New Pension Calculator
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Hot off the presses; the triple lock might still have a pulse, but its getting fainter by the day and won't last beyond the next election - certainly not so, given Harriet Harman and Ed Balls' comments the other day. I'm only surprised that I'm surprised. This of course, will have an impact on military pensions in payment and in anticipation of payment.
Steve Webb warns UK pension rises are at risk | News | Pensions Insight
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Steve Webb warns UK pension rises are at risk | News | Pensions Insight
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NEM Briefs start tomorrow....as of last friday the scripts still weren't finalised....I suspect they've been busy today! It seems that the 'NEM Hierarchy' are currently wondering how they are going to spin the briefings to hide the fact that we are all to be shafted in the very near future. 
Join Date: Jun 2004
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So here is something that I hadn't really thought about until I had a play with the calculator after someone mentioned revised TOS possibly taking you to age 60. I am on AFPS75 and within my last 10 years of service, so anticipate leaving in 2017 without being affected by any of the 2015 pension stuff. But if I did serve longer (purely hypothetically as even hanging in there until 55 is looking like a bit of a struggle) I will have hit 34 years service and the pension stops increasing year on year under the terms of AFPS75. Is this what happens to people currently who are extended? I understand that the AFPRB annual pay rates are reduced by an amount that equates to a personal pension contribution....so I would in effect be making pension contributions for no return, while also working for half pay as I could leave at any point and generate a pension that paid half my salary. Is this correct or have I missed something. If it is, why would anyone do that?
Fin, you are correct that service beyond 34 years for AFPS75 offers little reward beyond the salary. The recognition of the pension in our pay calculations is a bit of a red herring.
AFPS05 is better in this regard, as is AFPS15. Otherwise FTRS may be the best option for service beyond 55 for those with an AFPS75 background.
AFPS05 is better in this regard, as is AFPS15. Otherwise FTRS may be the best option for service beyond 55 for those with an AFPS75 background.
NEM Briefs start tomorrow....as of last friday the scripts still weren't finalised....I suspect they've been busy today! It seems that the 'NEM Hierarchy' are currently wondering how they are going to spin the briefings to hide the fact that we are all to be shafted in the very near future. 
Any idea where or when? Nothing heard at my location....
Join Date: Jul 2007
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Anyone within 10 years of their normal retirement date wef 1 April 2012 will not be transferred to '15. But if service continues until aged 60, how do you compensate the older service men/woman for the (in effect) loss of pension accrual who may currently still have up to 15 years in '75 to serve out?
In the new scheme, the maximum accrual cap is abolished to allow accrual for the duration of paid service, so if you hit 34 years in '75 by 2015 (assuming you're over aged 46 now), can you buy Added Years (somehow) or for '15 I wonder? No tables as yet, although reference is made to 'actuarially fair' computations. HMRC guidelines would still apply, but there may be scope.. otherwise, would there be a pay adjustment to compensate for the discrepancy or will it be a case of "c'est la vie"?
In the new scheme, the maximum accrual cap is abolished to allow accrual for the duration of paid service, so if you hit 34 years in '75 by 2015 (assuming you're over aged 46 now), can you buy Added Years (somehow) or for '15 I wonder? No tables as yet, although reference is made to 'actuarially fair' computations. HMRC guidelines would still apply, but there may be scope.. otherwise, would there be a pay adjustment to compensate for the discrepancy or will it be a case of "c'est la vie"?
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Al R, That was my thought - although well aware how good my pension deal is compared to many, it does make me wonder if they have thought this through. Presumably if they want to offer some folk service to 60, they are hoping some will take it...at the moment though it doesn't seem to offer much in the way of an incentive pension wise
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Maybe they'll be hoping that a Wing Commander or MACR won't be focusing too heavily on the pension benefits; that they'll be basking in the autumnal glow of 5 more years top notch salary and (potentially) a further decent CARE accrual rate - especially if they joined late. It does create a potential sticky wicket though - do you open up a new career stream; one that accepts the sacrifice of further AFPS accrual for the extra years? Who might the idea appeal to? How about someone who was made the subject of a pension sharing order in his/her 40s and who might look on the new potential career extension as the ideal opportunity to regenerate a fresh, independently worthwhile retirement fund.
