GIP & Pension

Can someone provide their expert opinion regarding GIP and Immediate Pension.

I’ve been awarded 30% Band D GIP when I leave, I’m not being MD and will receive a full 24 year pension.

will my GIP be reduced by 75% of my Immediate Pension and I receive my pension as well ?
Is only the yeh GIP tax free ?

TIA.
 

Stibbon

Old-Salt
Can someone provide their expert opinion regarding GIP and Immediate Pension.

I’ve been awarded 30% Band D GIP when I leave, I’m not being MD and will receive a full 24 year pension.

will my GIP be reduced by 75% of my Immediate Pension and I receive my pension as well ?
Is only the yeh GIP tax free ?

TIA.

I'm no real expert in these matters but your monthly GIP (ie the injury payment awarded to you) is tax free. This will be 30% of your salary on discharge.

Your monthly pension (if you're not being MD'd) is just simply based on your final salary and time served. That will be taxed in the usual manner.

I'm unsure where you get the notion of a 75% reduction from but like I said, I'm no guru.

The Veterans Agency/DBS should be able to accurately answer your more searching questions ...
 
I believe the OP is correct. There is an abatement.

If you receive GIP and a pension the GIP is abated. If it’s a tax free pension it’s 100% (e.g if you receive a GIP of £40,000 PA and pension of £20,000 the GIP will be abated by the pension £20,000 so you receive a pension of £20,000 and GIP of £20,000 for a total of £40,000 PA).

If the pension is taxed the abatement is 75%, but I can’t remember if the abatement is applied before or after tax is removed (I suspect before).

Apologies I don‘t have a source for that info and as Stibbon mentioned above, you should contact Vets UK for a definitive answer.
 
thanks, I’ve had a look at a few JSPs and AFCS directives and the abatement looks like it may be the case which is a big disappointment. I’ve emailed the AFCS.
 
thanks, I’ve had a look at a few JSPs and AFCS directives and the abatement looks like it may be the case which is a big disappointment. I’ve emailed the AFCS.

Yep, it’s a big kick in the teeth. I completed 26 years so would have an immediate pension. The GIP is supposed to compensate for the work you can no longer do.

I’m quite a few bob short on pension alone.
 
Hi all,

Sorry for hijacking this thread,I just want to make sure I understand some of the differences in payments from AFCS claim.

So, medically discharged March 2019.
Initially awarded level 12 tariff however I appealed and have now been awarded level 10 (which I believe means I SHOULD receive GIP).

my age at time of discharge was 27, and my GROSS salary was approx 37,000. Is the gip calculated from the GROSS or NET income? Either way, does that mean my GIP will be back dated from Date of new decision, to my discharge date(28 months)?
Just hoping someone who has been through this process can confirm I have calculated correctly.

Also a time line from receiving the new award letter last week via email, to the payments being sent to me.

any info would be appreciated ☺️
 
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