Discussion in 'Finance, Property, Law' started by Talking_Acorn, Oct 23, 2007.

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  1. My pension is being stolen.

    0 vote(s)
  2. The Armed Forces pension scheme fairly rewards me for my service.

    0 vote(s)
  1. I have only just become aware of this significant change in the terms of my pension. All my fellow officers seem to have missed it a well. It seems odd that the changes alluded to below were known (Finance Act 2004) when we were being briefed on change of pension choice but the illustration on the pensions calculator was still set to 50%.

    Have I misunderstood?


    2007DIN01-018 refers. The DIN relates to a change in the amount of Resettlement Commutation that you can apply for prior to discharge. Any service that you gave before 6 Apr 06 allows you to apply to commute 50% of your pension earned until 55yrs of age as a lump sum on discharge. The Finance Act 2004 changed these rules wef 6 Apr 06. Effectively any service before that date still allows you to commute 50% of your pension earned until 55, any service after 6 Apr 06, you can only apply to commute 25% until 55yrs of age.

    The Pension Calculator which is on-line still shows you the figure worked out at 50%. This software is due to change in due course.
  2. IS Ski Geek

    IS Ski Geek War Hero Moderator

    Glad we were informed about this prior to having to choose which pension scheme to go on. About right give us all the facts after the date.
  3. Gentlemen, gentlemen, we should all be grateful that our much loved and unelected supreme leader has deigned to futher erode our terms and conditions of service so that those who have never worked or paid tax can be kept in the manner to which they are now accustomed.

    How else are we meant to pay for his great economic miracle and his international socialist paradise.
  4. Is this legal? Im not an expert, but shouldnt some spotty human rights lawyer called adrian be able to find some european legislation that guards against this sort of employment contract gerrymeandering.

    Mind you if not at least the extra tax the governments made out of it should cover what they shelled out for our operational "tax free/tax back" bonus introduced last year...........and probably then some!
  5. There is at least another two threads on this already if you cared to look
  6. oldbaldy

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

  7. Apparantly its to bring us in line with the Financial Services Act 2004. This act was drafted to comply with the usual EU directives of which Broon and his cronies are so fond. (They are unaccountable).

    Things will only get worse.
  8. It was also well timed to coincide with the Op Allowance.
  9. Acorn

    good point on a trojan horse. I posted a linked query on this earlier this week - we were told (as one of a big audience) that we would receive an annual pension forecast once the new scheme was introduced. This was important because it would confirm that the scheme we had elected for was (in reality) the one recorded (don't laugh but my 1* was wrongly recorded as transferring to the new scheme). I am still awaiting my first statement - are you ? I have no idea what I can now exect to get on retirement......that was a key part of the briefing.

    If the print out on the forces pensions calculator and the initial print out you were given was wrong (one of 2 because the first one issued was wrong - hardly reassurring) then I would pass it to your solicitor for miss selling.

    Top man on any legal issue is Gilbert Blades in Lincoln who consistently beats all the MOD laywers.
  10. Just a point from a (ex forces) civvy point of view.

    These changes are not to the AFPS as far as I'm aware, they apply to ALL pension schemes.

    My company had lots of meetings, explinations, leaflets and projections to keep us informed - good to see that the MOD is keeping up their usual standard of care to its employees..... 8O
  11. yes it is 25% not 50% max commutation, but it WILL now include 25% of terminal grant.

    Terminal grant is 12.5% of total pension fund.
  12. IS Ski Geek

    IS Ski Geek War Hero Moderator

    So its now 25% terminal Grant and 25% max commutable ?
  13. terminal grant in full.

    max commutable now = 25% of terminal grant & 25% of pension (post A day)
  14. IS Ski Geek

    IS Ski Geek War Hero Moderator

    Cool so actually no real change. Just the fact that the info was a bit under the radar.
  15. my understanding is that there will be no major change, and actually, some people may be better off - however, this doesn't mitigate for the disasterous way in which the whole thing has been handled and the 'illegal' OTT packs being issued.

    It's totally unacceptable for the pensions calculator to still be wrong.

    I guess the reason why is because there's too many senior people who don't have areal grasp on money, pensions and finance?