Army pension that Im paying for

#1
Ok here is the thing

Have just found I have a private pension scheme which has been running since 1990, It was funded by my SEPS ie I opted out of the Governments second pension scheme.
Upon ringing the company I was told that no funds had gone in since 1993?
I rang the National Insurance people and was told the reason for no funds going into it.

Apparently my SEPS go to fund my Army pension??????
Am I the only one not to realize I was paying for my own pension???
I thought it was a perk of the job rather than something I have funded all this time!
 
#2
So where has my SERPS PAYMENTS GONE FOR THE PAST 16 YEARS????
SERPS is part of your National Insurance payments, so it wouldnt come up as a deduction.
Am just informing you what the woman from the Tax office told me.
Thats SERPS pays for my Army pension and then when I leave and get a normal job in Civvy street then my SERPS payments would start to go back into my private pension scheme???
 
#3
MSI64 said:
Ok here is the thing

Have just found I have a private pension scheme which has been running since 1990, It was funded by my SEPS ie I opted out of the Governments second pension scheme.
Upon ringing the company I was told that no funds had gone in since 1993?
I rang the National Insurance people and was told the reason for no funds going into it.

Apparently my SEPS go to fund my Army pension??????
Am I the only one not to realize I was paying for my own pension???
I thought it was a perk of the job rather than something I have funded all this time!
Think you mean Serps not Seps ( a bit like the ad on the Tv for the merecat insurance) Try Googling "pension Serps" and have a read.
 
#4
I was always led to believe that through your pay somewhere you were actually contributing towards your pension yourself in some way too.

It had been mentioned a couple of times, once by someone that worked for Inland Revenue and someone else who deals specifically with pensions for a living.

It wasnt something i really worried about to be honest, but seemingly it was all wrapped up in the National Insurance decuctions :)
 
#5
I think you and the lady are confused.

From square one:

Your Old Age Pension is funded by your NI contributions which are listed on your payslip. JPA lists them under "NI D" and I have just checked. Bloody Hell, am I really paying that much towards my old age?!!!! You may not get back as much as you put in, especially if you are under 40!

SERPS (State Earnings Related Pension Scheme) is the backup State pension introduced by the Tories in the 1980s IIRC. We are contracted out. Therefore, nothing should appear on your payslip.

We are, in effect, on a private pension scheme to which we do not contribute BUT the AFPRB takes the benefits of the pension schemes into account when it works out our salaries and abates (reduces) our salaries by 7% IIRC. So, we pay, in effect, 7% of our salaries into our pensions.

If you are on the 1975 pension (you joined before Apr 05 and did not transfer to the 2005 scheme pension when offered) your pension rates are published in a table every year just after the official salaries are published.

If you are on the 2005 scheme, then your pension accrues at 1/70th for every year of service, times your final salary.

Clear as mud?

Litotes
 
#6
I assume that the "NI D" I mentioned in my reply means that I am paying National Insurance Class D subscriptions.

I can't be bothered to check now, but will do so tomorrow!

If I'm not contracted out, I will be annoyed!

Litotes
 
#7
Thanks for the info, Im confused because I aint right bright, She is confused because??????
 

oldbaldy

LE
Moderator
#8
Litotes said:
I
SERPS (State Earnings Related Pension Scheme) is the backup State pension introduced by the Tories in the 1980s IIRC. We are contracted out. Therefore, nothing should appear on your payslip.

..............



Clear as mud?

Litotes
SERPS finished in 2002.

I now bring you the State Second Pension:
State Second Pension
 

Sixty

ADC
Moderator
Book Reviewer
#9
Litotes said:
If I'm not contracted out, I will be annoyed!

Litotes
You are. That's why you're paying reduced NI conts (NI D)
 
#10
That was the thing she said I wouldnt get a second State pension because I paid into an Army pension?
Will get more info tomorow
 

Sixty

ADC
Moderator
Book Reviewer
#11
MSI64 said:
That was the thing she said I wouldnt get a second State pension because I paid into an Army pension?
Will get more info tomorow
Pretty much. You're not paying into S2P so you pay reduced NI contributions.

The assumption being that your Army pension will be far more generous than S2P so it's more beneficial to you to be contracted out. You'll still get the basic state pension though.
 
#12
Now that makes it clearer thanks very much
 
#13
Afterthought (with the caveat that I might not be correct):

40 - immediate pensions payable under AFPS75 and 05
50 - private pensions can start paying out (not applicable to most Service personnel)
55 - full pension payable under both AFPS75 and 05
55 - index linking for immediate pensions paid at 40 starts (not sure of this?)
60 - preserved pensions pay out (if you retired without qualifying for an immediate pension)????
60 - Old Age Pension for girls pays out (note that this changes to 65/68 in the next few years)
65 - Old Age Pension for boys pays out (note that this changes to 68 in the next few years)
65 - SERPS pays out

Note well:

The AFPS75 scheme is second only to that of MPs. Do not change!
The AFPS05 scheme is about as good as it gets in the current climate. Do not change!

Further caveat: I am not an expert on pensions. :D

Litotes
 
#14
oldbaldy said:
Litotes said:
I
SERPS (State Earnings Related Pension Scheme) is the backup State pension introduced by the Tories in the 1980s IIRC. We are contracted out. Therefore, nothing should appear on your payslip.

..............



Clear as mud?

Litotes
SERPS finished in 2002.

I now bring you the State Second Pension:
State Second Pension
I knew some b****** would catch me out!!!! :D

Litotes
 
#15
Sixty said:
Litotes said:
If I'm not contracted out, I will be annoyed!

Litotes
You are. That's why you're paying reduced NI conts (NI D)
The interesting point is that, whilst I can do my own tax return, and am reasonably up to speed on pensions, I do not understand the way in which National Insurance contributions are calculated!

When I am PM, I will insist that the Chancellor and all the HMRC Civil Servants will have to complete their own tax returns.

We might then see an improvement in the forms and information! :D

Litotes
 
#16
It's 11 o/clock at night and any sensible Arrser is out drinking and shagging. And I am typing out information on Army pensions.

Something wrong here, methinks!

Litotes
 

Sixty

ADC
Moderator
Book Reviewer
#17
Litotes said:
It's 11 o/clock at night and any sensible Arrser is out drinking and shagging. And I am typing out information on Army pensions.

Something wrong here, methinks!

Litotes
Mate, it's a school night. That's my excuse and I'm sticking to it.
 
#18
Sixty said:
MSI64 said:
That was the thing she said I wouldnt get a second State pension because I paid into an Army pension?
Will get more info tomorow
Pretty much. You're not paying into S2P so you pay reduced NI contributions.

The assumption being that your Army pension will be far more generous than S2P so it's more beneficial to you to be contracted out. You'll still get the basic state pension though.
Wot he said. If you did receive what were then called SERPS rebates between 1990 and 1993 it must have been prior to you joining up.

You have not lost out on anything and you are better off than the average civvy who pays more in monthly NI contributions for his S2P. If you leave the Army and work for an employer who is contracted in you need to talk to someone who knows what he is talking about, otherwise your NI contributions will automatically go to your personal pension plan. The perceived wisdom is that older people (45+) are better off with S2P.
 

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