New outline 2015 Pension

[Downsizer]

So here it is, your initial outline of the new pension.... It's in a pdf at the bottom...

http://www.mod.uk/DefenceInternet/A...ArmedForcesPensionSchemeFinalConsultation.htm

 

[chrislfc2005]

New armed forces pension scheme released

New armed forces pension scheme released

just been reading up on the new afps to be introduced in 2015... what are everyones thoughts, main changes i can see areAverage pension payment not from final salaryNo pensionable lump sum- but can be accrued through commuting final pension paymentsedp changed from 18 to 20 years........

 

[Digzster]

Just read the document and am (for once) considering myself lucky to be an old git!

Glad I did my time when I did and not under this new scheme.

 

[Saracens959]

My maths is a little rusty but if only 4,560ish RAF personnel could be bothered to respond no wonder we look likely to get a rough deal. I would hope that more replies will get added to the comments now to try and improve a bad situation!
How many lazy cnuts are now in crew rooms across the world moaning about this who couldn't be bothered to take part in the first place!!

 

[Turn it off and on again]

Correct me if I'm wrong but for someone on AFPS 75 who joined up at say 18 will still gets the EDP at the same time (at age 40 he will have completed 22 years, 2 years more than needed on the new scheme)? That being said it will comprise of both 75 and '15' calculations?

 

[Downsizer]

Correct me if I'm wrong but for someone on AFPS 75 who joined up at say 18 will still gets the EDP at the same time (at age 40 he will have completed 22 years, 2 years more than needed on the new scheme)? That being said it will comprise of both 75 and '15' calculations?

Yes..........

 

[Downsizer]

I'll be glad when the calculator comes out. I'm a bit fuzzy on what a lot of it actually means.....

 

[busby1971]

Looks like Junior Ranks not reaching the IP will be slightly shafted and then everyone else as well to a lesser extent.

AFPS 05 was a nil cost exercise, this is intended to reduce costs so looks similar to the 05 Scheme with the odd saving through an increase in age at points of entitlements and the move to a CARE acrual. The 12 for 1 ratio for commutation is a little bit pricey but not unreasonable.

A bit misleading when it says we put 1/47th of your salary in your pot, as it's more the add it to your defined benefit. These payments will attract CPI rises which means your accrued pot can rise faster than your wages, ie last years benefits with CPI can exeed this years contribution.

As ever this is still a good pension scheme, just not as good as it was.

 

[needsabiggerfuse]

The Fiddle Factor

Section 2
Outline Scheme Design

Bullet point 5 - Benefits earned under the new scheme while serving will be increased ('revalued') by an average earnings index.

Question 1: Who generates this 'average earnings' figure? The term 'average' should set alarm bells ringing, 'cos therein are lies, damned lies, and statistics.

Question 2: Will it be free from interference by HM Treasury? £ to a pinch of the smelly stuff it won't be if they end up footing a 'larger than they want' increase.

 

[Ex-Splitter and Proud]

The Fiddle Factor

Section 2
Outline Scheme Design

Bullet point 5 - Benefits earned under the new scheme while serving will be increased ('revalued') by an average earnings index.

Question 1: Who generates this 'average earnings' figure? The term 'average' should set alarm bells ringing, 'cos therein are lies, damned lies, and statistics.

Question 2: Will it be free from interference by HM Treasury? £ to a pinch of the smelly stuff it won't be if they end up footing a 'larger than they want' increase.

I think your second question may actually answer your first....... (if you assume the answer to Question 2 is a resounding "Feck off" from ****** Osborne....

 

[Max]

My maths is a little rusty but if only 4,560ish RAF personnel could be bothered to respond no wonder we look likely to get a rough deal. I would hope that more replies will get added to the comments now to try and improve a bad situation!
How many lazy cnuts are now in crew rooms across the world moaning about this who couldn't be bothered to take part in the first place!!

That's right because when you get enough people to fill in all these surveys they always follow what we want.....

Nope they would have changed it regardless the only way we will any sort of response along the lines of what people want would be if everyone were to PVR at the same time leaving the RAF effectively F***ed.

Our pension is still good but I feel that changing the goalposts for those serving is crap. My main concern is that teh pension payments will be a shambles if on 2 different schemes, the only benefits will be to the pension association who will certainly get a years membership from me to explain how'll it all works when I leave.

 

[Assimilation_humiliation]

"I'll be glad when the calculator comes out. I'm a bit fuzzy on what a lot of it actually means....."

Its not really that difficult... its spelt out in black and white in the pdf located by clicking the link above!

I used AFPS 75 and worked out that a OR9 (WO) who was a high flyer left the service after 22 years and received a commutated £62,118 tax free lump sum combined with an annual IP of £11,435 raising to £13,591 plus CPI at age 55.

