Added Pension Benefit - AFPS 15

[arnointhestand]

Hi,

I've done a search an looked though existing threads but I can't quite seem to find the answer I'm looking for. My questions is, when is added pension benefit paid?

I sent off the quotation form to pay in the maximum lifetime allowance of GBP 6,500 and the value back was GBP 545 added benefit. I believe that this is payable from state pension age and not Early Departure Point (min 20 years service or before age 60)?

What is the GBP 545? Is that an additional GBP 545 per month or annual pension?

Thanks for any help.

 

[Forces Pension Society]

It comes into payment when the pension itself is paid.

It looks to me as if the info you got in response to you request for a quote means that if you give them £6,500 now your annual pension is increased by £545.

The reference to 'maximum lifetime allowance' suggests to me that you think you can only pay in £6,500. That is not correct. You can pay in much more than that during your service but the most the pension is allowed to rise by as a result of purchasing added pension is £6,500.

Although the added pension does not pay out until you draw the pension, there is an implication for EDP (at least 40 years relevant service and at least age 40). The EDP benefits are worked out on the basis of the size of the deferred pension - so if you have purchased added pension, your EDP benefits will be larger

 

[john9748]

It comes into payment when the pension itself is paid.

It looks to me as if the info you got in response to you request for a quote means that if you give them £6,500 now your annual pension is increased by £545.

The reference to 'maximum lifetime allowance' suggests to me that you think you can only pay in £6,500. That is not correct. You can pay in much more than that during your service but the most the pension is allowed to rise by as a result of purchasing added pension is £6,500.

Although the added pension does not pay out until you draw the pension, there is an implication for EDP (at least 40 years relevant service and at least age 40). The EDP benefits are worked out on the basis of the size of the deferred pension - so if you have purchased added pension, your EDP benefits will be larger

If i join the FPS can they give me information regarding AVC’s and what it may look like doing to my pension if i payed a certain amount each month? For X amount of month/ Years? Would it be better if i conpleted the form 6 before hand to get the calculation they set? Or do you not need this?

 

[Forces Pension Society]

Submitting the Form 6 is free and will give you an accurate idea of what you are buying.