AFPS 15 EDP Inverse commutation

[Danny_Dravot]

Simple question, I hope, regarding maximum inverse commutation of AFPS15 EDP

From the ABC pension calculator and within the "commutation" box there is a line entry regarding option to maximum inversely commute AFPS 15 Lump Sum:

Specific line is:

Total increased AFPS 15 EDP income by inverse commutation = £xxxxxx

My question is, is this in addition to the existing AFPS 15 EDP payment, or the amount that that the AFPS payment increases to?

Eg, if AFPS 15 EDP is £14000 but with maximum inverse commutation total Increased EDP is £18000, is that an increase of £4k, or a new total of £32k?

 

[Portree Kid]

At a guess I would say that it would be an increase of £4k and NOT a new total of £32K

As good as AFPS pensions are ( especially AFPS 75 ) they are not that good

 

[Danny_Dravot]

At a guess I would say that it would be an increase of £4k and NOT a new total of £32K

As good as AFPS pensions are ( especially AFPS 75 ) they are not that good

that's what I thought, but it is effectively spreading a AFPS £110k lump sum over 12 years from SPA (67) to aged 55.?

 

[Portree Kid]

that's what I thought, but it is effectively spreading a AFPS £110k lump sum over 12 years from SPA (67) to aged 55.?

£110k / 12 = £9.1k + the original £14k above = £23K

£9k short of the £32k

Who knows

Paging @PensionSociety

 

[FourZeroCharlie]

£110k / 12 = £9.1k + the original £14k above = £23K

£9k short of the £32k

Who knows

Paging @PensionSociety

I think that this @Forces Pension Society is the link that you're looking for.

 

[Forces Pension Society]

The 1:12 was for AFPS 15 generation of a lump sum. The inverse commutation rate for giving up the EDP lump sum will, I am sure, be different. I will check it out with HQ on Monday.

 

[Danny_Dravot]

The 1:12 was for AFPS 15 generation of a lump sum. The inverse commutation rate for giving up the EDP lump sum will, I am sure, be different. I will check it out with HQ on Monday.

TY - my question was more about understanding the online prediction and what the inverse commute amount meant.

 

[Forces Pension Society]

I am not going to guess, Danny_D. Will be back to you as soon as I can.

 

[Forces Pension Society]

Simple question, I hope, regarding maximum inverse commutation of AFPS15 EDP

From the ABC pension calculator and within the "commutation" box there is a line entry regarding option to maximum inversely commute AFPS 15 Lump Sum:

Specific line is:

Total increased AFPS 15 EDP income by inverse commutation = £xxxxxx

My question is, is this in addition to the existing AFPS 15 EDP payment, or the amount that that the AFPS payment increases to?

Eg, if AFPS 15 EDP is £14000 but with maximum inverse commutation total Increased EDP is £18000, is that an increase of £4k, or a new total of £32k?

Just checked with HQ and the £xxxxxx is the new amount rather than the increase to the old amount. Sorry to disappoint. It did read that way from your post but I would not go into print without double checking.

 

[Danny_Dravot]

Just checked with HQ and the £xxxxxx is the new amount rather than the increase to the old amount. Sorry to disappoint. It did read that way from your post but I would not go into print without double checking.

So I guess the question to my future self, is do I stick or twist?

Take an extra c£4k now for 12 years (c£48k*) or gamble on living 12 years and doubling up (c£110k*) for a second tax-free(?) lump sum?

(Exact amounts approximate - I closed the calculator)

 

[Portree Kid]

So I guess the question to my future self, is do I stick or twist?

Take an extra c£4k now for 12 years (c£48k*) or gamble on living 12 years and doubling up (c£110k*) for a second tax-free(?) lump sum?

I think this was the gamble facing us all under AFPS 75 ( I cannot remember the figures, but a large % of Infantry, might have been the wider Army did not reach 55 years old )

There was also the tax implications of taking a bigger lump sum and smaller pension, or taking the larger pension and a smaller lump sum. ( Depending on your plans after leaving )

No one size fits all answer and you can only go with what is best for you at pension claim time.

 

[Danny_Dravot]

I have a few years to think about it...in that time the new pension may be even better!!!

 

[kelvin_273]

I have a few years to think about it...in that time the new pension may be even better!!!

You're not serious surely?

 

[Danny_Dravot]

You're not serious surely?

tongue very much in cheek...a serious question, has any modern pension scheme ever actually achieved betterment for SPs?