Forces Pension rise.

Discussion in 'Old & Bold' started by retired_taz, Apr 26, 2011.

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  1. Good news, I am now obviously rich and dont require any real increases - my pension has just gone up by the amount of £16 per month after tax (with no rise last year that equates to £8.00 a month over the two years) - now I am wondering what I can do with that illustrious and life changing increase in my monthly spending money!!
     
  2. Should I have received my annual Paymaster statement already? Not had it yet.
     
  3. So what is the pension increase this year?
     
  4. Spanish_Dave

    Spanish_Dave LE Good Egg (charities)

    3.1% I have an increase of about £32
     
  5. thats because the Govt sneaked in a change to index link from CPI not RPI.

    This is currently under a legal challenge from a combination of Public Sector bodies.
     
  6. Thanks Ed & Dave. Thats about 24 quid a month for me. Edited to add: after tax.
     
  7. Had mine from xafinity yesterday. Is that the Paymaster you're on about?
     
  8. I hit the big 50 at the end of the month and lots of cards arrived today along with the pension newsletter and P60. Now I know that I will see no change until I hit 55 so I only give it a cursory glance. But suddenly I feel old as it starts "Dear Pensioner". I was looking forward to my big day and now feel the urge to buy Worthy Originals, a cardie and trousers which go up to my arm pits!!!!!! Damn you SPVA
     
  9. My monthly pension payment seems to be decreasing annually, not by much, just mere pennies, but none the less it is decreasing. I never commutated my pension and when I hit 55 it will increase. Is this the reason for the annual decrease?
     
  10. I got my advice of payment and P60 from Xafinity yesterday. The tax codes have changed and some are seriously wrong. Usually it gets a quick glance and then filed under 'more paperwork'. But, being bored, I gave it the once over and I noticed that I was going to be paying 50% tax on my pension! Phoned up Xafinity who were very sympathetic but said that I would have to contact the Tax Office. Phoned them up and listened to crap music for 20 minutes, got through and explained the problem (and also that it is currently my sole source of income) and got it changed .... to a TAX FREE pension!!!

    Check your Tax Code!
     
  11. Why would it increase at 55 if you didn't commute? I thought that was the whole point of commutation that it froze your pension until you were 55.

    One of us has it wrong.
     
  12. I thought long and hard about commutating, as all of the old sweats I had ever served with banged on about commutation (bigger initial pay out, smaller monthly pension), but when I actually sat and read some of the bumph that was sent to me prior to retiring I realised that life commutation (in my opinion) was not an option for me, so I had a smaller pay out, but a larger monthly pension (my annual pension is about £9,300), which will still increase at 55.
     
  13. Ah you are obviously older than I thought. Life commutation was discontinued by the time I had to make the decision.

    So you must have done a partial commutation if you are going to get a rise at 55 though?
     
  14. IIRC, life commutation is only for pensionable service before 1978? I took resettlement commutation which initially reduces your pension but you get it back later. If you retire before 55 your pension payments are frozen until you reach 55 at which point you get the resettlement commutation increment back and indexation increases. I reached 55 last month - looking forward to seeing how much the increase will be but I'm not expecting it to be life changing!

    Regards

    88

    Edited to add AFPS 75.