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-   -   Pension question: lump sum Vs pvr (https://www.pprune.org/military-aviation/625120-pension-question-lump-sum-vs-pvr.html)

PPRuNeUser0211 31st Aug 2019 17:37
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 !

Bob Viking 31st Aug 2019 17:45
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

PPRuNeUser0211 31st Aug 2019 17:56
Cheers,

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

Sloppy Link 31st Aug 2019 19:13
Originally Posted by Bob Viking (Post 10558758)
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
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).

Bob Viking 31st Aug 2019 19:20
Sloppy
 
You are quite correct. I just felt like PBA wasn’t 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 you’ve got it. You never know what’s around the corner!

BV 💀

Melchett01 31st Aug 2019 20:15
Bear in mind under 75 your pension after max commutation gets reset at 55. So if you’re going early then that lump sum might be handy, and as you say, you never know what’s round the corner. And if it resets at 55, there’s no long term impact on your retirement income.

Haraka 1st Sep 2019 08:37
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.

PPRuNeUser0211 1st Sep 2019 15:23
​​​​​
Originally Posted by Haraka (Post 10559119)
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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