NEM Alignment
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I think one can only apply for protection if one's pension pot is already in excess of a new, lower, limit. If it accrues to more than the limit after its introduction then c'est la vie.
i.e. if your pension pot is >£1.0M and <1.25M when the £1.0 million cap comes in to place then you can protect it. If it's £999,999.99p at the time of the new limit, and still accruing, then you're 'stuffed'.
If it continues to accrue then of course your pension will still increase, but anything in excess of the limit will be (heavily) taxed.
i.e. if your pension pot is >£1.0M and <1.25M when the £1.0 million cap comes in to place then you can protect it. If it's £999,999.99p at the time of the new limit, and still accruing, then you're 'stuffed'.
If it continues to accrue then of course your pension will still increase, but anything in excess of the limit will be (heavily) taxed.
Last edited by Willard Whyte; 31st Mar 2015 at 12:08.
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There are two types of protection, fixed and individual. I wouldn't apply too soon, in 2008/10 (I forget) it was raised to £1.8 million. Applying for, and receiving the incorrect type of protection might well limit your options in future. I think that it's something that you have to be acutely aware of, especially if you get out at an option point with an IP, and have a further full career infront of you.
If it appears that you're imminently about to breach it, or you will have, then HMT/HMRC will promulgate the new series in due course and in plenty of time for savers to make an informed decision. If you have already breached the £1.25m limit, you are going to be limited with your options. But if you have a glittering second career infront of you (Consultants stepping into the NHS for instance) it's still well worth reviewing.
Someone asked me about the Annual Allowance. It has remained the same, but HMT has form. The way that it is revalued and therefore calculated can quite easily change (currently, a multiple of sixteen is used). That will mean many more can breach it even though the headline figure remains a constant. Ref Forces Pension Society, yes, absolutely it's a good thing to consider (I first joined it 15+ years ago when I realised I was about to get screwed).
If you are worried about breaching the LTA post mil, go onto LinkedIn and ask anyone if they have negotiated alternative remuneration. Out of interest, I posted this earlier if you want to monitor the thread.
uk.linkedin.com/in/alastairrush
If it appears that you're imminently about to breach it, or you will have, then HMT/HMRC will promulgate the new series in due course and in plenty of time for savers to make an informed decision. If you have already breached the £1.25m limit, you are going to be limited with your options. But if you have a glittering second career infront of you (Consultants stepping into the NHS for instance) it's still well worth reviewing.
Someone asked me about the Annual Allowance. It has remained the same, but HMT has form. The way that it is revalued and therefore calculated can quite easily change (currently, a multiple of sixteen is used). That will mean many more can breach it even though the headline figure remains a constant. Ref Forces Pension Society, yes, absolutely it's a good thing to consider (I first joined it 15+ years ago when I realised I was about to get screwed).
If you are worried about breaching the LTA post mil, go onto LinkedIn and ask anyone if they have negotiated alternative remuneration. Out of interest, I posted this earlier if you want to monitor the thread.
Remuneration in lieu of employer pension contributions.
The reduced Lifetime Allowance (LTA) for pension savings will surely impact many reading this. Some of you will also exceed the LTA once you leave the military for a second career even if you don't breach it before, via AFPS.
Has anyone got any practical experience of negotiating separate remuneration terms in lieu of pension payments that you could share with us? The LTA of course, could also increase in the future; recently, it was *raised* to £1,800,000.
The reduced Lifetime Allowance (LTA) for pension savings will surely impact many reading this. Some of you will also exceed the LTA once you leave the military for a second career even if you don't breach it before, via AFPS.
Has anyone got any practical experience of negotiating separate remuneration terms in lieu of pension payments that you could share with us? The LTA of course, could also increase in the future; recently, it was *raised* to £1,800,000.
Join Date: Apr 2008
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JTO,
I think so, particularly as a forces pension is non-contributory. Where it might make sense to reduce one's pension contributions is with a post-mil career voluntary contribution scheme, if the total of both (or more) pension schemes edges towards whatever LTA is in place.
At the moment I can see no advantage in leaving the scheme at any point as I presume I would be still accruing benefit, even if some of my pension income is taxed at 55%?
