Public Sector Pension Ruling and the Armed Forces

[Vauxhall]

I found out this morning that there will be a Treasury announcement about McCloud (so, the planned 'remedy') on 4 February.

 

[StickyFingers]

Think it'll be good news?

 

[Vauxhall]

McCloud Remedy Announced! - Forces Pension Society

Following a consultation period in which two remedial options were considered a decision has been made...

forcespensionsociety.org

 

[Billy Whizz]

McCloud Remedy Announced! - Forces Pension Society

Following a consultation period in which two remedial options were considered a decision has been made...

forcespensionsociety.org

Everyone goes back to legacy scheme (75/05) and can make a choice which one is better by 1 Apr 22. From 1 Apr 22 everyone on 2015 scheme with reserve rights to legacy if you chose to keep that one from 2015 to 2022.

 

[Rugby-Jock-Lad]

Everyone goes back to legacy scheme (75/05) and can make a choice which one is better by 1 Apr 22. From 1 Apr 22 everyone on 2015 scheme with reserve rights to legacy if you chose to keep that one from 2015 to 2022.

Hi Billy.

That your guess as to what will happen or have you seen that somewhere???

Since I am out and taken lump sum etc interesting to see how that affects someone on 75/15?????? Just have to wait out and see what Veteren's have to say followed by AFPS when they get more info from which I am a member!

 

[Billy Whizz]

It's in an IBN - slightly more info than other links with regard to reverting everyone back to legacy then going from there (for those still in)

 

[Rugby-Jock-Lad]

It's in an IBN - slightly more info than other links with regard to reverting everyone back to legacy then going from there (for those still in)

Cheers Billy. No access to that obviously. Much appreciated!!

 

[unruly1986]

Everyone goes back to legacy scheme (75/05) and can make a choice which one is better by 1 Apr 22. From 1 Apr 22 everyone on 2015 scheme with reserve rights to legacy if you chose to keep that one from 2015 to 2022.

The decision as to which scheme will apply 15-22 is taken at the point at which you receive any benefits. I take that as you decide at EDP point or SPA. Quite useful as there may be people to whom the 15 scheme provides more benefit if you stay in longer.

 

[Dan_Brown]

This is a great result and looking forward to the updated calculator.

One query though, we are all still being forced over to AFPS15 in 2022 as this is the last date when anyone will be age discriminated against.

There are oldies who are saying they will still be age discriminated against in Apr 22. Is this correct?

 

[Billy Whizz]

The decision as to which scheme will apply 15-22 is taken at the point at which you receive any benefits. I take that as you decide at EDP point or SPA. Quite useful as there may be people to whom the 15 scheme provides more benefit if you stay in longer.

I think the plan is to show you what each version is worth so an educated decision can be made.

 

[Billy Whizz]

This is a great result and looking forward to the updated calculator.

One query though, we are all still being forced over to AFPS15 in 2022 as this is the last date when anyone will be age discriminated against.

There are oldies who are saying they will still be age discriminated against in Apr 22. Is this correct?

I leave Jan 23 - so 9 months of 15 (pittance in comparison to the 75 I will get for 36 ish years so wont grumble)

 

[4everAD]

The decision as to which scheme will apply 15-22 is taken at the point at which you receive any benefits. I take that as you decide at EDP point or SPA. Quite useful as there may be people to whom the 15 scheme provides more benefit if you stay in longer.

That's certainly the case for me, 25 years on 75 and 10 on the new scheme. No way I'm going back to all 75, I get £8,000 bigger lump sum and my pension at SPA goes up by nearly £5,000 PA.

 

[Billy Whizz]

That's certainly the case for me, 25 years on 75 and 10 on the new scheme. No way I'm going back to all 75, I get £8,000 bigger lump sum and my pension at SPA goes up by nearly £5,000 PA.

Unlike when we had to take the 75/05 decision, I think this time we will have actual facts to make an informed decision - or at least we should have!

 

[4everAD]

Unlike when we had to take the 75/05 decision, I think this time we will have actual facts to make an informed decision - or at least we should have!

Indeed, the decision to go onto 05 was bizarre, sat as a Cpl and the basic question was do you think you'll make FS? Looking back now I would have switched and won big (2 x lump sums) but who knew....?

 

[Billy Whizz]

Indeed, the decision to go onto 05 was bizarre, sat as a Cpl and the basic question was do you think you'll make FS? Looking back now I would have switched and won big (2 x lump sums) but who knew....?

Agree, 48 yrs old and CT/FS was the key and neither seemed likely at the time.......with hindsight, I know which route I'd have gone and would be hitting the ET button to ensure I got the bigger cash payouts that 05 gives if you leave just before 55

 

[rest have risen above me]

For once a pension decision where I think I'll be on a win win. Will hit 37 pension years in March 22, have an extra 2 years where I would have been working without adding to pension. There was no option to join 15 from 75 as was in the protected cohort. Now I can earn a couple of years on 15 as well. Who knows, a retrospective change to 15 might be a better decision.

 

[unruly1986]

This is a great result and looking forward to the updated calculator.

One query though, we are all still being forced over to AFPS15 in 2022 as this is the last date when anyone will be age discriminated against.

There are oldies who are saying they will still be age discriminated against in Apr 22. Is this correct?

Because EVERYBODY is affected together, there is no longer any discrimination.

 

[StickyFingers]

I leave Jan 23 - so 9 months of 15 (pittance in comparison to the 75 I will get for 36 ish years so wont grumble)

Similar to me

I'm gonna use it for a bottle of whiskey or crate of beer every month (Depending on how much it will be) when I get to 15 pension age

 

[unruly1986]

Quick question.

I’m creating a spreadsheet that will help with pension forecasting/financial planning (basically my own version of the AFPS calc), and I’m looking to confirm how the transition from AFPS05 to AFPS15 is worked out. I’m mainly interested in the preserved/deferred pension figures as you can work backwards to figure out the EDP and lump sum from this.

AFPS05 takes your final salary x years served x 1/70.
AFPS15 is average annual salary x 1/47.

Is it as easy as doing the above calculations, then allocating the figures proportionally based upon years served in each scheme? For example, leaving at EDP point with 17 years AFPS05 and 4 years AFPS15 (my calcs if joined in 05 and leaving in 26) I’d split the 2 figures above in a 4:1 ratio (05:15).

Conversely, I want to be able to change the ratio as if I change to AFPS in 2015, not 2022 as per the Mcloud resolution.

Has anybody done this already?

 

[busby1971]

CARE pensions can be a little bit more complicated than that, it's not your average salary, in the wider public sector it's normally about 2% ish of your annual salary each year which then goes in a pot and is then uprated with either an enhancement if you are an active member or a preferred (ie lowest) inflation measure if you are an inactive member. This complicates things because your earlier years could be uprated at a higher rate than your annual salary rises (unless you get increments or such like) and only when you get promoted do you start to accelerate.

I'm sure the FPS will have something for members soon.