you can take the heat - stay in until 55 ..... and then play golf!
For those on the old pension scheme - golf may be an option even if you leave a couple of years early.
Last edited by LFFC; 20th Oct 2005 at 18:50.
Join Date: Jul 2005
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He's not happy with the way that the Government is manipulating the Armed Forces and he, quite understandably, doesn't want to commit himself to age 55 just to get a larger pension while selling his sole
Join Date: Jan 2003
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Southside
Granted, but it isn't our fault that many pension schemes elsewhere are under considerable pressure, although I have the greatest sympathy for those who are affected. The choice we are being asked to make here is whether we want to be in the Armed Forces as a member of AFPS75, or AFPS05. All other considerations are irrelevant, however hard-hearted that may make us feel. There are no prizes for making the wrong choice out of sympathy for others - do what is right for you.
Regards
Ginseng
Regards
Ginseng
The biggest difference is in your Annual sum, have a good look at both options. If you want more money in the early yrs of retirement then AFPS 75 looks the way ahead.
Remember you can commute on the old system but not on the new.
I lose £2000 pa on the new system for 6 yrs then £1000 for the next 15 yrs and only go into the Black at 65.
You can always got professional advice from IFA's
Remember you can commute on the old system but not on the new.
I lose £2000 pa on the new system for 6 yrs then £1000 for the next 15 yrs and only go into the Black at 65.
You can always got professional advice from IFA's
Join Date: Feb 2005
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Just as in previous posts on this subject. There are those who want the best of both i.e. go to new scheme but with no penalty if they decide to leave early. No system is going to give a reward for not staying.
It is an individual decision and can have long reaching consequencies. The main factor seems to be how long you expect to live. As a younger guy I couldn't even think of the day I might be leaving, now it's approaching fast. I still cannot think about reaching 65, 75 or 85. treasury and Government plans and schemes change far too often and I have elected to take the biggest bang for the buck now. It's in my pocket and I can do as I wish with it rather than hoping to have a bigger bank balance some time way down the road - but as I said, it's an individual choice.
It is an individual decision and can have long reaching consequencies. The main factor seems to be how long you expect to live. As a younger guy I couldn't even think of the day I might be leaving, now it's approaching fast. I still cannot think about reaching 65, 75 or 85. treasury and Government plans and schemes change far too often and I have elected to take the biggest bang for the buck now. It's in my pocket and I can do as I wish with it rather than hoping to have a bigger bank balance some time way down the road - but as I said, it's an individual choice.
Join Date: Nov 2001
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DDSD,
I'm in the same boat matey, on the new scheme I am about to reach 1 yr to my new "IPP". So, will the FRI still be applicable ? Dunno, trying to find out.
Also, as I'm within 3 yrs of IPP, in fact 1 yr to go, on the new scheme. Should I be boarded now for PAS ?
It's the same problem, as they are both related to IPP. If the new scheme doesn't relate to those 3 letters we're probably left in the cold ? No real change eh ?
Surely someone from PMA reading this could point us in the right direction, can't get any joy in psf.
Ginge
edited for spooling
I'm in the same boat matey, on the new scheme I am about to reach 1 yr to my new "IPP". So, will the FRI still be applicable ? Dunno, trying to find out.
Also, as I'm within 3 yrs of IPP, in fact 1 yr to go, on the new scheme. Should I be boarded now for PAS ?
It's the same problem, as they are both related to IPP. If the new scheme doesn't relate to those 3 letters we're probably left in the cold ? No real change eh ?
Surely someone from PMA reading this could point us in the right direction, can't get any joy in psf.
Ginge
edited for spooling
Last edited by Ginger Beer; 4th Nov 2005 at 11:58.
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don't worry about the Aircrew FRI, it'll be gone as from 2007
Not a chance. The FRI will be along (in the RN) for a long time. We will be short of aircrew for a long time unless we start a heavy recruitment proceess.
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Yeah but, no but,
as peeps change over to the new pension scheme, should they decide to do so, how is the FRI and boarding for PAS going to be affected ?
Both schemes are in place to retain aircrew to and beyond their IPP. When/if we chop across, the IPP effectively changes and there are some financial effects e.g. FRI amounts (how many years left to IPP) and entry to PAS for us NCA that are affected.
Ginge
as peeps change over to the new pension scheme, should they decide to do so, how is the FRI and boarding for PAS going to be affected ?
Both schemes are in place to retain aircrew to and beyond their IPP. When/if we chop across, the IPP effectively changes and there are some financial effects e.g. FRI amounts (how many years left to IPP) and entry to PAS for us NCA that are affected.
Ginge
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Ginger
Exactly my point.
