RETROSPECTIVE CHANGE TO AFPS 75

Are our pension benefits being eroded by sleight of hand?

  • My pension is being stolen.

    Votes: 0 0.0%
  • The Armed Forces pension scheme fairly rewards me for my service.

    Votes: 0 0.0%

  • Total voters
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#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?

ARMED FORCES PENSION SCHEME (1975) AFPS 75 - AMENDMENT TO COMMUTATION AMOUNT

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.

http://defenceintranet.diiweb.r.mil.uk/NR/rdonlyres/5EC480EC-0A23-4108-8850-EE7B336D4CB4/0/01018.pdf
 
#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!
 
#7
g2_rocketman said:
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!
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.
 
#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.
 
#13
terminal grant in full.

max commutable now = 25% of terminal grant & 25% of pension (post A day)
 
#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?
 
#16
Goon,

Your term grant is not and never has been "commutable" it is a lump sum of 3 times your immediately payable pension, resettlement commutation is basically a loan which enables you to get a lump sum which, when added to your terminal grant, equates to 3 times what your pension would be if you completed a fuul career (34/37 years). This is then re payable (with interest although not called interest) from your pension between your discharge date and your 55th birthday. THe remaining pension used to have to leave a minimum of 50% of your originally awarded pension, now it has to be a minimum of 50% of pension earned before 6 Apr 05 and 75% of our pension eaned since 6 Apr 05.

This will have no effect on the vast majority of people no non comissioned ranks will suffer financially.

PW
 
#17
its actually 12.5% of the overall pension pot - the point is, the 25% will now include contributions from the terminal grant (in the eyes of the treasury it is seen as a pension benifit and 'termainal grant' is just another name for it) - bottom line is, as you rightly identify, very few people will be actually affected.
 
#18
Terminal grant under AFPS 75 is 3 times immediate pension.

I agree that the way this has been "announced" is a bit underhand as is the norm these days! But there is a lot of unnecessary scaremongering going on over various forums.

PW
 
#19
The very reason there is scaremongering is that it has been badly/ not briefed. In the absence of fact, rumour will rule.

Badly managed.......... not surprised.
 
#20
H_V - very true - but there are a number of people who should know better!

By the way, just heard there is a plan to stop producing hard copy DINs. Whilst this will save a fortune (at the centre) on paper and printing costs, I can't help thinking there will be even more of a chance for individuals missing out on briefings and more opportunity to slip things "under the RADAR"!!!
 

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