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£20k (pre-tax) for 5-yr ROS?

Can anyone explain the logic in that?
How would that make any difference to anyone? That doesn't even amount to the pension that most in this bracket will take for less than 2 years, let-alone 5.
And not a sniff for current PAS...a lot now eagerly awaiting their 5-yr points, methinks.

Wait, hang on, are you telling me someone actually fell for it and took a PAS offer years before they reached 38/16? Committed to 5 years more service with no pay benefits for years and no pension benefits for 5 years beyond 38/16? Oh you poor naive little dears. And now you've missed an FRI. You'd have been better off getting promoted

CM

Why only 25 years? I base all my comparative calculations on living to the age of 85 (optimistic perhaps!). PVR will induce a short term dip but you will still be much better off in the long run.

BV

Remember it's only abated for so long. It will jump back up again. The new calculator is a bit unwieldy in my experience but if you can understand it correctly and enter all the right dates correctly it should show that it's all ok. The graph is very useful.
BV

Quote:

Originally Posted by Uncle Ginsters (Post 9380518)

Yes Minister - Episode 84

Sir Humphrey of the Treasury: "Is this about Trident again?"
Jim Hacker MP: "Not this time Humphrey. Can we have £150k tax free to keep our very valuable pilots beyond 38?"
Treasury: "Not a chance. You can have £20k."
Jim Hacker MP: "Tax-free?"
Treasury: "It's income, it'll be taxed"
Jim Hacker MP: "But that means you'll get half of it back!?"
Treasury: "Yes Minister..."
Treasury: "What exactly are we getting for our money?"
Jim Hacker MP: "5yrs of loyalty"
Treasury: "But we've already got 5yrs out of all of those current Professional Aviators. You're definitely not going to give it to them are you?"
Jim Hacker MP: "Well, we wouldn't want them to feel like they missed out"
Treasury: "They didn't miss out. They're on a very attractive scheme..."
Treasury: "Only give it to those who are almost definitely out of the door. We can't afford to give it to those who are already staying - unless you'd prefer to just give everyone a fiver instead?"
Jim Hacker MP: "Haven't you just given the junior doctors 11%?"
Treasury: "Ahhh but they're worth it! Do you want the cash or not?"
Jim Hacker MP: "Alright."
Treasury: "Thank you Minister. That'll be all"

:p

Quote:

Originally Posted by CharlieMike (Post 9381293)

I've just run the pension calculator twice - once for leaving at IPP and once for leaving after having accepted a PAS offer and leaving after a 5 year RoS. Can't work out why, but assuming max commutation, my immediate pension would decrease by about £2000. Assuming 25 years of pension, this significantly wipes out the bounty and the slight increase to lump sum.

Maybe I'm doing something wrong and I'm happy to be corrected, but taking the PAS offer seems to mean I lose money when I include the pension effects. :sad:

Have you put leaving on PVR terms at the end of your 5 year ROS? That would make you lose a lot from your 75 scheme pot. Don't you get an option (non-PVR) at that 5 year point? If not I'm very sad for those that bit.

Has anyone else worked what what inverse commutation means yet by the way?!

BV

That's an easy one. It means trading off your annual pension against a the lump sum (bigger pension vs smaller lump sum in this case). I seem to recall you are better off tax wise with max commutation rather than inverse.