FTRS Abatement, Index Linking and Commutation at 55
Join Date: Aug 2001
Location: United Kingdom
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This all sounds very complicated. If I leave at 55 and then undertake an FTRS contract to age 59, what in simple terms is the effect on both anticipated pension and tax free lump sum?
You can keep your lump sum but your pension will be abated if, when added together with your FTRS wage, you end up earning more than your basic salary in the regulars.
Abatement applies throughout your time in FTRS and will only ne removed when you retire. This post was all about those that have a pension in payment before 55 and how index-linking at 55 will occur and the cessation of commutation repayment.
I hope that helps?
LJ
Abatement applies throughout your time in FTRS and will only ne removed when you retire. This post was all about those that have a pension in payment before 55 and how index-linking at 55 will occur and the cessation of commutation repayment.
I hope that helps?
LJ
Join Date: Apr 2000
Location: Chigley
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This all sounds very complicated. If I leave at 55 and then undertake an FTRS contract to age 59, what in simple terms is the effect on both anticipated pension and tax free lump sum?
You will not lose out. Lets say you leave regular PATOS service at 55 being paid £72k a year and join FTRS as a level 9 Flt Lt on enhanced rate flying pay.
So your pension plus basic pay cannot exceed £72k. ie £46K pay plus an abated £26k pension, plus £16k enhanced flying pay (specialist pay does not count for abatement).
A nice little £88k annual package.
£30 to get a question answered by the FPS is a bit steep!
Unfortunately, having something in writing from SPVA has been worthless in a number of cases recently. A lot of 're-joiners' were given incorrect information about aggregation of separate periods of service under AFPS75 and AFPS05 only to be told later that they could not be aggregated (This has now been reversed). A colleague who left recently, and timed his departure based on an SPVA pension forecast, was then told after leaving that it had all been wrong.
There is a huge amount of uncertainty at the moment as we haven't even seen out the effects of AFP05, and AFPS2015 is about to change it all yet again. No one is old enough yet to have left prior to the 55-point on AFPS05 and see what does or doesn't happen at age 65. FPS have recently had to take on an additional pension secretary because of the amount of work.
Just my take but money well spent for me.
Money wellsaved by me. I could have paid £120 for the 4 years of information that is easily found when you do your own research. Also, the one piece of information that FPS had given out that I read was wrong as it was out of date and they hadn't printed an update in Pathfinder magazine.
The letters I have from SPVA would be very useful to the Pensions Ombudsman if they turn out to be incorrect! So I don't see why they would not be held to account (apart from the pension forecast that comes with a warning that it might be incorrect). However, letters setting out policy are a different matter entirely.
Just my opinion, though, make your own...
LJ
The letters I have from SPVA would be very useful to the Pensions Ombudsman if they turn out to be incorrect! So I don't see why they would not be held to account (apart from the pension forecast that comes with a warning that it might be incorrect). However, letters setting out policy are a different matter entirely.
Just my opinion, though, make your own...
LJ
