Claiming a preserved part-pension

Discussion in 'Armed Forces Pension Scheme' started by retread2, Apr 3, 2013.

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  1. I would be grateful for any advice on the following:

    Situation: I am (rapidly) approaching my 60th birthday and will be applying for a preserved part-pension after service 1972-1983. I have been resident outside the UK continuously since 1983, and am a citizen of another country.

    I have downloaded the appropriate form (AFPS Form 8 not a blue face ffs!) for a shufti. At first glance it looked simple enough, but I am totally confused by Part C regarding recycling of lump-sum payments. I will not be doing that so my response to the two questions which have a YES/NO choice will be N/A. Is that correct?

    Moving to Part D, I am receiving another pension and can provide the details, but is the LTA % still relevant for someone not resident in the UK?
    I am obviously quite capable of posing these questions to SPVA but thought I would first pick the brains of those who lurk in this forum. I am keen to get the application right first time and get the ackers flowing when they are due.

    Any advice appreciated.
     
  2. This any good

    http://www.sppa.gov.uk/index.php?option=com_content&view=article&id=537:lifetime-allowance-frequently-asked-questions&catid=248&Itemid=987
     
  3. Think you need large pensions for it to matter, serving service 1972-1983........think only 75 onwards counts
     
  4. When I left I got a paper copy similar to (but a bit simpler than) the form at the link you gave. Did you not get the same?

    It seems to me I just have to fill in the paper copy and that is all I have to do. Does anyone know if I will also have to complete the online version as well?

    Also, it mentions that at age 65 the pension will reduce as that is the age at which NI will stop and I wil get a state pension, clearly this was drawn up prior to the recent change in pension age. Does anyone know if that will likely be deferred to age 67 now as seems to make sense?
     
  5. I was given sweet FA when I left, bar the little red book. Mind you, that was 30 years ago.

    Interesting point about the pension reducing, that's hard to believe. Leads me to ask, what if you don't (or won't) get a state pension?

    Sounds like the original bugger's muddle.
     
  6. Recycling tax free lump sum is about reinvesting the tax free lump sum to produce another tax free lump sum - basically there is a tax penalty for doing it so most people don't. Regarding LTA%, you can currently have a pension pot of £1.5M without suffering any tax penalty (going down to £1.25M next year) so they have to check what has been taken so far in order to assess whether you are about to breach the limit. Tell them what your pension is and where it is from. If it is not from a UK tax privileged scheme, they will ignore it. If it is from such a scheme, you need to be getting, in total, about £60K pa in pension for the LTA breach to be triggered.
     
  7. Thank you very much for that information. I thought that would be the case, but wanted to pick the brains of the knowledgeable on this forum before cocking it up!

    Now to find out if they will pay my pension into my Thai bank account ...
     
  8. @Retread; Xafinity paymaster will pay more or less anywhere. I allowed them to move my pensions for a couple of years (GBP 2.30 per transaction & around 2 working days to arrive) but I now prefer to do it myself. If the timing is wrong (New Year) it can take up to a week for the money to reach you.

    HTH
     
  9. Retread- they will pay into a Thai bank account but do the exchange at their rates so you lose out- they will only pay in in local currency, not tx it in as GBP. I queried this as I have multi currency accounts and wanted it paid in in GBP- the answer was no. If you have a UK account get it paid in there and tx across as and when you need the dosh. Lloyds TSB are now allowing overseas txs online at set charges- just make sure it is paid into your Thai account in GBP and tx'd at this end- Kasikorn always seem to have the best rates. Chok Dee.
     
  10. Thanks Simbo (and Fingers_1661) all good info. I haven't had a UK bank account sonce 1983. The alternative to the payments being made to my Thai bank account (Bangkok bank, as it happens) would be for the $ to go to Australia and then Thailand. Good chance of losing twice instead of just once!

    Khorb kun krap!