Financial Golden Carrot in Lieu of Pension Rumour ??

Discussion in 'Army Pay, Claims & JPA' started by two-four-albert, Jan 14, 2010.

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  1. Tis a simple rumour I heard today, there may be an offer of cash instead of having your AFPS 75 pension, the figure I heard was 250k (tax free). Anyone else heard this one, it amused me as I thought of going in the admin office to find Noel Edmonds with a load of red boxes :wink: Thoughts/Inputs please ??
  2. Spanish_Dave

    Spanish_Dave LE Good Egg (charities)

    Impossible as pensions are different according to rank are they not
  3. That is true Spanish however, It was 2 people of the same rank as me who were telling me the said rumour so maybe thats why they quoted that Loreal figure

    I might not live long enough, so I will take it.

  5. Spanish_Dave

    Spanish_Dave LE Good Egg (charities)

    The problem is if you get a lumper it will go in a couple of years, I have been out 7 years this month and get over £1000 tax free every month pension, lump that onto lump sum and I am pushing £115K in a short space of time. On the other hand if you need the dosh or are planning to peg it any time soon then take the cash, personally I plan to be around taking the cash for a while yet :lol:
  6. How do you get the pension tax free?
  7. This rumour pops up,every couple of years or so, I last heard it about 18 months ago, when it must have been true, cos a mate of a brothers, aunties, uncle had heard it from the cleaner at MOD Main Building!
  8. Id heard it years ago too.

    If you think about it, who is going to live long enough to get £250k (including lump sum and monthly amount) in their pension? So it wouldnt be saving the govt any money to hand out £250k to everyone who has done 22 years as an OR or 16 years as an Officer. Its cheaper to stick to the original AFPS 75 deal or invent a new pension scheme, and theyve done just that.
  9. As GrmpyGit said

    Back in 94/95 this was "going" to happend for those getting redundancy .

    Then when AFPS 75 went to the new AFPS same again - in a way this is/was true but you have to live to 65 to be able to claim it.
  10. If this sort of scheme were to happen at all, it would need to be scaled to rank and length of service. i.e. more complex than just handing out £250k.

    In the current climate, I could see the logic of it being mulled over as a "quick release" incentive, targeted at those ranks where the Armed Forces wished to downsize immediately. But that too is fraught with difficulty, as MoD has to be sure it would achieve the intended effect.
  11. Spanish_Dave

    Spanish_Dave LE Good Egg (charities)

    Medical discharge with 3 months to push mate :lol:
  12. Trouble is, if you are at OF3 and have just qualified for IPP under AFPS 75 you could take:

    £79k commuted tax free lump sum.
    £9k pa taxed, so approx 8054 pa after tax (assuming 4700 tax threshold) so 250k is 21 years pension including the lump sum. After which you lose and Govn win. If you leave at 37 then by 58 you have lost.

    That assumes of course that you don't invest and make a return on the 250k.

    If you leave at 37 and live to 77 (average age of mil person, i saw somewhere or could have made up)

    Then under AFPS75 you will be getting approx £223k lump sum and commuted to 55 then £264k based on all increments being applied and commute being paid back, so a grand total of £487k after tax (very basic tax assumed) by 77, or £250k at 37.

    Noel and the red box indeed.....
  13. Wow PL, a bit early in the morning ???? Crunchy nut number cruncher or what ???
  14. I hope it isnt performance related for you 24A as you'd be getting BFH (bus fare home). As said above this rumour appears every few years and would be hard, but not impossible, to do. I think you would need a very strong chancellor to put this through as the initial outlay would be unbelievable IMHO and may cut into MPs expenses.
  15. I have this very day received a letter from those wonderful HMRC people informing me that my disability pension is going to be taxed at basic rate (20%).

    This after over 20 years tax free. Is this a change in the rules or are they just jerking my chain I wonder?

    Of course I'll be contacting them on Monday but I have to say that nothing would suprise me these days!

    Maybe your tax free days are over as well?