FTRS effect of pay rise on pension abatement

theoldti

Lantern Swinger
Been on FTRS (ltd) since April 19 and just had a letter from the pension guys that my pension will be abated more after the recent pay rise. It works out that after my FTRS pay and reduced pension I get £0 increase. Because the pay rise came in September and backdated to April I actually owe the pension peeps money as they have overplayed me. Has anyone else had this issue?
 

vauxhall

Lantern Swinger
So, you joined in April 19 and your abatement was set using the pre-pay rise figure. Then the pay rise was announced and back dated to April. That would trigger the original calculation to be revisited I'm afraid.

I will check with HQ tomorrow to see if members have raise the issue with them.
 

theoldti

Lantern Swinger
Thanks guys. I have 2 issues about this:

1. I am new to FTRS but it looks to me that if I get a pay rise on my RN salary, that is cancelled out by a reduction in pension. This seems unfair.

2. The pay rise was announced in July and implemented in September yet it has taken 4 months from implementation to inform me that my pension payments are wrong. This is unacceptable.
 

vauxhall

Lantern Swinger
I can only comment on the first point, theoldti. Pay rises going forward should not generate a reassessment of the abatement. A promotion or entering into a new contract will.
 

azoubels

Newbie
Generally no, but there is a corner case where you have income from savings interest, and your employment income nudges you past one of the thresholds where your personal savings allowance drops.







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I can only comment on the first point, theoldti. Pay rises going forward should not generate a reassessment of the abatement. A promotion or entering into a new contract will.
Evening Gents, after a little advice. I’m due out 30 Apr 2022 and looking at starting FTRS the day after. I understand a little about abatement and the fact I can’t earn more than my last salary and I won’t get my pension. Will I however still receive my Lump sum ? Thank you for any advice
 

Drakey

War Hero
Evening Gents, after a little advice. I’m due out 30 Apr 2022 and looking at starting FTRS the day after. I understand a little about abatement and the fact I can’t earn more than my last salary and I won’t get my pension. Will I however still receive my Lump sum ? Thank you for any advice
Yes, you will receive your lump sum.
 

vauxhall

Lantern Swinger
If I explain why it used to happen, it might stop bugging you. Before 6 April 2005, if you left Regular service and joined the FTRS, you would be pensionable under AFPS 75 for each and, if you did not have a 30 day break, you were considered to be in continuous service - so the lump sum was clawed back.

Once RFPS came in in April 2005, that changed so, whilst the pension is still abated, the pension lump sum is safe.

What is not safe is the AFPS 05 EDP. As it is considered to be compensation for not having a career through to age 55, if you rejoin or take on FTRS roles, the income stops and any 'unexpired' portion of the lump sum is clawed back. So, if your lump sum was worth 9 months pay and you rejoined after 6 months, about 1/3 of the lump sum would be clawed back.

If you are a member of the Forces Pension Society, the Pensions Team can help you understand what this might mean in your individual circumstances.
 
If I explain why it used to happen, it might stop bugging you. Before 6 April 2005, if you left Regular service and joined the FTRS, you would be pensionable under AFPS 75 for each and, if you did not have a 30 day break, you were considered to be in continuous service - so the lump sum was clawed back.

Once RFPS came in in April 2005, that changed so, whilst the pension is still abated, the pension lump sum is safe.

What is not safe is the AFPS 05 EDP. As it is considered to be compensation for not having a career through to age 55, if you rejoin or take on FTRS roles, the income stops and any 'unexpired' portion of the lump sum is clawed back. So, if your lump sum was worth 9 months pay and you rejoined after 6 months, about 1/3 of the lump sum would be clawed back.

If you are a member of the Forces Pension Society, the Pensions Team can help you understand what this might mean in your individual circumstances.
Thank you shippers
 

TheCommunicator

Lantern Swinger
I really struggle to understand how we are penalised with pension abatement. In my opinion it is theft! If I leave and take new job with another employer that pays the same (or more) than my former RN salary my pension is not abated. So, why should this happen if I leave and start a new contract with the RN?

Where does the money which is taken from you as abatement go? Does it come back to you later on or is it gone for good?

If I were to leave as a chief and started a FTRS job as a chief I'd be getting paid exactly the same as if I was to leave as a chief and start a FTRS job as an AB. Same money for a fraction of the work and responsibility.
 
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