Pension start date - MD

Discussion in 'Armed Forces Pension Scheme' started by Tiddle, Feb 6, 2009.

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  1. Righty dokey, I'm after some pension help from the gurus on here as every I've heard so far is as clear as mud.

    I had my med board back in sept and just had my confirmation letter today (I've been on sick leave & resettlement since then), it seems that my pay will stop effective the 23/04/09 and I assume that any pension will start the next day.

    My injury occurred in 2002 and again in 2003 so I don't qualify for the compensation scheme so what should I expect ref pension? Not figures wise but actual what actual pension will I receive? War pension, service pension, both? Tax free or tax paid and will I receive a gratuity? I've done almost 9 years.

    I know that there are loads of variables that will effect any pension that I do receive but just a broad out line would be a big help.

    Thanks all, Tiddle.
     
  2. Hi,

    Have a read of this thread that I posted: http://www.arrse.co.uk/cpgn2/Forums/viewtopic/t=115731.html
    I was also MD Discharged on the 23 of a month and this is when I get my payments.

    As your discharge date is the 23/4/09 your last pay packet for that month will hit the Bank on Thur 30 April.

    Your first SIP (Pension from AFPS) will probably be paid around the 9th of May.

    Your Gratuity will hit the bank about 5-7 days after the 23/4/09

    As for your War Pension award this all depends on Norcross. I received notification of my percentage of award a couple of days after my discharge date. The War Pension element is then paid 4 weekly (you can opt for weekly if you want) so it works out that you get 13 payments of this during the year.

    As on my other post, after SPVA have made a percentage of award, 20% plus for a War Pension regular payment, at the same time that they notify you they also send a copy of the award to Glasgow (AFPS). Once AFPS recieves it they will look at it and decide if your SIP to be made Income Tax Exempt.

    Once/If they do, they will notify both you and Xafinity (Xafanity are the ones that pay you your SIP). Xafanity will send to you a pay statement, but your first payment will probably still be taxed, mine was about £800 and I paid £10 tax.

    Both elements are paid by different departments.

    1) War Pensionm which is made up by your percentage of disability/illness is paid by SPVA at Norcross. 4 weekly

    2) Service Invaliding Pension (SIP) is paid by AFPS Glasgow through Xafanity Paymaster at Crawley. This is paid on the same date every month.

    IF, and a strongly advised IF, you apply for Disability Living Allowance from the Department for Work and Pension's, if/when your claim is awarded this is also paid 4 weekly.

    Best bet it to read my link at the top. Download the pages relevant, SIP, SAP, Gratuity - Print them off and read them in conjunction with the post at my Link. If it's all still as clear as mud get back to me with a PM.
     
  3. Thanks H_I_A_B, I have read you post but I'm still unclear on a few points:

    What's the difference between a SIP and SAP? what one would I be entitled to?

    If my "disability" is rated over 20% then both my SIP and WP will be tax free, is that correct? I should expect a gratuity of three times my SIP?

    If my "disability" is under 20% I'll still receive a WP but receive a one time payment in place of my SIP?

    If I've served under 9 years at OR3 I WILL receive £3779 per annum from my SIP at the current pay scales? Is that correct?

    Can the SIP be commuted the same as the normal pension? ie 50% up front?

    If so, how is this calculated, 50% of your annual pension up to the age of X (ie when the army expect you to peg it!)

    I'm really if it seems that I am asking bone questions, I'm only 28 and I really didn't expect to be dealing with a pension at this tender age!
     
  4. Surely if your disability is 19% or lower youll get no war pension, just the one time low amount pay off like everyone else who is 19% or less, also no Veterans Concessionary Travel Card and only be exempt perscription charges for meds required for the conditions named on your notification 'cert'.
     
  5. The whole process is very confusing. Here is a quick example:

    IF you are awarded a percentage of 20% or more from the SPVA. You would get two payments every month.

