Walking away after 18/19 years

Discussion in 'Army Pay, Claims & JPA' started by PapaGolf, Oct 25, 2011.

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  1. If I sign off now, what would I walk away with. Will I still get some gratuity and immediate pension, or a big **** You pill and nothing until I'm 55?
    I'm on AFPS75 and am due out in Jan 2016 so I'm thinking about jumping ship before the pension changes come in.
    I've got a couple of pokers in the fire, Lateral Transfer being one. If I decide leaving before my 22 is the best career move, would I get anything financially? Without holding my breath for redundancy that is. Cheers
     
  2. IMHO you are better off staying where you are....or maybe waiting to see if you can get redundancy and what generous package you can get. Not sure what changes you speak of, but I doubt they will affect you. I am pretty sure you won't be getting an immediate pension.
     
  3. [TABLE="width: 600, align: center"]
    [TR]
    [TD]Pension Details
    [/TD]
    [TD]AFPS 75
    [/TD]
    [/TR]
    [TR]
    [TD]Preserved Pension at 60
    [/TD]
    [TD]5327
    [/TD]
    [/TR]
    [TR]
    [TD]Terminal Grant at 60
    [/TD]
    [TD]15981
    [/TD]
    [/TR]
    [TR]
    [TD]Pension or Revision at 65
    [/TD]
    [TD]7927
    [/TD]
    [/TR]
    [TR]
    [TD]Terminal Grant at 65
    [/TD]
    [TD]7800
    [/TD]
    [/TR]
    [TR]
    [TD]Resettlement Grant
    [/TD]
    [TD]10038

    [/TD]
    [/TR]
    [/TABLE]
     
  4. Papa Golf,

    Put your own details into the Armed Forces Pension Calculator (google it) and you will probably get the details above (ish), dependant on rank and pay band.

    If you do jump ship early you will get a resettlement grant of £10k.
     
  5. You won't get an immediate pension until you've done 22 years. You will receive a preserved pension which will be paid at age 60 (see below from AFPS) and, for example if you are on 30k a year at the mo, you will receive a pension of a little over £7000 a year if you get out after 18 (at today's rates, any rises will be added when you are 55).
    If you complete your 22, then your pension under the 75 scheme until they change will be unaltered. So, for example, if you have done 20 years when they bring in the new system, your 20 years will be under the old scheme and your last 2 years under the new scheme. Either way, you will not get an immediate pension until you have completed 22 years from the age of 18. If you leave before this you will effectively lose 15 years of pension payments. (Again, on 30k after 22 years you will get almost 9,000 a year until you are aged 55 (no rises until then) and then you get the index linked rises. So getting out a few years early will cost you 135 grand in pension payments. It will vary a little if your last 2 years are under the new scheme. Your gratuity will not be paid until you are 60 (when it will be worth a lot less).
    Preserved Pension

    If you leave the Armed Forces before you can claim an Immediate Pension you can either accept a preserved pension and terminal grant that will normally be paid from the age of 60 (for service prior to 6 April 2006) or 65 (for service after 6 April 2006), or you can choose to transfer the pension rights to a different pension plan.
     
  6. You get your resettlement and that's about it... until you are older.

    Keep an eye out for your trade/rank/service group on the SDSR lists, and volunteer if your slot is in the cross hairs.

    Try the redundancy calculator to work out how much wedge you'd get if you were SDSRd.

    Failing that, if that is all you are leaving for, wait until they declare a date for the pension change, and if it is o be back dated, then pull the pin. They've said 2015 haven't they? Use the time to prepare for exit, keep your arms and head tucked in on landing.
     
  7. ####Mate, its not worth it with 3 or 4 years to go. You'll effectively be losing too much.

    Even if you have the promise of something better.
    The chances are you'll get shit on, thats civvy street for you.
    We're in recession right now & the job front is very dodgy.

    Every person I know that left after 16 years, because they were pissed off.....regrets it now!
    Think again!
     
  8. Think long and hard mate I finished my 22 and thank **** I did my pension is covering my arse now and making life very comfortable for, I work with a few ex-squaddies and they all finished early and mostly regret what they did, stay in mate 3/4 tears might seem a long time but trust me on this one it will fly by.
     
  9. Thanks everyone for the info. I'd heard so many conflicting versions over the last 6 months, this has helped clear it up. I'll see how the ADF thing goes, and the SDR. Like I said before, I've got a few pokers in the fire but I don't want to walk away with **** all, especially after the last 18 odd years.
    The gratuity will clear the rest of my mortgage, and help pay for us (the family) to start again somewhere hot or not England. Thanks again
     
  10. Papa from what was said at the Corps Convention if the pension changes it won't affect anything that you have accrued up to that date.

    You may as well stick it out and see. If they do you change it in 3 years time then you'll only have a year on the new system.
     
  11. Will I still get the commutated lump sum, for the AFPS75 part though? I don't want to be buggering off abroad with a mortgage outstanding. I understand (vaguely) the ins and outs of the new scheme and how it will tie in with the old, its the lump sum I'm not too sure about. Around half of what I should get, pre-changes, will clear the rest of my mortgage and my sitting tenant will be a nice little earner for us, should everything turn shite and we end up on the bones of our arses.
    Before I make any solid decisions as to what I should do next, I'm just making sure that my family and I have a solid fall back plan should it all go wrong. Cheers