Hi, just about retiring from the mob and looked at your post and also the legislation, handouts etc. (had some spare time during resettlement classes) that surrounds the statement you are making and so far, can see that you could be correct. Will be interesting to find out if this is true but so far, have not found anything specific that states the EDP will stop on receipt of pension crystallisation other than Normal pension age (NPA) or deferred pension age (DPA)
the wording i have found so far as follows
AFPS final agreement leaflet :-
At your State Pension Age the EDP income stops and is replaced by the deferred pension
GAD document 2012 (old but think still relevant) :-
c) A normal pension age of 60 and a deferred pension age of State Pension Age.
Annual EDP income from leaving to SPA. Members retiring immediately on qualifying for EDP receive 34% of preserved annual pension, rising by 0.85% for each extra year worked up to normal pension age;
A normal pension age of 60 and a deferred pension age of State Pension Age
Right --- but you need to keep your schemes very separate in your mind.
If you are leaving with a preserved/deferred pension (so before age 55 for AFPS 05 or before 60 for AFPS 15), and have served to at least the 18 yr point(AFPS 05)/ the 20 yrs point (AFPS 15) AND age 40, you get EDP benefits and they last until age 65 for AFPS 05 and state pension age for AFPs 15.
You can crystallise your AFPS 05 or AFPS 15 benefit at any age after age 55 with actuarial reductions and the EDP benefits will continue as above.
AFPS 05 EDp is based on 50% of the members preserved pension plus 1.667% of preserved pension for every year served after the 18/40 point.
AFPS 15 EDP is based on 34% of the deferred pension plus .085% of deferred pension for every year after 20/40 point.
Hi, thanks for the information. yep am happy with all that.
Had a conversation with the pension people on what I will receive from the AFPS 15 scheme but the answer was a little sketchy with words like "we put the details in the machine and it spits out numbers and that's what you will receive" is a bit of a let down as you can imagine.
Will be posting off for a pension forecast request soon to get a ball park figure of what I will receive so fingers crossed, not too much of a shock.
Fingers crossed about the EDP payments still carrying on regardless of taking the pension early. will seriously think about taking it earlier than pension age all depends on mortgage completion date and tax situation at the time
I am happy that the pension will be actuarially reduced to compensate for the longer payments.