Are there any Pension Gurus out there?

Discussion in 'Armed Forces Pension Scheme' started by BeerDrinker, Nov 14, 2007.

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  1. Can anyone help me with a question about something I think I read (but have probably got all wrong)

    I seem to remember reading a PDF about AFPS75 and it was on the lines of "Pension accrued prior to 1980 can be commutated at a 100% rate because the blah blah blah financial act was then not in force - With the caveat that this was gradually being phased out.

    Also, from what I seem to remember reading I gather that the remaining pension pot can be commutated at 50% - Can anyone confirm this for me please?

    My service was from 72 till 85 and I was granted a deferred pension (for 12 years service OR3), and, being as the pension is likely to be minimal I have taken my own responsibility for my retirement and would like to get as much cash as poss out of my Army pot if I can

    Thanks in advance
  2. OK, BD, I'll have a go!

    I think commutation is only open to those who served sufficient time to gain an immediate pension under AFPS75 (AFPS05 stopped commutation completely, IIRC). As you left early (before you would have received an immediate pension), your pension was frozen.

    Under AFPS75, I think you become eligible for your frozen pension at 60 at a rate of something like 13/70 of your final salary, index linked to the time that you retired.

  3. OK Thanks for that - I sort of expected it was something along those line anyway - The hunt for the PDF continues...
  4. BeerDrinker, don't forget that have to apply for your preserved pension at age 60. It won't just appear in your bank. Also you'll receive a tax free preserved terminal grant of 3 times your annual pension.
  5. Advice I was given was to contact them when you are 58yrs old.

    This gives them a heads up so to speak - and some time to sort it all out.

    We all know what military admin was like at times :x
  6. In your case you will be entitled to a preserved pension at age 60. The pension is 2.75% of a 37 year pension for each year served so if you served 12 years this would equate to 33% you will also be entitled to a lump sum of 3 time syour annual preserved paension again at age 60. Tis is all based on the rates of pension in issue at the time of your discharge increased in line with the RPI - I may have a copy of the 85 pension code knocking about at work somewhere, sad I know!! if you let me know your rank and age on discharge and time in rank I may be able to give you a rough idea of what to expect. As previously posted commutation rates do not figure in preserved pensions so you have nothing to worry about on that score.

  7. Paywog,

    I appreciate this is a very old thread but could you possibly advise me on what my wife is likely to receive for her preserved pension after serving 14 years. (age 32 and over 3 yrs in rank)She achieved the rank of Sgt (AGC SPS) and terminated in 1998. I'm not after her money or anything, she's just asked me to enquire. I've got my own pension to look forward to :)

    Thank you