Re-joiners be aware
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Re-joiners be aware
Gents and ladies
Anyone who re-joins the service after completing a pensionable engagement and took resettlement commutation will have to pay it back ( RC). The amount recovered per month is the difference between the full pension you would have received and the reduced pension after commutation untill age 55. In my case, that equates to 160 pound a month over the term of my new service (16 yrs). Even though I am not drawing a pension. Now depending on how long you are signed on for or at what age you re-engaged dictates how much you pay. In my case it equates to 30000 ish !! To put that into context, that means for not drawing a pension for 16 years you will forfeit 224000 in pension payments and pay 30k for the privilege.
This has been challenged twice now and dismissed by SPVA. As stated in their response, this reduction in pay ceases and pension restored if I leave.
Oh ! and by the way it took them 2 years to notify me and for a year, reduced my pay by 500 a month to recover missed payments.
Food for thought?
Anyone who re-joins the service after completing a pensionable engagement and took resettlement commutation will have to pay it back ( RC). The amount recovered per month is the difference between the full pension you would have received and the reduced pension after commutation untill age 55. In my case, that equates to 160 pound a month over the term of my new service (16 yrs). Even though I am not drawing a pension. Now depending on how long you are signed on for or at what age you re-engaged dictates how much you pay. In my case it equates to 30000 ish !! To put that into context, that means for not drawing a pension for 16 years you will forfeit 224000 in pension payments and pay 30k for the privilege.
This has been challenged twice now and dismissed by SPVA. As stated in their response, this reduction in pay ceases and pension restored if I leave.
Oh ! and by the way it took them 2 years to notify me and for a year, reduced my pay by 500 a month to recover missed payments.
Food for thought?
Last edited by Bannock; 13th Dec 2019 at 14:13.
* Been taken for a ride?
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Gents and ladies
Anyone who re-joins the service after completing a pensionable engagement and took resettlement commutation will have to pay it back ( RC). The amount recovered per month is the difference between the full pension you would have received and the reduced pension after commutation untill age 55. In my case, that equates to 160 pound a month over the term of my new service (16 yrs). Even though I am not drawing a pension. Now depending on how long you are signed on for or at what age you re-engaged dictates how much you pay. In my case it equates to 30000 ish !! To put that into context, that means for not drawing a pension for 16 years you will forfeit 224000 in pension payments and pay 30k for the privilege.
This has been challenged twice now and dismissed by SPVA. As stated in their response, this reduction in pay ceases and pension restored if I leave.
Oh ! and by the way it took them 2 years to notify me and for a year, reduced my pay by 500 a month to recover missed payments.
Food for thought?
Anyone who re-joins the service after completing a pensionable engagement and took resettlement commutation will have to pay it back ( RC). The amount recovered per month is the difference between the full pension you would have received and the reduced pension after commutation untill age 55. In my case, that equates to 160 pound a month over the term of my new service (16 yrs). Even though I am not drawing a pension. Now depending on how long you are signed on for or at what age you re-engaged dictates how much you pay. In my case it equates to 30000 ish !! To put that into context, that means for not drawing a pension for 16 years you will forfeit 224000 in pension payments and pay 30k for the privilege.
This has been challenged twice now and dismissed by SPVA. As stated in their response, this reduction in pay ceases and pension restored if I leave.
Oh ! and by the way it took them 2 years to notify me and for a year, reduced my pay by 500 a month to recover missed payments.
Food for thought?
Avoid imitations
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The main reason I decided not to take up the RAF's offer to rejoin at the age of 42 was the negative effect it would have had on my pension, which i was advised would be "abated". Especially as it had been my decision to leave aged 38 in the first place.
Errr, I don’t think you understand what Commutation is! This sees a reduction of monthly pension until age 55 to pay it back - regardless of whether you re-join, go FTRS/ADC or do something else. The thing that is affecting you as a rejoiner is the abatement rules, which is the same for all public sector pensions. It’s a HM Treasury rule. Also, for those on AFPS05, that rejoin regular or FTRS/ADC, then abatement is 100% of the EDP (ie. you get no payments until you retire again).
So as JTO points out - make sure you read up on this or speak to people like the Forces Pension Society if you can’t be bothered to read it for yourself. https://www.gov.uk/guidance/pensions...n-for-veterans
So as JTO points out - make sure you read up on this or speak to people like the Forces Pension Society if you can’t be bothered to read it for yourself. https://www.gov.uk/guidance/pensions...n-for-veterans
Rejoin? Who would do that?! The idealism and goodwill of my youth was spent long ago during Telic.
I have been out 4 years now and the grass is 100% greener. Why would I risk my decent pension for a reduced Service offering on a super-MOB?
If the RAF of the 80s-90s was brought back then I would consider it for 5 mins....
I have been out 4 years now and the grass is 100% greener. Why would I risk my decent pension for a reduced Service offering on a super-MOB?
If the RAF of the 80s-90s was brought back then I would consider it for 5 mins....
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Rejoin? Who would do that?! The idealism and goodwill of my youth was spent long ago during Telic.
I have been out 4 years now and the grass is 100% greener. Why would I risk my decent pension for a reduced Service offering on a super-MOB?
