Discussion in 'Finance, Property, Law' started by GrumpyGit, Feb 14, 2008.

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  1. Can anyone advise what exchange rate is used by the "system" when you elect to have your UK military pension sent to an overseas bank account? Is it the prevailing commercial rate, FFR or what?
  2. I'd be a bit surprised if you can get the pension sent overseas; its expensive and most schemes pay into a UK bank account.
  3. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Paymaster pay your pay pension:
  4. Slightly off topic but might be of interest. I believe that if you emigrate (depending on which country you've moved to) your state and military pension will be frozen.

    A family friend, a WWII veteran, emigrated to Canada about 20 years ago and has never had an increase in his pension since.

    Something to bear in mind if you retire to another country and the Government knows about it.
  5. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Incorrect only your state pension is frozen.
    Another thread here:
  6. My mistake :oops:
  7. Great post.

    I think that information like this will be very usefull for the many people who plan on jumping ship once they have done there 22.

    How about a Retirement sticky in this section??
  8. My advice is this: If you can afford it then leave it in your UK Bank account which will get taxed accordingly - If not the Paymaster will pay your gratuity to a foreign bank of your choice at the FFR rate however your pension rate is determined by the commercial rate - ie not very good at the moment 1.34 if you live in a Euro country. So to make a little dosh, tranfer your gratuity only to take advantage of the FFR rate.

  9. Anyone any idea of the FFR Euro rate?
  10. 1.3 in NAAFI today
  11. Thanks Filbert, but 1.3 what? (there is a whole world of difference between 1.30 and 1.39).

    As an aside, I have just spoken to Xafiniy Paymaster who inform me that to send my military pension abroad each month through Citibank will cost me £2.60 per month. Citibank using the business exchange rate which is obviously much beter than the tourist rate, but I am now considering having my pension paid to a UK bank each month and then once every six months getting it transferred to my foreign bank account using Currencies Direct who charge nothing for amounts over £5000 - just a thought at the moment, I have 9 months (and counting) to work it out!
  12. FFR is 1.40
  13. FFR is only for Mil, dep and civ component and is currently £=€1.40
    BFPO rate £=€1.34 if post office use allowed.
    Com rate today was £=€1.31.
    There are big differences as I found when I left. You will have to pay some tax on your monthly pension in UK or country of abode if you opt for transfer these rates of tax also vary. :x
  14. and the NAAFI rate is in a world of its own.
  15. You would have to ask the PMG for the exact rate they use. Their rate and charges are a good deal apparently. At the moment the Pound is down to about € 1.30 or maybe a bit more.

    If residing in EEC countries, UK Inland Revenue will tax at the appropriate rate minus the personal allowance. There is also no NI contribution (11%)payable. What the local tax authorities do is a different matter. Here in Germany I have no further tax to pay. I have had this confirmed by 3 independant sources including my tax advisor. This means I get a lot more of my pension than if I were to reside in UK, nice little bonus.