    1) One payment is for your SIP/SAP (but you don't get both of these) and it is paid by Xfanity Paymaster on behalf of the AFPS

    2) The second payment is for your percentage and is paid 4 weekly by the SPVA (This is what is commonly referred to as a War Pension)

    What's the difference between a SIP and SAP? what one would I be entitled to?

    A SIP is your Service Invaliding Pension. This is "The MINIMUM" that you may get when MD'd under AFPS 75. You have to be on AFPS 75 and have served longer than 5 years and be being MD'd for an injury/illness that was aquired before AFCS came in in April 2005.

    If your answer to that question is, Yes. Then have alook at the SIP Payments table. SIP Payment Table PAGE 9

    Running down the left hand side is the 'Years Served' column and running across the top is the 'OR' ie Rank. where the two cross that is your SIP.

    So if you are a OR-6 with 20 years service you would get a SIP of £9926

    If you are MD'd and NO Percentage award is given by the SPVA that is the amount that you will get. Taxable.

    If the SPVA make a percentage award GREATER than 20% you will recieve an ADDITIONAL War Pension Payment from the SPVA. It goes up in multiples of 10%'s. So if you had a Percentage of 50%. you would recieve an ADDITIONAL £72.55 per week on top of your SIP.

    This is where it can get confusing.

    If your percentage is high (See PAGE 10 SAP)
    OR-6 at 80% £11254 then the amount of the SAP is greater than the SIP (£9926) If this was the case you wouldn't get a SIP, You would get the SAP as it is greater. And you would also get the War Pension payment at 80% which is £116.08 per week.


    If my "disability" is rated over 20% then both my SIP and WP will be tax free, is that correct?

    Your War Pension (the payment from the SPVA) is TAX EXEMPT.

    Once the SPVA have processed your case they will send you a letter notifying you of your percentage award (if one is made) and at the same time they will send a copy of this letter to the AFPS at Glasgow (AFPS is who pays your SIP or SAP). If your percentage is high AFPS will award you a TAX Exempt SAP, If it is lower then they will look at your SIP and see if you are justified in having the SIP made Tax Exempt. From what I can make out most SIP#s are paid tax free.

    I should expect a gratuity of three times my SIP?

    Roughly, yes that is correct. You will get a AFPS Form 1 in your Service leavers pack, it is important that you fill it in and send it to them. It's a complicated form so I would strongly advise you to ring the JPAC Pensions section, they are really helpfull.

    If you get a percentage award you will also get an ATTRIBUTABLE GRATUITY. This is paid for your Primary Invaliding Condition (PIC). What that basicly means is this, if you are invalided with TWO conditions you will get a Percentage for both, e.g. Bad Knee 20% Knackered back 40%. The Knackered Back would PROBABLY be classed as you PIC, to that end you would get an ATTRIBUTABLE GRATUITY at 40%. OR-3 = £4319 See Page 11

    If my "disability" is under 20% I'll still receive a WP but receive a one time payment in place of my SIP?

    No, wrong way round. You'll recieve a SIP but will only get a one-off payment from the SPVA. Not sure about the TAX STATUS for awards under 20%

    If I've served under 9 years at OR3 I WILL receive £3779 per annum from my SIP at the current pay scales? Is that correct?

    Yes

    Can the SIP be commuted the same as the normal pension? ie 50% up front?

    No, you cannot commute a SIP [Read AFPS Leaflet 9]

    If so, how is this calculated, 50% of your annual pension up to the age of X (ie when the army expect you to peg it!)

    ?

    I'm really if it seems that I am asking bone questions, I'm only 28 and I really didn't expect to be dealing with a pension at this tender age!

    Don't worry fella, I done 23 years and the MD and Pension process fecked my skull to. I've typed this up pretty quick so I hope that it makes sense...

    If unsure you are best advised to ring the JPAC: 0800 085 3600

    TOP TIP - Don't account for any of this until the money's safely in the Bank