But if accrual is uncapped for '15; surely, there must be grounds for a crewroom (at least!) judicial review if there is a compulsion on that person who has to remain on '75 and who is discriminated against by being unable to grow those benefits. AFPS Trustee/HMRC guidance prevents Added Years bolt ons after aged 46 or worthwhile additional contributions, so what to do? Maybe simply allow scheme transfer if it proves to be in the scheme member's interests - we always assume that movement won't be - but it might be.
But if accrual is uncapped for '15; surely, there must be grounds for a crewroom (at least!) judicial review if there is a compulsion on that person who has to remain on '75 and who is discriminated against by being unable to grow those benefits. AFPS Trustee/HMRC guidance prevents Added Years bolt ons after aged 46 or worthwhile additional contributions, so what to do? Maybe simply allow scheme transfer if it proves to be in the scheme member's interests - we always assume that movement won't be - but it might be.
It seems that the 'NEM Hierarchy' are currently wondering how they are going to spin the briefings to hide the fact that we are all to be shafted in the very near future.
Or is there something else I might have missed? Not being in a light blue environment for the best part of 4 years, I'm definitely not up to speed and I didn't even know the NEM briefings were being rolled out this week.
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NEM consultation launched today in MOD followed by DIB and IBN. Roadshow briefs commence from around early July. Consultation activity in and around 4 or 5 key RAF locations, ie Lincolnshire, Oxfordshire etc consultation through July, bit of August and into September.
From what I understand this is a proper consultation exercise with a civ contractor brought into facilitate discussions. Fair amount of money has probably been spent on it from what I gather.
Also understand that key decisions haven't been made yet so feedback from us is vital. More flexibility to this over and above the pensions one as it isn't cross departmental.
Time to get involved!
From what I understand this is a proper consultation exercise with a civ contractor brought into facilitate discussions. Fair amount of money has probably been spent on it from what I gather.
Also understand that key decisions haven't been made yet so feedback from us is vital. More flexibility to this over and above the pensions one as it isn't cross departmental.
Time to get involved!
Join Date: Jul 2013
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Pension Payments
1. I am 55, I left the service in 1987, am I entitled to a pension now?
2. Where can I locate the online calculator?
3. I now live in Peru, last month however, I lived in Barcelona, Spain. The relevant authorities do not want to communicate with me anymore via email, and insist that I telephone them, with what I´ve read so far, these guys are not the most efficient, can anyone suggest a good approach?
4. A separate matter than the subject heading, it involves the non payment of a sign-up bonus (I originally signed for 3 years, but terminated my service after 11 years (+8 years)). I didn´t receive the incentive, and they cannot prove or disprove it either way, because they had paper records back then - not computers!
2. Where can I locate the online calculator?
3. I now live in Peru, last month however, I lived in Barcelona, Spain. The relevant authorities do not want to communicate with me anymore via email, and insist that I telephone them, with what I´ve read so far, these guys are not the most efficient, can anyone suggest a good approach?
4. A separate matter than the subject heading, it involves the non payment of a sign-up bonus (I originally signed for 3 years, but terminated my service after 11 years (+8 years)). I didn´t receive the incentive, and they cannot prove or disprove it either way, because they had paper records back then - not computers!
Join Date: Apr 2008
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disappointed, to say the least
I am 33, and intend to take my option and leave at 38 under AFPS 75.
Thanks to the new pension, my commuted lump sum is about £10k less, and I will receive about £2k pa less on my immediate pension. I won't qualify for any EDP.
Adding up all the numbers between age 38 and age 70, I have calculated that I will receive £70k less in that period.
What annoys me is that this is, essentially, welshing on the contract I entered into with the RAF when I joined in 2001. My side of the contract remains unaltered, though.
Having recently accepted a new post, I am on a 3 year RoS, so I can't even vote with my feet. In fact, there's nothing stopping the RAF from deciding not to pay me anything for the next few years - and there is nothing I can do about it.
