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Questions on pension forcast

madpad_01

Old-Salt
Hello all,

Like most (I hope) I have left it to the last minute to look at my pension and see what I can expect. Went on the pension calculator typed the information requested and got a six page report back.

Read it first time and was totally confused. Read it a second time and still none the wiser. Hence I am now posting on here.

My questions are:

1. What does "Deferred pension at SPA" mean?

2. What does "If you opt to inversely commute your AFPS 15 EDP Lump Sum" mean?

3. I seem to have two totals on the commutation paragraph "Commutation additional lump sum payable at Exit" and "Commutation total lump sum payable at SPA" do I simply add the two together then add this total to the departure lump sum?

4. Finally what does "Reduced Deferred pension at SPA" mean?

Thanks in advance for any questions answered.
 
IIRC:

SPA State Pension Age 67.

Reverse commutation is that you opt to receive a lower monthly pension until the SPA, when you receive a second lump sum and then a higher monthly pension.

Normal commutation is that you receive a lower monthly pension for set period (under AP75 it was to the age of 55), but receive a higher lump sum on leaving.

someone is bound to come along with a more correct answer shortly.
 

Forces Pension Society

Sponsor
Sponsor
Hello all,

Like most (I hope) I have left it to the last minute to look at my pension and see what I can expect. Went on the pension calculator typed the information requested and got a six page report back.

Read it first time and was totally confused. Read it a second time and still none the wiser. Hence I am now posting on here.

My questions are:

1. What does "Deferred pension at SPA" mean?

2. What does "If you opt to inversely commute your AFPS 15 EDP Lump Sum" mean?

3. I seem to have two totals on the commutation paragraph "Commutation additional lump sum payable at Exit" and "Commutation total lump sum payable at SPA" do I simply add the two together then add this total to the departure lump sum?

4. Finally what does "Reduced Deferred pension at SPA" mean?

Thanks in advance for any questions answered.
Q1. Deferred pension at SPA means that you will have to wait until your state pension age to get it (unless you choose to claim it earlier (from age 55) at a reduced rate)

Q2. You can give up all of your tax free EDP lump sum to increase your taxable EDP annual income. If tempted, take a bit of financial advice. Money in the hand is very valuable!


Q3. Commutation additional lump sum at exit is the commutation that AFPS 75 members are used to considering. The commutation lump sum at SPA is the amount you could get as a lump sum from AFPS 15 when you draw your pension from that scheme. There is no automatic lump sum but you can chose to have one.

Q4. If you chose to take the maximum AFPS 15 lump sum your pension will become the 'Reduced Deferred Pension at SPA'

If you need this setting out for you in your personal circumstances, and you are a member of the Forces Pension Society, email pensionenquiries@forpen.co.uk. If you are not a member but want to know more about us visit www.forcespensionsociety.org.
 

Daxx

MIA
Book Reviewer
You are leaving and haven't worked out your pension before being sacked/signing off?

Have fun trying to get a real job.
 

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