An Update on McCloud

There's a fair wedge who were better off on '15, in the same way there's a collection of those better off on '05.
 
While everyone in HMF reverting to AFPS 75 would be good news for the individual, how do you think Defence is going to pay for it? An army of 70k anyone?
defence has ring fenced £2bn already for this
 

Caecilius

LE
Kit Reviewer
Book Reviewer
There's a fair wedge who were better off on '15, in the same way there's a collection of those better off on '05.
I don't doubt there are some who are better off, but who are the main group who see their pensions rise on the 15 scheme? I always assumed the average salary of '15 vs final salary of '05 makes the latter better for the vast majority.
 
I don't doubt there are some who are better off, but who are the main group who see their pensions rise on the 15 scheme? I always assumed the average salary of '15 vs final salary of '05 makes the latter better for the vast majority.
Apparently the PAS RAF types plus others who have a high average salary over the period after '15 started.

There were also some funny situations where if you PVR'd such that your final day was close to your 60th birthday, then you'd get three big lump sums quite close together.

I can't pretend to know the ins and outs, but there are already people complaining that they're going to lose out if they have to go back to a 75 pension.
 

Caecilius

LE
Kit Reviewer
Book Reviewer
Apparently the PAS RAF types plus others who have a high average salary over the period after '15 started.

There were also some funny situations where if you PVR'd such that your final day was close to your 60th birthday, then you'd get three big lump sums quite close together.

I can't pretend to know the ins and outs, but there are already people complaining that they're going to lose out if they have to go back to a 75 pension.
Interesting. Maybe I need to speak to AFPS if they do offer us the chance to switch back.
 
Apparently the PAS RAF types plus others who have a high average salary over the period after '15 started.

There were also some funny situations where if you PVR'd such that your final day was close to your 60th birthday, then you'd get three big lump sums quite close together.

I can't pretend to know the ins and outs, but there are already people complaining that they're going to lose out if they have to go back to a 75 pension.
My layman’s understanding, from the DIN, states: "‘Service Personnel will not see any reduction to the pensions they have earned/built up to date, irrespective of the pension scheme they are in.’, which to me reads like no one will be forced to be worse off.
 
I don't doubt there are some who are better off, but who are the main group who see their pensions rise on the 15 scheme? I always assumed the average salary of '15 vs final salary of '05 makes the latter better for the vast majority.
I thought that '05 was also average salary rather than final salary? I seem to recall the term 'representative salary' being used on the briefings. Mind you it was a while I go now but I do remember thinking at the time 'sod that' and electing to remain on the '75 scheme!
 
I thought that '05 was also average salary rather than final salary? I seem to recall the term 'representative salary' being used on the briefings. Mind you it was a while I go now but I do remember thinking at the time 'sod that' and electing to remain on the '75 scheme!
05 was final salary, 75 was based on representative pay, 15 is career average. 05 was worth changing to if you were garenteed 30 plus years service. I did 38 and my pension is significantly higher than a 75 equivalent.
 

Caecilius

LE
Kit Reviewer
Book Reviewer
I thought that '05 was also average salary rather than final salary? I seem to recall the term 'representative salary' being used on the briefings. Mind you it was a while I go now but I do remember thinking at the time 'sod that' and electing to remain on the '75 scheme!
05 is definitely final salary. Having looked into this briefly last week, on 05 your pension is 1/60th of your final salary for each year you serve plus a lump sum. On 15, you accrue 1/47th of your salary each year.

I haven't done the maths but I suspect those who only do fairly short careers and don't promote much in that time may end up slightly better off on 15, ditto people who stick as a major for their entire career, but it'll be a fairly small group I think.
 
Obviously without specific numbers, can anyone outline the basic differences between finishing next year after 28 years on full 75 pension versus 75/15 split?

any illustrative examples from pay wizards would be great.
 
Do it yourself on the pension calculator.
 
Happy to mate. With dates and ranks since 2015 it doesn’t let you choose 75 only.
Keep your dates the same, But just make sure you are older than 45 on 1 April 2012. This fudge will give you an idea of what the 75 pension will be like; don’t worry about the fact your age is wrong as the prediction is on today’s pay rates anyway
 
ah ok, cool. I’ll give that a try, thanks.
Keep your dates the same, But just make sure you are older than 45 on 1 April 2012. This fudge will give you an idea of what the 75 pension will be like; don’t worry about the fact your age is wrong as the prediction is on today’s pay rates anyway
 
Anyone know how it would work with people that have been medicaly discharged ,I get pension on 75 and got lump sum I also got lump sum from afps 15, would I have option of paying back the lump sum on afps 15 over time period or do you reckon I'd have to pay back afps 15 lump sum in whole before I could go back and have all my service on afps 75.
 
On the pension calculator the results are skewed because if I make myself 45 in 2012 it thinks I’m 55 next year, therefore the pension reduces massively with commutation.
 
On the pension calculator the results are skewed because if I make myself 45 in 2012 it thinks I’m 55 next year, therefore the pension reduces massively with commutation.
Guess we’ll just have to wait until it’s updated. It worked for me cos I was 45 in Oct 12 so I just made myself a year older. It will reduce with commutation as your are borrowing future pension !
 
05 was final salary, 75 was based on representative pay, 15 is career average. 05 was worth changing to if you were garenteed 30 plus years service. I did 38 and my pension is significantly higher than a 75 equivalent.
Agreed,

I'm on 75/15, with 27 years on 75.
I fiddled around with the pension calculator and found that if I had changed to 05 (and have to option to stay all on that) I would be better off than on 75/15 or all on 75. As the chance of changing all to 05 (didn't expect the Army being so daft as to keep me employed all this time!) has long gone, I think that my best bet will be to stay on 75/15.

However this is all with changing dates and my age. My best option is waiting for the MoD to release what they will offer and then asking the AFPS (I'm a member) to what will be my best option.
 

Latest Threads

Top