Anyone on a RoS in 2015 is being entered into a new contract without consultation. In the civilian world, a change to employment contract would involve terminating the old contract and all parties signing a new one.
My point: if you are going to move the goal posts, allow me the option of leaving. It seems morally bankrupt to adjust one side of the contract (pay) without concession to the other. The moral thing to do here would be the same as AFPS05 - put all new recruits on it and give people the option to switch to it.
The push/pull factors are changing all the time.
Thanks to the new pension, my commuted lump sum is about £10k less, and I will receive about £2k pa less on my immediate pension. I won't qualify for any EDP.
Adding up all the numbers between age 38 and age 70, I have calculated that I will receive £70k less in that period.
What annoys me is that this is, essentially, welshing on the contract I entered into with the RAF when I joined in 2001. My side of the contract remains unaltered, though.
Having recently accepted a new post, I am on a 3 year RoS, so I can't even vote with my feet. In fact, there's nothing stopping the RAF from deciding not to pay me anything for the next few years - and there is nothing I can do about it.
Anyone on a RoS in 2015 is being entered into a new contract without consultation. In the civilian world, a change to employment contract would involve terminating the old contract and all parties signing a new one.
My point: if you are going to move the goal posts, allow me the option of leaving. It seems morally bankrupt to adjust one side of the contract (pay) without concession to the other. The moral thing to do here would be the same as AFPS05 - put all new recruits on it and give people the option to switch to it.
The push/pull factors are changing all the time.
Add me to that list, I'm in almost exactly the same situation. I still have the pam-air leaflet the RAF gave me when I joined up explaining the pension I would get.
Yes I know that FAFPS is still a good pension. But we have all worked hard for the entitlement they said we would get and now they are changing the conditions with many locked into a ROS that doesn't give them the option to just 'walk'. For me the precedent has been set now and nothing is sacred, leaving me worrying about what they will change next. Leaving seems to make the most sense, I know life is probably going to be harder on the other side of the fence, but at least my family can settle down, my children can attend the same school for more than 3 years, my wife can find employment and I can start claiming child benefit again! In fact, on two meagre wages we will probably be better off anyway.
That the government claims AFPS75/05 is unaffordable with one breath and then decides to award MP's a large pay rise when we are meant to 'all be in it together' makes the pill that much more difficult to swallow.
Yes I know that FAFPS is still a good pension. But we have all worked hard for the entitlement they said we would get and now they are changing the conditions with many locked into a ROS that doesn't give them the option to just 'walk'. For me the precedent has been set now and nothing is sacred, leaving me worrying about what they will change next. Leaving seems to make the most sense, I know life is probably going to be harder on the other side of the fence, but at least my family can settle down, my children can attend the same school for more than 3 years, my wife can find employment and I can start claiming child benefit again! In fact, on two meagre wages we will probably be better off anyway.
That the government claims AFPS75/05 is unaffordable with one breath and then decides to award MP's a large pay rise when we are meant to 'all be in it together' makes the pill that much more difficult to swallow.
I do not trust that the lump sum payments will remain tax-free either. Such a change could come after the pension is changed and, it will not be a change of pension but a change of taxation!
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I second what Monkfish is saying.
When I signed the contract all those years ago, I was under the impression that I work for the RAF for 22 years (most of my life given to the raf) and in return they give me the pension they said they would.
I'm angered that after all them years, they can change the pension goalposts and give me less than what I signed up for.
Did someone day there's a retention problem? I wonder why?
When I signed the contract all those years ago, I was under the impression that I work for the RAF for 22 years (most of my life given to the raf) and in return they give me the pension they said they would.
I'm angered that after all them years, they can change the pension goalposts and give me less than what I signed up for.
Did someone day there's a retention problem? I wonder why?
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We look at this from the modern perspective of low income tax - who remembers the days of Income Tax being 35%+? We have come to the end of a 30 year period of low income tax and great benefits - that policy wasn’t sustainable. What do you do, pre-load the pain or tack it on at the end or both - and let’s face it; who knows what rate income tax is going to be in 5 years, let alone 25 years?