Benefit Information Statement

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Anyone able to give a bit more info on my BIS - explanatory notes not very clear and I know it's not a forecast.
As I look at it is it saying I get 2 lump sums, pension and EDP payment ?

Cheers
 

Forces Pension Society

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As you have reached the AFPS 75 Immediate Pension point, if leave you now you will receive theAFPS 75 pension quoted and the lump sum (3 times the pension quoted). The AFPS 15 pension is deferred until your state pension age but you could claim it as early as age 55 at a reduced rate.

As you have served at least 20 years and are at least age 40, you are entitled to AFPS 15 Early Departure Payment benefits which come into payment immediately. It comprises an annual income and a one off lump sum worth 2.25 times the income.

So, yes, two lump sums, a pension and an EDP income.

If you need further help with this, visit www.forcespensionsociety.org and join us.
 

bluenosewrx

Old-Salt
I have received similar, so in laymen terms he receives the 75 pension plus the EDP pension and the 15 pension being paid at state pension age?
ie, £12,396.79 + £1,875.93 immediately then the 15 part of £3,018.66 when SPA is reached and same with lump sum?, sorry for the questions.
Thanks
 
Grateful for clarification on the tax free lump sums.

Does he receive the 75 and EDP lump sums on leaving and then the 15 lump sum at State Pension Age?
 

Forces Pension Society

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The AFPS 75 pension and lump sum is payable if the individual reaches the Immediate Pension point, even if he or she has transferred to AFPS 15. If the AFPS 15 EDP 20/40 point has been met, the EDP lump sum and income are paid.

AFPS 15 does not feature an automatic lump sum but, when the pension is drawn, pension can be surrendered to generate a lump sum. The deferred pension age is the member's State Pension Age but the pension can be drawn as early as age 55 at a reduced rate.
 
Nope, still not clear. Using the example above, could you state what the service person would get had they left on that birthday and what they would get at SPA. Eg monthly income of £12,396 + £1,875 until SPA at which point they would get £12,396+£3,018; noting of course that index linked increments will increase the actual figures.

Then as lump sums, they would get £37,190+£10,565 on leaving and then £20,124 at SPA.
 

Forces Pension Society

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A monthly income of £12,396 - you'll be lucky! That is the annual amount, payable in 12 monthly instalments. And the statement shows EDP income £1,875.93 per year - again payable in 12 monthly instalments.

The lump sums on leaving as as you say above but the AFPS 15 lump is dependent upon you chosing to give up pension to generate it. See page 14 of the attached booklet.

If you are a member of the Forces Pension Society, the Pensions Team will be happy to explain this to you more fully.
 

Attachments

  • AFPS15 Your Pension Scheme Explained.pdf
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Apologies for my error on annual/monthly. Thanks for the pension booklet. Has the FPS provided a view back to Veterans UK that the format of the BIS could do with being a little clearer?
 
My suggestion being that the statement should show what the service person is entitled to receive when they leave and then at SPA.

Also there is nothing obvious in the statement about the 15 limp sum being subject to sacrificing income.

This statement should be clear enough to interpret without having to be an outright expert in the subtleties of the schemes.
 

Forces Pension Society

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Thanks ACD. I understand these things are under constant review and, although there are things that have to be included, MOD are anxious that the information provided is accessible to members. I will pass your comments on.
 
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My suggestion being that the statement should show what the service person is entitled to receive when they leave and then at SPA.

Also there is nothing obvious in the statement about the 15 limp sum being subject to sacrificing income.

This statement should be clear enough to interpret without having to be an outright expert in the subtleties of the schemes.

Notes ( 3 ) ( 4 ) ( 5 ) ( 6 ) & ( 7 ) as indicated on the statement provided in the OP will / or should have the relevant information.
 

Mosquito

Clanker
My suggestion being that the statement should show what the service person is entitled to receive when they leave and then at SPA.

Also there is nothing obvious in the statement about the 15 limp sum being subject to sacrificing income.

This statement should be clear enough to interpret without having to be an outright expert in the subtleties of the schemes.
In my experience, sending a complaint to Veterans UK is the most likely way to have your proposal seriously considered/introduced. The significant sums of money involved for many receiving such pension information makes adding a couple of pages of additional information a small change to introduce.
 
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