AFPS 75/15, what does all these terms mean!

#1
Good afternoon all,
This will probably be covered by someone else, but a search revealed nothing specific, I am due at Naval Med board in two weeks, I attended a brief on the Board and compensation - which briefly touched on AFCS but nothing in depth. I want to be able to have a plan B in either case of the board, I have three years left to serve, I have run the pension calculator but I am bamboozled by inverse commutations etc. Can someone give a RN Warfare rate quick and dirty meaning of 'if you take this, then you get that' please?

Thank you in advance.
 
#4
Thank you all for the replies. I used to be able to understand the 1975 pension.. Fully commute and your annual pension will reduce until 55, but you got a bigger tax free lump sum etc.

The 75/15 comes up with (the first bit I get,

Pension Details - AFPS 75/15

Pension/EDP at Exit
X,XXX

Lump Sum at Exit
XX,XXX

Deferred Pension at SPA
XX,XXX

It is when it goes to the next bit:

If you opt to inversely commute your AFPS 15 EDP Lump Sum

AFPS 75
AFPS 15
Total
Total increased AFPS 15 EDP income by inverse commutation
0
2,974
2,974

If you opt for maximum Commutation

AFPS 75
AFPS 15
Total
Commutation additional lump sum payable at Exit
11,383
0
11,383
Commutation total lump sum payable at SPA
0
27,230
27,230
Reduced Immediate Pension (until age 55)
6,155
0
6,155
Reduced Deferred pension at SPA
0
4,084
4,084
 
#5
I will reiterate what SA said above - join the FPS. For £38 per year they will give you direct access to a forces pension expert who will provide you with all options available to you regarding your pension and will answer any questions you may have. Try finding that level of service for £38 on the high street.

This is your future you are talking about, don't be tight!!
 
#6
Thank you all for the replies. I used to be able to understand the 1975 pension.. Fully commute and your annual pension will reduce until 55, but you got a bigger tax free lump sum etc.

The 75/15 comes up with (the first bit I get,

Pension Details - AFPS 75/15

Pension/EDP at Exit = THE AMOUNT OF INCOME YOU WILL RECEIVE STRAIGHT AWAY (BROKEN DOWN BY SOURCE)
X,XXX


Lump Sum at Exit = THE LUMP SUMS YOU WILL RECEIVE STRAIGHT AWAY (AGAIN, BROKEN DOWN BY SOURCE)
XX,XXX


Deferred Pension at SPA = WHAT YOU WILL GET WHEN YOU REACH YOUR STATE PENSION AGE
XX,XXX


It is when it goes to the next bit:

If you opt to inversely commute your AFPS 15 EDP Lump Sum = IF YOU GIVE UP ALL OF YOUR AFPS 15 EDP LUMP SUM YOU WILL GET A LARGER AFPS 15 EDP INCOME UNTIL YOUR STATE PENSION AGE

AFPS 75
AFPS 15
Total
Total increased AFPS 15 EDP income by inverse commutation
0
2,974
2,974

If you opt for maximum Commutation = IF YOU DECIDE TO GENERATE EXTRA LUMP SUMS

AFPS 75
AFPS 15
Total
Commutation additional lump sum payable at Exit = THIS IS THE EXTRA LUMP SUM YOU COULD RAISE FROM AFPS 75. YOU WOULD BE BUYING AN EXTRA AFPS 75 LUMP SUM AND PAY FOR IT FROM YOUR PENSION UNTIL YOU ARE 55
11,383
0
11,383
Commutation total lump sum payable at SPA = AFPS 15 DOES NOT GIVE AN AUTOMATIC LUMP SUM BUT YOU COULD GIVE SOME OF YOUR PENSION UP TO GET ONE. IF YOU WERE CONSIDERING IT THE MOST YOU COULD GET AS A LUMP SUM IS THIS AMOUNT
0
27,230
27,230
Reduced Immediate Pension (until age 55) = IF YOU WERE TO RAISE THE EXTRA AFPS 75 LUMP SUM THIS IS HOW MUCH YOUR PENSION WOULD BE UNTIL AGE 55 AT WHICH POINT IT WOULD GO BACK UP TO ITS ORIGINAL LEVEL.
6,155
0
6,155
Reduced Deferred pension at SPA = IF YOU WERE TO GIVE UP THE MAXIMUM AMOUNT OF AFPS 15 PENSION TO GENERATE THE LUMP SUM THIS IS THE AMOUNT OF PENSION YOU WOULD HAVE LEFT
0
4,084
4,084

Answers in bold capitals above. You should really book yourself on a Financial Aspects of Resettlement briefing. It covers all of this and more.
If you are a member of the FPS you can get all this set out for you in a personalised account, in plain language
 
#8
Good morning an thank you for your replies!
@ForcesPensionSociety, that pretty much covers it! But, I will look into joining the FPS.

@PapaGolf, for some reason everyone I asked at our UPO treated my queries like battery acid and said we cannot give you financial advice..
 
#9
Good morning an thank you for your replies!
@ForcesPensionSociety, that pretty much covers it! But, I will look into joining the FPS.

@PapaGolf, for some reason everyone I asked at our UPO treated my queries like battery acid and said we cannot give you financial advice..
I had the same at mine, but was lucky enough to find one who knew his job from pre-JPA days, and squared me away. This was 3 years ago, he's probably out by now. Probably threaders with people filling clerks PIDs to make up numbers in the AGC, who just tell you to ring the SPOC or email the JPA helpdesk. I know English isn't their first language, but they should at least know their trade!!
 
#10
Totally agree @PapaGolf, Slightly off topic - I have just put in for a medal from about 18 years ago (again PRE JPA), she looked at me like I just told her to shit in her hands and clap when I gave her the manual medal JPA form. Probably thinking this form doesn't come with any buttons to do her work for her.
 

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