If the RAF of the 80s-90s was brought back then I would consider it for 5 mins....
I have been out 4 years now and the grass is 100% greener. Why would I risk my decent pension for a reduced Service offering on a super-MOB?
If the RAF of the 80s-90s was brought back then I would consider it for 5 mins....
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Service men and women can be curious beasts when it comes to matters of money. Despite being generally smart and aware, some (by no means all) can be over-confident about financial affairs, whilst being blindly unaware of very important issues. Why anybody would make a major lifestyle choice (like rejoining) without being 100% fully briefed on all the implications for one's personal wealth and income is beyond my ken...yet it happens. Go figure 
So much this...
...with the rider..."from a qualified and regulated source."
So much this...
The message is, as it has always been, get proper pension advice and fully understand your pension before you consider a major career decision.
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How much are they offering when you rejoin?
(a) If your pay when you left (adjusted for CPI) is more than your new rate of pay PLUS your uncommuted pension value then there will be abatement so that your pension is reduced so you don’t get paid more.
(b) If you commuted some then you will pay ALL the commuted value back - because you’ve borrowed some of your future pension at a monthly rate. Even if the delta in (a) is less than 5k (11-6 in my example)
Advice : Don’t rejoin as PAS, as Fg Pay is not Pay in the calculation. Then once your back in, apply for PAS.
Its pretty simple really. Abatement is assessed on rejoining OR promotion only. So rejoining is not a career push. ie consider carefully any promotion offer!
How much are they offering when you rejoin?
(a) If your pay when you left (adjusted for CPI) is more than your new rate of pay PLUS your uncommuted pension value then there will be abatement so that your pension is reduced so you don’t get paid more.
(b) If you commuted some then you will pay ALL the commuted value back - because you’ve borrowed some of your future pension at a monthly rate. Even if the delta in (a) is less than 5k (11-6 in my example)
Advice : Don’t rejoin as PAS, as Fg Pay is not Pay in the calculation. Then once your back in, apply for PAS.
Alfred, your pension is 100% abated and you get paid the full amount of pay (even if it’s more than you earned before). The whole rationale for abating pension by the Treasury is so they don’t pay you more for doing the job at the same rank, or lower. However, if you are promoted to a higher rank they are content to pay you at that rank.
Alfred, your pension is 100% abated and you get paid the full amount of pay (even if it’s more than you earned before). The whole rationale for abating pension by the Treasury is so they don’t pay you more for doing the job at the same rank, or lower. However, if you are promoted to a higher rank they are content to pay you at that rank.
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I think there may be some confusion with FTRS and Rejoin here.
If in receipt of a pension it is stopped on rejoining - simple. There is then a repayment due IF resettlement commuation was taken (APFS75 stuff) because you are not resettling - the MOD has given you your old job back.
FTRS pay is capped at the level that you left at - you cannot earn more than on the last day of service.
If in receipt of a pension then that is used to make up your salary and the MOD tops up to the level that you left - ie you are paying yourself.
Can't see the attraction.
Who wins? Senior officers that take on the responsbility of a junior.
Creating a load of clockwatchers and contract readers...Discuss.
If in receipt of a pension it is stopped on rejoining - simple. There is then a repayment due IF resettlement commuation was taken (APFS75 stuff) because you are not resettling - the MOD has given you your old job back.
FTRS pay is capped at the level that you left at - you cannot earn more than on the last day of service.
If in receipt of a pension then that is used to make up your salary and the MOD tops up to the level that you left - ie you are paying yourself.
Can't see the attraction.
Who wins? Senior officers that take on the responsbility of a junior.
Creating a load of clockwatchers and contract readers...Discuss.
gijoe
Sorry that is incorrect. You can keep pension on rejoining on AFPS75, however abatement is likely (unless rejoining at a much lower rank). Also, the pay is not abated, it is the pension that is. Your post seems to have that 180 out? Finally, you are not paying yourself, that is nonsense.
PS. Also rejoining if over 55 on AFPS05 works too as then it is a pension and not an EDP.
Sorry that is incorrect. You can keep pension on rejoining on AFPS75, however abatement is likely (unless rejoining at a much lower rank). Also, the pay is not abated, it is the pension that is. Your post seems to have that 180 out? Finally, you are not paying yourself, that is nonsense.
PS. Also rejoining if over 55 on AFPS05 works too as then it is a pension and not an EDP.
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gijoe
Sorry that is incorrect. You can keep pension on rejoining on AFPS75, however abatement is likely (unless rejoining at a much lower rank). Also, the pay is not abated, it is the pension that is. Your post seems to have that 180 out? Finally, you are not paying yourself, that is nonsense.
Sorry that is incorrect. You can keep pension on rejoining on AFPS75, however abatement is likely (unless rejoining at a much lower rank). Also, the pay is not abated, it is the pension that is. Your post seems to have that 180 out? Finally, you are not paying yourself, that is nonsense.
Second Career = New Salary + Pension
Rejoin/stay in past IPP.... Salary = Same salary as you were on before.
IF NEW SALARY > MOD SALARY
{EXIT MOB AT IPP}
//Cash pension, pay off mortgage etc
ELSEIF
{EXIT MOB AT IPP}
//No guard duty at HW