NEM Alignment
Originally Posted by Backwards PLT
...run it through the pension calculator choosing the "not PVR" option.
JAJ
Are you on AFPS05 going to AFPS15? If so the calculator doesn't have a PVR option. Not my area of expertise, but are PVR rates for EDP the same as leaving at an option point - hence no option box?
Try running it with AFPS75/15 and you'll see the option.
LJ
Are you on AFPS05 going to AFPS15? If so the calculator doesn't have a PVR option. Not my area of expertise, but are PVR rates for EDP the same as leaving at an option point - hence no option box?
Try running it with AFPS75/15 and you'll see the option.
LJ
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Just for clarity, AFPS 05 does not differentiate between PVR and compulsory discharge. The only time there is an enhancement is when there is a Tier 2 or 3 medical discharge.
The difference between AFPS 75 PVR and Compulsory rates erodes over time and, after 28/29 yrs service, the differential has disappeared.
The difference between AFPS 75 PVR and Compulsory rates erodes over time and, after 28/29 yrs service, the differential has disappeared.
Voxpop
Thanks for explaining that. That now explains why JAJ doesn't have an option to select as there is no difference in pension between PVR'g and leaving at an option point where an EDP is payable.
Not being on AFPS05 then another bit of my knowledge is now complete as a line manager!
LJ
Thanks for explaining that. That now explains why JAJ doesn't have an option to select as there is no difference in pension between PVR'g and leaving at an option point where an EDP is payable.
Not being on AFPS05 then another bit of my knowledge is now complete as a line manager!
LJ
Just for clarity, AFPS 05 does not differentiate between PVR and compulsory discharge. The only time there is an enhancement is when there is a Tier 2 or 3 medical discharge.
The difference between AFPS 75 PVR and Compulsory rates erodes over time and, after 28/29 yrs service, the differential has disappeared.
The difference between AFPS 75 PVR and Compulsory rates erodes over time and, after 28/29 yrs service, the differential has disappeared.
Are you able to clarify what happens to PVR rates once some of us move from AFPS75 to AFPS15?
We have been told that a PVR at any point in the future whilst on AFPS15 terms will still be classed as a PVR from the '75 scheme, so the pension and gratuity will be abated.
Clearly we feel this is unfair but it is not clear how the abatement is calculated. As you would expect, we feel that it would be fairer not to suffer PVR abatement on the AFPS75 terms if I have never actually PVR'd whilst part of that scheme.
The published tables between PVR and Compulsory rates use Reckonable Service rather than years of service; ie mirroring the old pension rules which for officers ignores service before age 21.
The question this raises is that in Apr service on '75 will cease, as will our ability to accrue additional years to reduce the PVR abatement. As such is it correct I will be locked in forever to the PVR rates at the end of FY14/15 even if I PVR in 10 years time with (by that stage) 35 years of actual service?
...Mr Osborne will launch an "unexpected raid" on high earner's pension pots.
It says the lifetime allowance will fall to £1m from the existing £1.25m.
It says the lifetime allowance will fall to £1m from the existing £1.25m.
It is uncomfortably close to flt lt & sqn ldr PAS pensions and I guess it will hit more senior personnel quite hard.
With the NEM (MEOS 60) offer on the table, I did a recalc of my LTA and as a PA Flt Lt, at 60yo, I will be £10k short of the £1m and that's on today's figures. 
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And, interestingly, the one time only offer from DIB 58/13 to extend to 20/40 for those slightly younger has been reintroduced in IBN 15/15; wonder what the uptake will be from this re-attack?
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Indeed, a done deal it seems. Currently, at a LTA of £1.25 million, active members of most defined benefit or final salary schemes will be affected if their income at retirement exceeds £62,500 (the deemed value of a DB scheme is 20 x the pension).
However, members of public sector schemes such as AFPS will currently be affected if their projected pension exceeds £54,347 net of gratuity (20 x the pension PLUS the tax free cash of 3 x the pension). If the LTA reduces to £1 million of course, so too, does the threshold. Pension protection can either be Fixed, or Individual. If you're getting a new job post military, and if you think you're going to breach the LTA then negotiate a different remuneration to a pension.