How are we supposed to make an informed decision when they refuse to answer our questions and won't tell us all the facts.
For someone a year away from IPP and therefore FRI its very frustrating.
Exactly my point.
How are we supposed to make an informed decision when they refuse to answer our questions and won't tell us all the facts.
For someone a year away from IPP and therefore FRI its very frustrating.
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"We will be short of aircrew for a long time unless we start a heavy recruitment proceess."
Southside - I think you need to speak to your poster and ask him how short of aircrew we are at the moment! But I guess you will find out when your tour is up and you want advancement!
Southside - I think you need to speak to your poster and ask him how short of aircrew we are at the moment! But I guess you will find out when your tour is up and you want advancement!
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I do not think that a massive recruitment drive is required.
We do need to recruit. We then need to give our recruits quality instruction and experience. (When I went through training I had about nearly 500 hrs by the time I arrived on an OCU).
Surely it is more cost effective to give a student pilot 10, 20 or even 100 extra hours on a cheap trg ac rather than have to teach and recover basic skill on a frontline ac (which costs approx 5000 pounds an hour to run).
The future? Recruitment? Yes. But right now the frontline Sqns cannot physically accept any rookies. There is just not the flying.
We need to make the job attractive again. Frontline ME pilots getting less than 100 hrs a yr is not helping to retain, let alone build the experience that raw recruits will look up to when they arrive on the frontline Sqns in a couple of years time.
Pensions? LOL. Who cares? If a solution to the problem of ageing ac and quality trg time is not found then there will not be anyone in their right mind staying on beyond 38 and Im sure the PVR trend will only worsen.
Action addressees please take note.
We do need to recruit. We then need to give our recruits quality instruction and experience. (When I went through training I had about nearly 500 hrs by the time I arrived on an OCU).
Surely it is more cost effective to give a student pilot 10, 20 or even 100 extra hours on a cheap trg ac rather than have to teach and recover basic skill on a frontline ac (which costs approx 5000 pounds an hour to run).
The future? Recruitment? Yes. But right now the frontline Sqns cannot physically accept any rookies. There is just not the flying.
We need to make the job attractive again. Frontline ME pilots getting less than 100 hrs a yr is not helping to retain, let alone build the experience that raw recruits will look up to when they arrive on the frontline Sqns in a couple of years time.
Pensions? LOL. Who cares? If a solution to the problem of ageing ac and quality trg time is not found then there will not be anyone in their right mind staying on beyond 38 and Im sure the PVR trend will only worsen.
Action addressees please take note.
Point to consider:
AFPS 75
When you leave at or beyond your IPP you receive an immediate pension .
And hopefully your payments are proctected under pension law.
AFPS 05
When you leave at your Early Departure Point you receive a regular payment that the MOD/government promises to pay you for the better part of up to 25 years 'honest gov we wont change the rules at any time cos you can trust me I'm a politition'. Hopefully when you reach your pension point at 65 the rules will still be the same.
(legal peeps please correct if wrong)
Probably just cynical.
AFPS 75
When you leave at or beyond your IPP you receive an immediate pension .
And hopefully your payments are proctected under pension law. AFPS 05
When you leave at your Early Departure Point you receive a regular payment that the MOD/government promises to pay you for the better part of up to 25 years 'honest gov we wont change the rules at any time cos you can trust me I'm a politition'. Hopefully when you reach your pension point at 65 the rules will still be the same.
(legal peeps please correct if wrong)
Probably just cynical.
With all the meddling with pension legislation Bliar and Grumpy Gordon are currently involved with, it'd be a very brave person indeed who, unless he/she could absolutely guarantee wishing to stay in until 55, would join the new system.
Leave between 40 and 55 and wait until possibly 67 (if that's what is going to be forced upon other public sector workers) for a higher pension - or stay on the AFPS 75 system and have an immediate pension in your 40s to augment a lower paid job but one which gives you a better quality of life?
To cite a typical example, if you are a current SA Flt Lt at the age of 45 with 24 years reckonable service and decide that you're going to leave as you've had enough of sandy places, when would you receive a lump sum and pension:
1. On the 'old' system?
2. On the 'new' system under current proposals?
Perhaps someone could do the sums?
Leave between 40 and 55 and wait until possibly 67 (if that's what is going to be forced upon other public sector workers) for a higher pension - or stay on the AFPS 75 system and have an immediate pension in your 40s to augment a lower paid job but one which gives you a better quality of life?
To cite a typical example, if you are a current SA Flt Lt at the age of 45 with 24 years reckonable service and decide that you're going to leave as you've had enough of sandy places, when would you receive a lump sum and pension:
1. On the 'old' system?
2. On the 'new' system under current proposals?
Perhaps someone could do the sums?