This compares with the given scenario when just the last 5 years are on the 'New' Scheme of £42,000 tax free lump sum combined with an annual EDP of £12,100 until age 55 when CPI is added and a further increase at 68 - just when you really need the money!

So... if you joined at age 19 then you leave the service in 2020 at the tender age of 41 - by age 55 you seem to have been scammed out of £10,808. But you have also had to contribue tax and NI adding a further £212.80 per year for 14 years which gives a grand total of £13,787.20.

And thats just with the last 5 years on the new scheme. The further past 2015 you stay in the worst the effect is going to be. I feel sorry for the guys who have just or are about to join up as the armed forces do not seem to be valued by the government any more and intelligent hard working people will end up leaving in their droves leaving the sick, lame and lazy to man the fort!

Shame.

 

[Mug?]

I tried

I tried

My maths is a little rusty but if only 4,560ish RAF personnel could be bothered to respond no wonder we look likely to get a rough deal. I would hope that more replies will get added to the comments now to try and improve a bad situation!
How many lazy cnuts are now in crew rooms across the world moaning about this who couldn't be bothered to take part in the first place!!

I went to complete it and it was balls! Questions were weighted and you never got much of a choice.
Think a question was
"WOULD YOU WORK 2 EXTRA YEARS, 3 EXTRA YEARS, 4 EXTRA YEARS" etc and get less.
So low and behold the report now states:-
Service personnel said: 59% of Service personnel said they would be willing to complete 20
years’ service (with a minimum age of 42) to earn an EDP. This reduced to 42% for 21 years’
service (and aged 43), and fell to 32% for 23 years’ service (and aged 45).
There you go 59% of us want to work longer before getting an EDP!
If there was a keep it the same option I am sure we would have gone for that.
What grips my poop is the way it turns it around and we are prepared to work longer. I'm not and am going but there was not this option on the survey.
As I was going I therefore filled it in, online twice? and the paper version as a taxpayer and picked the option I thought would cost me the least in taxes! Sorry for those hanging around but those that seem to be staying are the wasters willing to take the money and not put the effort in.

 

[ivrytwr3]

I'm a bit lost too!

It says your AFPS 75 will be kept ie grandfather rights. So what if your 22 year point is 2016, 2017, 2018 etc, will you still get an IP + lump sum if you left at your 22 year point?

 

[Downsizer]

I'm a bit lost too!

It says your AFPS 75 will be kept ie grandfather rights. So what if your 22 year point is 2016, 2017, 2018 etc, will you still get an IP + lump sum if you left at your 22 year point?

Yes, but only to the value at 2015....so if you joined in 2000 you would get 15 years as an IP under '75.

 

[Max]

They should have left it for those who were already on to 22 or other commitment and made it a part of signing on and for those joining. I can't see the admin side of 2 speerate schemes working smoothly.

Also biggest point is the average which is heavily biased towards pti's for example who will have a much larger career average than someone who joins as an AMM. Join the Forces now?? I feel sorry for those who will feel the full effects I will only lose 2 years.

 

[Assimilation_humiliation]

The Sgt completing 25 years leaving in 2030 'scenario' given compares as follows

10 years on 05, 15 on new scheme £38,000 lump sum with EDP of £6,900


25 years on 75 scheme £48,036 lump sum with IP of £9,499

Total loss by 55 is £30,828 over the first 8 years after leaving the service.


Thats actually a 25% reduction in benefits during the first 8 years after service - disgrace

 

[Gopher]

Looks like my FS and all three of my Sgt's who have all done more than 22 will be putting their notice in. Don't think they will stay around and get shafted with this.

 

[fatalbert]

From reading the news (Daily Telegraph), I get the impression that post-2015 (the proposed new pension rules), a serving member leaving at age 40 or later will ONLY get a lump sum payment (if they have enough qualifying years). The monthly pension will ONLY kick-in at the age 60 point.

Am I wrong?

 

[busby1971]

From reading the news (Daily Telegraph), I get the impression that post-2015 (the proposed new pension rules), a serving member leaving at age 40 or later will ONLY get a lump sum payment (if they have enough qualifying years). The monthly pension will ONLY kick-in at the age 60 point.

Am I wrong?

Very wrong in parts lump sum was always linked to qualifying years, no second lump sum unless you ask for it pension accrual means a higher relative pension if you don't take it, monthly pension (post EDP) paid at 60 although can be claimed earlier at 55 if you reduce your pension. deferred pensions paid from whatever the state pension age is, APPS 75 was 60, 05 was 65, 15 will be at least 68 for those joining today.

Sent from my MZ601 using Tapatalk 2