Meanwhile - back to NEM and the offer of extension to the age of 60. What is the scuttlebutt on how many took the offer? Was there a flood or a trickle at a base near you?
Similarly, how many applied for PAS a few weeks ago?
Just interested
Similarly, how many applied for PAS a few weeks ago?
Just interested
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The counter argument to signing on is, leave at 55, you will probably live longer. You won't be effectively working for 1/2 salary and you get your gratuity to invest. Oh, and you get to watch the train wreck. If you want to work after 55 you can find a firm that gives a toss about its people.
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Would I do 5 more years?
For only 10k on the lump sum and 3k on the pension - I think not!
Mostly because the pension freezes after 3 years (40years max on AFPS 05)
No, Even if this last tour turns out to be fantastic, I'm offski for sure at 55, or maybe 54.5.
For only 10k on the lump sum and 3k on the pension - I think not!
Mostly because the pension freezes after 3 years (40years max on AFPS 05)
No, Even if this last tour turns out to be fantastic, I'm offski for sure at 55, or maybe 54.5.
Originally Posted by MechGov
The counter argument to signing on is, leave at 55, you will probably live longer. You won't be effectively working for 1/2 salary and you get your gratuity to invest. Oh, and you get to watch the train wreck. If you want to work after 55 you can find a firm that gives a toss about its people.
For me, it will provide continued income at a time when I can finally enjoy it without giving most of it to the kids, and whilst increasing my pension. It also means I can see what the train wreck actually means for my particular part of the air force and if I don't like it, I can leave within 6 months. I can also leave (PVR) and join the Reserves without having to give back any money, unlike currently.
I don't see a down side for my particular circumstances.
I'm struggling to find any employer who would give me enough money at my age to top up to what I'm currently getting. Plus the stress of learning a new job and actually having to work for a living.......hmmmmmm.
Each to their own.
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Quote:
"I can also leave (PVR) and join the Reserves without having to give back any money, unlike currently."
If you take up an FTRS or ADC job, there could be abatement of pension. If you join PTVR, you would really have to put some hours in to see your pension abated. Your pension lump sum is safe whatever you do.
"I can also leave (PVR) and join the Reserves without having to give back any money, unlike currently."
If you take up an FTRS or ADC job, there could be abatement of pension. If you join PTVR, you would really have to put some hours in to see your pension abated. Your pension lump sum is safe whatever you do.
Seems like a mixed bag then. Apart from Camelspyder, I know of at least 2 other 50 somethings who are not accepting the offer. Their reasons are that they have both had enough and are just going through the motions till 55. There are no enjoyable staff jobs out there - just hard work and long hours. As for flying, it's just non stop ops and time away from home. Very few people seem to get away on sexy exercises with good deals attached anymore.
It's a matter of perspective. Many of those still serving just see a continuation of what they know, the safe option, a good salary (most don't appreciate how little money they are actually working for - see post 5 on this thread) and don't believe their skills are appropriate outside for them to find gainful employment.
The vast majority of those who have left can't see the problem, don't look back, have a better life out than in, and are amazed in hindsight that they were at all reluctant to leave in the first place.
Those that have left the military, especially if its recently, can still remember their thoughts, feelings, concerns about leaving, and so can appreciate the position/dilemma of those still serving. By contrast those still serving can't really appreciate what it's like to be actually be out, as they have no experience of it.
At least that's my perspective....
The vast majority of those who have left can't see the problem, don't look back, have a better life out than in, and are amazed in hindsight that they were at all reluctant to leave in the first place.
Those that have left the military, especially if its recently, can still remember their thoughts, feelings, concerns about leaving, and so can appreciate the position/dilemma of those still serving. By contrast those still serving can't really appreciate what it's like to be actually be out, as they have no experience of it.
At least that's my perspective....
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I have turned it down... Logic as follows:
1. Minimal addition to pension. It freezes for me at age 58 (40 yrs AFPS 05).
2. Limited number of attractive jobs left... Esp as I will effectively be working for half pay.
3. I have to leave eventually, why not make a start at the rest of my life?
4. 37 years is enough in anyone's money!
