New Pension info and a question?

Discussion in 'Armed Forces Pension Scheme' started by old_bloke, Dec 9, 2004.

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  1. The latest copy of the AFF has a good article on the new pension offer.

    Puts it in plain terms however I though the information regarding the "Comprehensive briefings, powerpoint lectures, documentation, books about the changes et all " we have all been having is not quite true!!!!.

    Has anybody had any real briefings? Just its for the new year 2005 and with only 4 months to decide people need to get to hear about it.

    Also . Can anybody put a figure to the increse you get at 55 when your pension become linket to the R.P.I.? How much of an increase is it on say a 500 quid pension.

  2. I've had briefings up to the eyeballs, I have to confess.

    I think there was some suggestion that I ought to be passing the information on to my subordinates. But fcuk it. I have job to do... :twisted:


    P.S. I'm joking. Don't flame me.
  3. I too have had briefings on the new pension scheme, I know which way I will be going.

    As I am not a qualified financial advisor I cannot recommend which pension plan is for you, but I certainly will be staying with the current system.

    With reference to the age of 55 and the index linking of your pension. Your pension will increase/decrease subject to the rate of inflation. So your £500 would be, if the rate of inflation is 2.7%, £513.50.

    Dont forget to tell the AFP people that you have reached 55, or they will not index link your pension.

    Happy retirement. :D
  4. Does anybody have an internet link to the information - being out in the sticks and Retiring soon :twisted: I feel a out of the loop :oops:
  5. If you go to the following link it should give you most of the info. Next year arounf Jul time we should all get a forecast under both schemes and will then need to decide.
    The new pension may in fact be better for some depending on their rank, length of service and future plans.
  6. One point I have discovered - and the source for the info is a very reliable one - is that the new AFP is actually cost-neutral to the MoD.

    I was working on the principle of "it must be cheaper, so I must get less money from the new system", but in fact, as Lost Loggie says, this does not appear to be the case and some people may, indeed, be better off under the new system.

    Unfortunately, as it depends largely on how long one plans on serving and as I have no idea how long I'm going to stay, I'm a bit stuffed. But on the basis of at least saving myself the confusion of learning the new system, I'll probably stick with what I've got.

  7. Thanks very useful - 8O
  8. If you complete a minimum of 16 years from age 21 (officers) or 22 years from age 18 (noncommissioned service), you will be entitled to an immediately payable pension. This pension sum will be fixed until you reach the age of 55. At this point it will be increased to take account of the total rise in the cost of living since your service ended and will continue to increase in line with annual movements in the Retail Price Index. This is known as index-linking and means that your pension keeps its purchasing power over time. You will also receive a one-off tax-free lump sum of 3 times your annual pension.

    Thought it was worth reproducing the above to cover index linking. The £500, 2.7% example is misleading because it is not only the index linking at 55 that matters. It is the index linking in all the years from your retirement to age 55. They are all added to pension and that is what you get at 55.
  9. Look like the civil servants at whitehall, sitting on their backsides on the expensive seats are now also feeling the pinch :lol: but at least one at SW1 can complain or strike :roll:

    Union anger at changes to Whitehall pension plan
    By Andrew Sparrow, Political Correspondent
    (Filed: 08/12/2004)

    Unions reacted angrily last night as the Government announced plans to change the pension arrangements for the 617,000 members of the Civil Service.

    Ruth Kelly, the Cabinet Office minister, said the abolition of the final salary scheme would be "good news" for most employees, particularly the low-paid and those wanting to take career breaks.

    But the Public and Commercial Services Union, which represents a majority of civil servants, said "hundreds of thousands" of its members could lose out.

    It even hinted that the proposals could trigger a strike, although ministers believe that union members will be much happier once they have studied the details.

    Miss Kelly indicated that the main losers would be the most senior civil servants, who can earn more than £100,000 a year. Civil servants currently enjoy taxpayer-funded final salary pensions.

    Under the new proposals, the Civil Service would still run a "defined benefit" scheme, guaranteeing pensioners a particular level of income. Instead of being based on final salary, it would be based on career earnings.

    Miss Kelly said that overall the change would be "cost neutral", but that it would redistribute pension income more fairly. "Someone who is a very high earner will have a very sharp salary increase towards the end of their career, and at the moment they will scoop the pensions pot," said Miss Kelly. But average civil servants were paid just over £17,000. They would get a fairer share.

    The Government has already announced that it wants to raise the Civil Service retirement age to 65 and the Cabinet Office wants the new pension scheme and retirement age to affect entrants from April 2006.

    Staff already in post would be affected from April 2013, although any pension earned before that date would be calculated under the old system.

    Miss Kelly said the new arrangements would be attractive to people with interrupted careers, or those who went part-time towards the end of their careers.

    Miss Kelly said the proposals had not been finalised. But she hinted that they could be a model for pensions reform for some of the other five million people in the public sector.

    Mark Serwotka, the head of the PCS union, said: "The radical move away from a final salary scheme allied with the pension age rise will only create uncertainty. Our immediate fear is that hundreds of thousands of people could lose out."

    A PCS spokesman said: "At this stage we cannot rule strike action in or out."

    In a separate development, the Cabinet Office yesterday announced plans to reduce the average 10-day level of annual sick leave in the Civil Service. One proposal was for employees who fall sick unexpectedly to have to call into the office every day to explain their absence.
  10. The main changes for Officers is that the new scheme offers no immediate pension for those who bang out at 37 (the current earliest departure point), but the trade off is that if you stay until 55 you will get a little more % of final salary which under current pension rules is %48.5.

    It is only worth switching as an officer if you are going to do the full stretch otherwise sticking with the old scheme means you will have an instant pension whenever you decide to go as long as you do 16 yrs beyond age 21.

    Anyway, back to the war.
  11. Would you mind leaving the Sin of Onan out of these discussions. I also resent the implication that those of us aged over thirty are prone to premature ejaculation.