PAS Changes

[Ginseng]

Covec

It probably leaves you smiling all the way to the bank (if you stay in long enough)!

You won't have been transfered to AFPS05 yet though; the transfer date is 6 Apr.

Regards

Ginseng

[covec]

Thanks, Ginseng.

Easy (for me anyway) to lose track of all this...

[LFFC]

You can see why the "wise ones" wanted to institute this policy though - I just don't understand what took them so long to realise that they had a problem.

Imagine an aircrew Flt Lt who is approaching his option point at age 40 having served for 20 years. Suppose he is on the top rate of his pay band and flying pay and that he has opted for the AFPS 05.

If he elects to leave at his option point, he would receive an Early Departure Payment lump sum of about £33.5k and an annual payment of £5.5k until he's 65 years old. He then gets another lump sum of £33.5k and a pension of about £11k.

If he is offered and accepts further service on the PAS, but then leaves after one year on those terms of service, then he would receive an Early Departure Payment lump sum of about £49.5k and an annual payment of £8.5k until he's 65 years old. He then gets another lump sum of £49.5k and a pension of about £16.5k.

That's quite some difference for one years work!

[Ginger Beer]

Spoke to my deskman the other day, as after the recent letter, I thought all was getting sorted ? There is still no policy decision ref when NCA will be boarded for PAS on AFPS 05.

i.e. it has not been decided yet, that if you change to the new pension scheme do you get offered PAS at your 40/18 point or at 22 yrs ?

2 months to April fools day

Ginge

[LFFC]

I understand that it will now become even more commonplace for people approaching their option points to be offered extensions of service (on their current terms) rather than be offered PAS service until age 55. Discuss........

[White Noise]

Originally Posted by White Noise

Might be worth noting that there is a paragraph within the orange pension book we signed for on page 7 para 8 which mentions your choices if you wish not to join and rejoin AFPS05 at a later date you can so as long as you can prove you are medically fit and under age 55.

Although i have not quoted the para exactly as i don't have it on me there are two ways to read this. Firstly that if you wish not to join AFPS05 now and decide to stay on AFPS75 you have one opportunity to join at a later date. which means you could stay on AFPS75 and change to AFPS05 once you have cleared 4 years PAS.
Secondly and the way i believe it is meant to read is that you can "contract out" into a personal scheme (please note that is the legal wording they should have used in that para) and then rejoin only once at a later date.

I have emailed the OTT bunch through handbrake and was forwarded a statement from them that it didn't mean the first option, however they didn't clarify that it was infact meant to mean the second. the statement also mentioned the author of this paragraph should be fired !!

Pretty good document when the agency dealing with it thinks this.

I know of at least one person who made his decision on this paragraph believing the former option!

Does anyone else think that allowing personnel to be able to chose a personal pension and then be allowed to be able to rejoin AFPS05 but not to allow those on AFPS75 the chance to rejoin AFPS05 at a later date discriminatory ??

Personally i have now emailed them through handbrake my thoughts on the above and its implications in my decision making and yet to recieve a reply although they have graced me with an extension until 31 March will the try to dig themselves a bigger hole.

Officially or as officially as it gets, a reply on the above. basically its they are using the wrong wording "opt out", it technically should be "contract out" meaning swapping to a private pension scheme. emails i have recieved actually state that the peson who wrote this paragraph/ page should be "fired". that instills great confidence.