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Pension question: lump sum Vs pvr

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Pension question: lump sum Vs pvr

Old 31st Aug 2019, 18:37
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Pension question: lump sum Vs pvr

Hello team,

Quick one as it's a weekend:

PA past my 38/40 points on afps 75/15, signed on until I get carried out in a box.

If I leave on PVR do I get a lump sum? I always thought I did not, but the pension calculator seems to show me getting one?

Thanks !
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Old 31st Aug 2019, 18:45
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Join Date: Jul 2003
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Once you have passed your IPP you will always get a lump sum. Also as long as you have served your 5 year PAS RoS you will get the PAS benefit.

Always take max commutation unless you will be somewhere where you don’t pay any tax for a significant period.

BV
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Old 31st Aug 2019, 18:56
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Cheers,

Wasn't sure if there was a min qualifying period or anything!

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Old 31st Aug 2019, 20:13
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Originally Posted by Bob Viking View Post
Once you have passed your IPP you will always get a lump sum. Also as long as you have served your 5 year PAS RoS you will get the PAS benefit.

Always take max commutation unless you will be somewhere where you donít pay any tax for a significant period.

BV
Not strictly true, there comes a point where the commutation is not advantageous, it is around the 3-4 years to run to full pension (AFPS75 PA).
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Old 31st Aug 2019, 20:20
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Sloppy

You are quite correct. I just felt like PBA wasnít quite there yet.

Having said that, a large lump sum can be very useful instead of the extra income from the exit date to SPA.

Also, spend it while youíve got it. You never know whatís around the corner!

BV 💀
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Old 31st Aug 2019, 21:15
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Bear in mind under 75 your pension after max commutation gets reset at 55. So if youíre going early then that lump sum might be handy, and as you say, you never know whatís round the corner. And if it resets at 55, thereís no long term impact on your retirement income.
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Old 1st Sep 2019, 09:37
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When I amicably PVR'd (therefore continuing my representation of the U.K.on a further promotion in a different arena, which the RAF chose not to accommodate) the lump sum nicely took care of my mortgage debt.
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Old 1st Sep 2019, 16:23
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​​​​​
Originally Posted by Haraka View Post
When I amicably PVR'd (therefore continuing my representation of the U.K.on a further promotion in a different arena, which the RAF chose not to accommodate) the lump sum nicely took care of my mortgage debt.
Sadly, this PVR not so much!
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