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AFPF 75/15 Ill Health Award Calculation

potcivi

Swinger
To All,

I am new to this forum so hello to all, nice to meet you.

I just wondered if some of the more well informed members would be able to point me in the right direction as (after reading the rules myself) i am a little confused how my Afps 75/15 ill health lump sum has been worked out.

We are all human and im pretty sure it is me that has made a mistake / got the wrong end of the stick but in the event it is the nice folks in Glasgow i could do with some help. Here goes;

I have 13 years service, the bulk of which is under Afps 75 with a day or two over a year under Afps 15 by the time of my discharge. I'm happy that my Afps 75 lump and immediate pension have been calculated correctly, the issue i have is that the Afps 15 lump seems a little short.

The rule book i found for Afps 15 on the .Gov website states the following regarding Tier 1 injuries:

"The award will be calculated on the basis of 1/8th of your final pensionable earnings

(the best 365 consecutive days in the last 3 years) multiplied by the number of years

service in AFPS 15, subject to a minimum of 6 months and a maximum of 24 months

final pensionable earnings. If the calculation produces an award which would be greater

than 24 months final pensionable earnings, the award is capped at 24 months. If the Tier

1 calculation produces an award that would be less than 6 months final pensionable

earnings, it will be rounded up to equal 6 months.

If you transfer into AFPS 15 from a legacy Armed Forces pension scheme, your ill-health

award will be based proportionately on time served within the AFPS 15 scheme and time

served within the legacy scheme. The proportion of time spent in legacy pension schemes

will be calculated as per the rules of that scheme, and the proportion of time in AFPS 15 will

be calculated using AFPS 15 rules.

With the rules in mind i worked out the following.

So lets i received a £20000 lump from the Afps 75 scheme and let us say my salary for the last 3 years is a nice round £32000. Divide that by 8 to get 1/8th = £4000. As i have served pretty much spot on a year under Afps15 then this 1/8th (£4000) is what i get for a lump sum, however the second paragraph states that as the figure does not equate to six months salary it should be rounded up to reflect this, giving me £16000? The rules go on to state that the pension lump sums are calculated under their own independent scheme rules - which leads me to believe that i get £20000 from Afps 75 and 1/8th rounded up to 6 months salery from Afps 15...

My issue is that i am only due to receive a lump of 1/8th of my salary under the Afps 15 rules and not 1/8th rounded up to 6 months. Is the person at pension HQ taking in to account that i have a lump sum of £20000 from Afps 75 and adding the 1/8th from Afps 15 to it and thinking oh well £24000 is over 6 months salary so that’s all you’re getting laddy.

Finally, my question is this:

Have i misinterpreted the rules, as is probably the case or am i being shorted £12000 ???

All and any help would be greatly appreciated.

Kind Regards
 

Forces Pension Society

Sponsor
Sponsor
You need remember that the calculation under each scheme will take into account the proportion of your service in each scheme. That sounds double dutch but, basically, as the rule under each scheme is the same when the awards under each scheme are added together the resulting total of the lump sums will not exceed what you would have got if you had been a member of just one of them (but taking into account your total length of service).

The ill health rules for people with rights in AFPS 15 and protected rights in AFPS 75/05 are complicated and, at each Tier, there is apportioning to do. If you are a Forces Pension Society member email David or Anthony at pensionequiries@forpen.co.uk and they will set out for you exactly what part of the lump sum comes from which scheme. www.forcespensionsociety.org
 

potcivi

Swinger
Thank you for the reply, so if i understand, what you’re saying is that the 'lump sum must equate to a minimum of 6 months salary" rule applies in both Afps scheme rules and as such because the total amount is greater than 6 months salary then that’s what i am getting?

Unfortunately I’m not a member of FPS so will be un able to make the request, although the forecast i have received does break down what the lump is made up from each scheme... the ratio is close to what i used in my example..
 

Donny

ADC
Thank you for the reply, so if i understand, what you’re saying is that the 'lump sum must equate to a minimum of 6 months salary" rule applies in both Afps scheme rules and as such because the total amount is greater than 6 months salary then that’s what i am getting?

Unfortunately I’m not a member of FPS so will be un able to make the request, although the forecast i have received does break down what the lump is made up from each scheme... the ratio is close to what i used in my example..
Given the potential benefit you might want to consider joining: it's only £30 a year and they are really good on the detail of all this stuff.
 

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