Effect of rejoining on pension?

[the_worrier]

I retired nearly 4 years ago and elected to take full commutation.
I have joined the FPS to get a steer on likely effects but given the time of year and how busy they say they are it looks like I won’t hear from them any time soon.
My understanding is that I must pay back the commutation gratuity I received, that is the extra tax free lump sum I chose to take. In practice how is this done given that all of my lump sum was paid in to my mortgage so is not retrievable?

 

[Downsizer]

I think a deduction from pay. Thats what an FTRS guy i used to work with told me.

 

[the_worrier]

Hmm. Through commutation my pension was reduced by £2.5K annually ... planned for the near 15 years from the point I retired to my 55th birthday which would be £37,5K I would ‘pay back’ for the extra gratuity I took. As I retired nearly 4 years ago i’m into this ‘repayment’ by £10K. Is this taken off what I must ‘pay back’?

 

[Vauxhall]

I retired nearly 4 years ago and elected to take full commutation.
I have joined the FPS to get a steer on likely effects but given the time of year and how busy they say they are it looks like I won’t hear from them any time soon.
My understanding is that I must pay back the commutation gratuity I received, that is the extra tax free lump sum I chose to take. In practice how is this done given that all of my lump sum was paid in to my mortgage so is not retrievable?

No, you do not pay back the commutation lump sum.

The important thing is to make sure that you have enough pension remaining after abatement to pay back the 'loan' . If you do not, the tax advantages of taking the commutation lump sum disappear.

 

[the_worrier]

So I do or I don’t!?

 

[UlsterExile]

If you are serious at rejoining there are other ways to Join and keep your full pension. Drop me a PM and can give you options, all depends on your trade as well.

 

[Dan_Brown]

If you are serious at rejoining there are other ways to Join and keep your full pension. Drop me a PM and can give you options, all depends on your trade as well.

Why the mystery? Any chance you could either post or drop me a PM too please? I'm interested, but was always put off at the thought of having to pay back lump sum etc.

 

[busby1971]

Could be PTRS with ADC, and you can earn a bonus if you’re lucky.

 

[the_worrier]

If you are serious at rejoining there are other ways to Join and keep your full pension. Drop me a PM and can give you options, all depends on your trade as well.

Pls PM me details.

 

[UlsterExile]

Ok, no mystery on keeping your pension. If you rejoin as a Part Time Volunteer Reserve (PTVR) and do either a UK backfill (empty JPAN wether it be gapped or person is OOA )or an OOA you keep your regular pension and also get a tax free bounty of about £1800 every April. This depends on your trade and rank.

example is a mate of mine who left as a regular Sgt Supplier who now mobilises twice a year and keeps his full 75 pension. When he mobilises he goes on to full terms and conditions as. regular and is entitled to all the benefits in allowance, medicine dental.

Anymore questions pose them here and I will answer as best I can. This only works if you are in a trade and rank that has the empty JPAN's.
Q

 

[the_worrier]

So, had a written response from the FPS....

if I rejoin the regular RAF my pension will be abated as I am receiving an AFPS 75 scheme immediate pension. The extra gratuity I took through commutation must be paid back.

 

[muttywhitedog]

The extra gratuity I took through commutation must be paid back.

So I guess the big question now is "Do you miss it that much"?

 

[the_worrier]

I think I do.

 

[justintime129]

So, had a written response from the FPS....

if I rejoin the regular RAF my pension will be abated as I am receiving an AFPS 75 scheme immediate pension. The extra gratuity I took through commutation must be paid back.

In the majority of public service pension schemes if you are under 60 and get a public service pension you decide to go back to work, you cant receive a full salary and the pension. That's why a lot of people in the NHS go back part time. As long as your pension and part time salary don't exceed the full time salary then you're ok. Anything over gets taken off the pension. You can't earn more than the full time salary. As soon as you're 60 you can work as long as you like and don't lose any pension.

Can't you go back part time

 

[the_worrier]

So, 4 months after re-joining..... I have received a letter outlining that I must pay from salary (after deductions) a monthly charge equivalent to 1/12th of the difference between my original full pension award and the reduced annual amount following commutation. This is nearly £200/month.

 

[vim_fuego]

So, 4 months after re-joining..... I have received a letter outlining that I must pay from salary (after deductions) a monthly charge equivalent to 1/12th of the difference between my original full pension award and the reduced annual amount following commutation. This is nearly £200/month.

How do you feel about that? Are the reasons you went back still outweighing this new burden on your moola?

 

[Barch]

Is it worth going to work after all deductions ?

 

[the_worrier]

To be honest, yes. My salary is really very good in the Military. To equal it in Civvy St I would really have to be doing very well indeed. Plus, this is an organisation I know.