Medical Discharge P8 AFPS 75/15

[A Nother Cog]

Looking down the barrel of a P8 full med discharge and trying to get my head straight:

Feb 2003 - April 2015 ( CPL ) = 12.08 years - AFPS 75
April 2015 - Sept 2019 (possible discharge date, SGT) = 4.4 years - AFPS 15
Final Pensionable Earnings = £37 550

MO reckons straight forward, Tier 1.

Regardless of an AFCS claim, can anyone let me know if i'm in the right ball park??

AFPS 75 - Advanced ill health pension £6 801 a year - Based on Invaliding Pension Code List serving on 31st March 2015, OR 4, 12 Years.
Lump sum £20 403 - Based on 3 x Annual ill health pension.

AFPS 15 - £37550 (FPE) ÷ 1/8th x 4.4 (years served) = £20 652 Lump sum.

So...... Lump sum of £41 055
And....... Annual Invaliding Pension of £6 801, is any of this commutable?

(IF I have worked it out correctly and it's not critical that I have)

All help, criticism and scepticism welcomed

 

[spaz]

I'm quite possibly wrong but I didn't think that you could commutate an MD pension but on the plus side it's tax free.

 

[Señor Totoff]

@A Nother Cog

https://www.arrse.co.uk/community/threads/medical-discharge-and-afps75.285554/

<<The Forces Pension Society is your independent not-for-profit pension watchdog, fighting for the interests of the Armed Forces and their families.>>

Forces Pension Society - Fighting for the Forces and their Families

 

[Forces Pension Society]

Looking down the barrel of a P8 full med discharge and trying to get my head straight:

Feb 2003 - April 2015 ( CPL ) = 12.08 years - AFPS 75
April 2015 - Sept 2019 (possible discharge date, SGT) = 4.4 years - AFPS 15
Final Pensionable Earnings = £37 550

MO reckons straight forward, Tier 1.

Regardless of an AFCS claim, can anyone let me know if i'm in the right ball park??

AFPS 75 - Advanced ill health pension £6 801 a year - Based on Invaliding Pension Code List serving on 31st March 2015, OR 4, 12 Years.
Lump sum £20 403 - Based on 3 x Annual ill health pension.

AFPS 15 - £37550 (FPE) ÷ 1/8th x 4.4 (years served) = £20 652 Lump sum.

So...... Lump sum of £41 055
And....... Annual Invaliding Pension of £6 801, is any of this commutable?

(IF I have worked it out correctly and it's not critical that I have)

All help, criticism and scepticism welcomed

I wish it were that easy.

From AFps 75 a pension based on your length of membership of that scheme, your rank for pension on discharge and the pension code in force at the time. They work the pension out as 2.75% of the full career rate for your rank for pension multiplied by the length of service then they add on a proportion of the difference between the pension they have just worked out and the invaliding rate (so in your case 12.08/16.48ths ). Lump sum 3 time pension. You cannot commute.

That is the easy bit.

AFPS 15 has 3 sums to do:

Point 1 is 1/8 pensionable earnings (PE) x length of service. (£20,652.50)

X = (1/2 x PE) times length of service since 1/3/15 (4.4 in your case), then divided by total service (16.48 in your case). If Point 1 above is less than X, X is paid. (£5,012.74)

Y = (2xPE) times length of service since 1/3/15, then divided by total service. If Point 1 above is more than Y, then Y is paid. (£20,050.97)

In this case Point 1 is more than Y, so Y is paid.

Keep an eye out for November's Pathfinder Magazine as we have written an article on this.

 

[A Nother Cog]

[QUOTE="From AFps 75 a pension based on your length of membership of that scheme, your rank for pension on discharge and the pension code in force at the time. They work the pension out as 2.75% of the full career rate for your rank for pension multiplied by the length of service then they add on a proportion of the difference between the pension they have just worked out and the invaliding rate (so in your case 12.08/16.48ths ). Lump sum 3 time pension. You cannot commute.[/QUOTE]

AFps 75 length of membership 12.08 years, OR4 as the scheme ended, pension code in force @ 31 March 2015 = £6 801 a year.

Full career rate for CPL @ 24 years (VEngFull) = £11 335

2.75% = £311.71

Multiplied by 12.08 (length of service) = £3 765.48

12.08/16.48ths of £3 765.48 = £2 760.13

Annual - £6 525.61
Lump sum - £19 576.83

Or have I not understood again???

Really appreciate the help

 

[Forces Pension Society]

the full career rate is the 37 yr rate for your rank for pension.

I am sorry this is so complicated but it does explain why the Society is so busy.

 

[A Nother Cog]

@Forces Pension Society, I understand the Society is not only an extremely valuable and appreciated tool but also very busy one. Your help is massively appreciated.

To help calculate, Which Tri Service pension code list would I use?

I've found them on the Gov UK website.

Do I use the figures for a 37 year rate as at the rank I was when 75 ended (so the 2015/16 Codes) or the 2018/19 Codes as this is when I will be discharged? Is the attachment the right coed?

Which codes were used to calculate the example in Pathfinder Nov 18?

 

[Forces Pension Society]

It is the Standard Rates in the 2018/19 Codes that you use. It would have been the 2018/19 code that was used for the Pathfinder article. The code was late being published due to the late announcement of the pay rise but I am pretty sure it was out then.

 

[A Nother Cog]

It is the Standard Rates in the 2018/19 Codes that you use. It would have been the 2018/19 code that was used for the Pathfinder article. The code was late being published due to the late announcement of the pay rise but I am pretty sure it was out then.

Brilliant, Thanks for the speedy reply!

 

[7006dave]

Tier 2 afps 15 can cummute upto 25% to give a lump sum