5. No guarantee after SDSR15 that there will be jobs for old farts to 60 anyway.
With less than two years to go it is a bit scary but I am already getting enough of a picture of what lies beyond to look forward to it.
1. Minimal addition to pension. It freezes for me at age 58 (40 yrs AFPS 05).
2. Limited number of attractive jobs left... Esp as I will effectively be working for half pay.
3. I have to leave eventually, why not make a start at the rest of my life?
4. 37 years is enough in anyone's money!
5. No guarantee after SDSR15 that there will be jobs for old farts to 60 anyway.
With less than two years to go it is a bit scary but I am already getting enough of a picture of what lies beyond to look forward to it.
You could say it's working for half a salary, or you could say it's actually having to work (for once) for what probably is half of the salary you used to earn.
We're all in different positions. I'm not in a staff job and can anticipate continuing flying until I am 60 and without going on ops.
I've met plenty of folk who have left the military and have prospered and are happy. Equally, I have met many who either regret leaving or who have come back in one form or another.
The thing is we're all different and we're in in our own situations. One person's decision is not necessarily going to be right for another. What I am shocked at is the lack of information that we are able to base these decisions on. I've read the DINs. There is still a lack of detail and there is no-one you can talk to who knows.
How on earth can they expect us to make informed decisions?
We're all in different positions. I'm not in a staff job and can anticipate continuing flying until I am 60 and without going on ops.
I've met plenty of folk who have left the military and have prospered and are happy. Equally, I have met many who either regret leaving or who have come back in one form or another.
The thing is we're all different and we're in in our own situations. One person's decision is not necessarily going to be right for another. What I am shocked at is the lack of information that we are able to base these decisions on. I've read the DINs. There is still a lack of detail and there is no-one you can talk to who knows.
How on earth can they expect us to make informed decisions?
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I can't say I understand all this modern jargon, so this is probably most unhelpful, but . . . .
In 1958 our lords and masters decreed that there were too many aircrew in the RAF and in common with many others I was informed that as of 31st December 1958 I was discharged 'Due to the contraction of the Service . . .' So the axe fell and there were several ex-WWII SNCO pilots sent on their way, at least one of my acquaintance in tears at the news.
So, when the RAF comes down to one squadron of pointy jets and one of drone controllers, what is to stop the same thing happening again?
Anyway, good luck and may your service and life be long and profitable.
In 1958 our lords and masters decreed that there were too many aircrew in the RAF and in common with many others I was informed that as of 31st December 1958 I was discharged 'Due to the contraction of the Service . . .' So the axe fell and there were several ex-WWII SNCO pilots sent on their way, at least one of my acquaintance in tears at the news.
So, when the RAF comes down to one squadron of pointy jets and one of drone controllers, what is to stop the same thing happening again?
Anyway, good luck and may your service and life be long and profitable.
JAJ
Yes, you are right. However, at 55 it is a very good time to re-align your life and start de-institutionalising(?) yourself, if you can. Also, it is not half pay...I get 70% of my net (full-time) pay retired (net). I would be working full-time for 30% when you allow tax and NI etc
OAP
Yes, you are right. However, at 55 it is a very good time to re-align your life and start de-institutionalising(?) yourself, if you can. Also, it is not half pay...I get 70% of my net (full-time) pay retired (net). I would be working full-time for 30% when you allow tax and NI etc
OAP
OAP - then you are very lucky and I wish you well.
I'm not sure there's a post-RAF job out there I want to do that would pay that much. For me, I'd be happier continuing flying, preferably part-time and do some volunteering in my spare time - stress & pressure-free.
Each to their own.
I'm not sure there's a post-RAF job out there I want to do that would pay that much. For me, I'd be happier continuing flying, preferably part-time and do some volunteering in my spare time - stress & pressure-free.
Each to their own.
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I haven't received a letter for service to 60 yet....should I have? 
PAS Sqn Ldr, FG(P). If I do serve to 60, the LTA calc, based on the pensions calculator, has me pretty much on the limit!
PAS Sqn Ldr, FG(P). If I do serve to 60, the LTA calc, based on the pensions calculator, has me pretty much on the limit!