Funnily enough, I saw a client this morning , and we're diverting pension savings away from 'his' personal pension in anticipation of a breach, and squirreling more into 'hers'. He's the major bread winner. The new upper class, it seems, is the middle manager and consequently, pension apartheid gathers pace, if ever there was declared intent to do away with the public sector pension need we require more evidence?
It isn't what you make, it's what you keep -
https://www.moneyadviceservice.org.u...ension-savings
http://www.hmrc.gov.uk/pensionschemes/ip14online.htm
However, members of public sector schemes such as AFPS will currently be affected if their projected pension exceeds £54,347 net of gratuity (20 x the pension PLUS the tax free cash of 3 x the pension). If the LTA reduces to £1 million of course, so too, does the threshold. Pension protection can either be Fixed, or Individual. If you're getting a new job post military, and if you think you're going to breach the LTA then negotiate a different remuneration to a pension.
Funnily enough, I saw a client this morning , and we're diverting pension savings away from 'his' personal pension in anticipation of a breach, and squirreling more into 'hers'. He's the major bread winner. The new upper class, it seems, is the middle manager and consequently, pension apartheid gathers pace, if ever there was declared intent to do away with the public sector pension need we require more evidence?
It isn't what you make, it's what you keep -
https://www.moneyadviceservice.org.u...ension-savings
http://www.hmrc.gov.uk/pensionschemes/ip14online.htm
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Sorry for the delaying in responding to the point about how the PVR table is used - but I hope the following is useful.
Let's say you have 18 yrs on AFPS 75 and another 8 on AFPS 15, at which point you are PVRing. Your AFPS 75 benefits will be calculated on your rank for pension and using the Pension Code table in operation at the time you leave.
They will look at the 26 yr PVR rate and your pension will be based on 18/26ths of that rate. So, effectively, you are building up time against the 'break even' point where Compulsory and PVR tables merge.
Let's say you have 18 yrs on AFPS 75 and another 8 on AFPS 15, at which point you are PVRing. Your AFPS 75 benefits will be calculated on your rank for pension and using the Pension Code table in operation at the time you leave.
They will look at the 26 yr PVR rate and your pension will be based on 18/26ths of that rate. So, effectively, you are building up time against the 'break even' point where Compulsory and PVR tables merge.
Quote Al R... "It isn't what you make, it's what you keep -"
Quite so Sir and, I would also venture.."it's what you get to enjoy". At age 60, 5 years is likely 30% of your active life remaining, you probably reached the 40% tax threshold on your pension at age 55 anyway and, the Gov.UK will most certainly have means-tested the state-pension etc!
Also, PAS Flt Lt/Sqn Ldr will probably be working at the sharp(dangerous)-end, till the end!
Don't trust me though, take professional advice!
OAP
Quite so Sir and, I would also venture.."it's what you get to enjoy". At age 60, 5 years is likely 30% of your active life remaining, you probably reached the 40% tax threshold on your pension at age 55 anyway and, the Gov.UK will most certainly have means-tested the state-pension etc!
Also, PAS Flt Lt/Sqn Ldr will probably be working at the sharp(dangerous)-end, till the end!
Don't trust me though, take professional advice!
OAP
According to a recent briefing, insurers claim officers' average lifespan was >84 yrs, and that was 8 yrs ago. Could easily be 90 now so well worth upping the pension a little if yr able!
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Just another Jocky,
I think what you were trying to say is that comparative mortality illustrations for officers predict 88% for S1NXA, and the same for other ranks runs at 118% of S1NXA?
Apologies, but I've been wading through the latest long term actuarial assumptions of AFPS, post April 2015. I'm afraid the government's conclusion is we're all going to die. Doomed I tell you.
There are some interesting predictions about the converging growth rates of pay between officers and ORs too.
I think what you were trying to say is that comparative mortality illustrations for officers predict 88% for S1NXA, and the same for other ranks runs at 118% of S1NXA?
Apologies, but I've been wading through the latest long term actuarial assumptions of AFPS, post April 2015. I'm afraid the government's conclusion is we're all going to die. Doomed I tell you.
There are some interesting predictions about the converging growth rates of pay between officers and ORs too.