Forces Pension rise.

#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?
 
#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.
 
#7
Thanks Ed & Dave. Thats about 24 quid a month for me. Edited to add: after tax.
 
#8
Should I have received my annual Paymaster statement already? Not had it yet.
Had mine from xafinity yesterday. Is that the Paymaster you're on about?
 
#9
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
 
#10
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?
 
#11
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!
 
#12
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?
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.
 
#13
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.
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.
 
#14
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.
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?
 
#15
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?
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.
 
#16
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!
This happened to me a couple of years back, not the tax free pension bit but the 50% bit - I spent ages trying to get through to the taxman until I said, bollox, had enough and waited until may the following year and claimed back the additional 10% I had been paying when I filled in my tax return..didnt get interest but at least I got it back.. That way at least I dont get a Tax bill, this year I calculated i have overpaid £9.40 - wonder if I can get to Barbados for that?
 
#17
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.
Turn 55 and your commuted loan is paid back - so that increases the pension, the inflation proofing kicks in - again the rise is dependant on the inflation rates apertaining to the years up to 55, my pension increased by 87% when I turned 55 and has risen by around the 3% mark every year since - apart from last year of course which was a stupendous 0%- the 3.1% this year looks good, but I have to pay 40% of that back in tax - so my rise was an earth shattering 1.86% a whole £15 a month!!!!!!
 
#18
Just to lighten the mood; I had a letter advising me that I had a pension due. I'd no idea from what company as I thought I was receiving all my pensions, so I rang the number on the letter and was informed the pension in question was from Vauxhall Motors.

I'd actually forgotten I'd worked there, but in '72 and I worked there for three months helping to install the lighting for a new production line.

So anyway, I, naturally, asked how much and the amount to be paid was 50p - per year!

I, of course, asked for the lump sum and a cheque duly arrived. This pension cost two letters, one cheque, a 'phone call and the time taken to organise it.

How much did I get? £8.70p! :rofl::rofl::rofl:
 

exbleep

On ROPS
On ROPs
#19
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.
The pension you get when you are under 55 stays that way because you don't receive any rises. When you hit 55, you get all the rises in one go. Retire at 40 and you stay on the same pension until you hit 55 whether you commute or not. Hence I left aged 46 and got almost 30% increase when I reached 55.
If your military pension is your main income, you should have got more then the 3.1% this year because they added an extra 1000 quid to the tax levels.
 

exbleep

On ROPS
On ROPs
#20
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!!
Was that the actual rise or just the extra you got for this month? I haven't had my P60 or my advice of pension from Xafinity yet and got a rise of £16 as well. However, I think that is for only 10 days (mine gets paid on the 10th of the month) or it may only be for 4 days (end of year being 6th April). Considering it is 3.1% plus an extra 20% of 1000 quid (as the tax levels went up) then I assume the rise will be greater as the extra on the tax level alone will be £16.
 

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