- 16-08-2012, 16:37 #1
Representative Rate of Pay - can anyone shed some light???
I am on AFPS 75
I have attempted some calculations in order to work out how my AFPS 75 portion of pension will be effected after the 75/15 switchover. My 16 year point is just after the proposed change over.
I was not aware of the representative rate of pay (RRP) before this digging exercise but from the link below was informed that my Immediate Pension (IP) is calculated as 28.5% of the RRP (link to FAQ below).
Looking at the numbers kicked out by the calculator (as below) I attempted to work out what RRP would be:
Your Service Details AFPS 75
Start of Reckonable Service 04/09/1999
End of Reckonable Service 04/09/2015
Leaving NATO Rank OF 3
Reckonable service length 16 years and 1 days
Retirement age 38
Final Pensionable salary £53,661
Pension Details AFPS 75
Immediate Pension £13,318
Terminal Grant £39,954 (3 x IP)
RRP = ((IPx100)/28.5)
Somewhat different to my final salary of £53661. I thought that there may be a difference but a difference just shy of £7000 is a little steep, especially when the L1 salary for a Major is £47760!
It also does not figure on the 2011/12 or 2012/13 RRP as published on the MOD website...
I would be most grateful if someone could shed some light on how this all works. I would like to ascertain how badly I am going to be shafted by the new pension scheme and whether that shafting is going to get progressively worse the longer I stay past my AFPS75 IP point.
This may allow me to provide some comment on the new AFPS outline scheme design document which at present makes little sense to me!
Many t(h)anks in advance!
TankieTrack up to the world, arse to the enemy...not a good place to be!
- 16-08-2012, 17:31 #2
Can't help you as a Rupert, but for OR's, the RRP screws over those on higher bands of pay. In the old days, taking juniors bands, band 1 was basic jobs, e.g. infantry rifleman, band 2 was a higher level, eg electrician, and band 3 was highly skilled jobs, eg technicians, pilots etc. However, the RRP was based on band 1, so those on bands 2 and 3 got a less-than-representative pension. You could make AVCs to compensate, but when I enquired of the RAO, this was "too expensive" ie too much work for him.
Perhaps something similar is happening for you, although I thought all officers of equivalent rank and seniority got the same pay. Do you have any specialist quals that might increase your pay, eg parachute, flying pay etc?
Irrespective of your pension, unless you're shooting for 55, leave as soon as you can after your IP point. You are accruing age and not experience by this stage. With 16 years in, you must have quite a few as a major, but whether you have three years or twenty as a major, you will be entering the workforce at that level, ie middle management, unless you have directly transferable specialist knowledge/skills.
"Action this day"
- 16-08-2012, 17:37 #3
- Join Date
- Nov 2007
- Westpoint likes this.
I swear to Baby Jebus I will smash the fuck out of one you one day.
Do you ever listen to anything? We are not fucking experts. We just try to help.
I saw my own arrse again there didn't I?
- 16-08-2012, 17:53 #4
A Combat HR Specialist is not an expert? What's the specialism in then?
Reminds me of when I was trying to sort out my own pension, after realising like the OP, that it was going to be "less than representative". This was in the days before the SPVA. I called the Army Pensions Enquiry Office in Glasgow. On hearing I was a serving soldier trying to figure out my financial future, I was given the immortal line "This office is not staffed to deal with enquiries". Only the MOD could come up with an Enquiry Office that is not staffed to deal with enquiries.
"Action this day"
- 16-08-2012, 18:48 #5
- 16-08-2012, 19:18 #6
- Join Date
- Jan 2004
- 17-08-2012, 08:02 #7
- 17-08-2012, 08:06 #8
- Join Date
- Sep 2004
- 17-08-2012, 09:17 #9
SPVA work out one 'spot rate' for each rank based on the rates of pay contained in the Pay Letter. This 'spot rate' is then used to calculate the pension code for each rank so that, as one of the other contributors has pointed out, everyone leaving in the same rank, in the same year, with the same length of service gets the same pension. This is for AFPS 75 only.
I am sure that SPVA would give you the formula if you asked them.The Forces Pension Society - Fighting for the forces and their Families
- 17-08-2012, 11:15 #10
Pension codes can be seen by following the link:
Ministry of Defence | About Defence | What we do | Personnel | Armed Forces Pensions Compensation and Veterans | Armed Forces Pension Scheme 1975 (AFPS 75)SSAFA Bereaved Families Support Group member.
A support group for families of members of the armed forces who have died in service whatever the circumstances.
Remember The Love, Share The Heartache, Honour The Fallen However They Fell.