When is the second lump sum payable?

Discussion in 'Armed Forces Pension Scheme' started by Resurgam, Jan 29, 2013.

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  1. I joined the 2005 pension scheme for all sorts of good reasons and expected to serve to the end of my time at 55yrs. Circumstances changed and I left early. I received the first lump sum when I left and was confidently expecting the second to appear at 65yrs o;d (if I made it that far!). Told wife to chuck me in the freezer until after my birthday if I did not!

    Talking with an old chum who was AGC(SPS) he said that I would get the lump sum at 60yrs old.

    That would be very helpful were it to be the case. Rather than ping off an email to the SPVA I thought I would ask here as the reply would be quicker.

    So any ideas dear friends.

  2. You can get it once you're 65, but you've got to contact SPVA first they won't just stick it in your bank account! I don't think there are many that transferred from AFPS75 to 05 if the truth be known!!!
  3. Thanks I thought he was wrong. Mind you as he was pretty senior I had a tiny hope that he was right.

    Bugger, will have to wait a bit longer for the mortgage free years!
  4. As an aside, what happens if I pop my clogs before then? Wife gets survivors pension I suppose, does she get any of the 65yr wad?
  5. The preserved pension and lump sum are due at age 65 but can be paid as early as age 55, although there will be actuarial reduction.

    So, for example, if you asked to have your preserved benefits paid at 55, you can expect to have your pension reduced by about 45% and your lump sum reduced by about 29%.
  6. If you haven't asked for your preserved benefits to be paid early, the lump sum is payable to the person you nominated on your Pens Form 1. The spouse/partner pension is normally 62.5% of the member's pension and is payable for life.
  7. Now I am showing my ignorance of the terminology. When I left the Army at 51 I got a lunp sum and a reduced pension, because I was on 2005. At present that pension is being paid to me.

    I am expecting that were I to reah the exalted age of 65 I will get a further lump sum, similar to the first and a rise in my pension to the figure that It would have been had I not left early. Am I right?

    Oh God I hope so!

    (who might not if I am wrong)
  8. What you got at 51 was your EDP lump sum and income stream. It is completely separate to the pension and pension lump sum which is payable at 65, unless you ask for it early with actuarial reduction. The pension lump sum will be the same as the EDP lump sum, only increased by CPI. Your EDP income stream will go up to a value equivalent to 75% of your preserved pension, so, at 65, your pension will be 33% higher than the income stream you had been receiving.

    These EDP benefits are not subject to pension sharing, so these percentages and equivalents would be different for those with a Pension Sharing Order.
  9. There will also be an increase on your EDP/Pension when you reach the ripe old age of 55! Also you then get the increases in the CPI...........KRRRRRRCHINGGGGGGGGG!
  10. Spot on!
  11. I noticed that being as I am now 57.

    The company pension I am earning now is nowhere near as good. But at least I have a job!
    This second bite of the cherry that is the lump sum - is it tax free? I ask as I am paying an extremely large amount of tax on the EDP pension type thing
  12. Yep again tax free! And of course you'll pay as it is technically a second income, why not just retire I did! Your tax free allowance should still be £8110 and will rise to £9445 this April!
  13. Would love to but Mortgage massive. Bought late as children's education was crippling!
  14. Roger, I was fortunate in that the kids had flown the nest and was able to use the lump sum to pay mine off! I did work part time for a bit but was paying out quite a bit of tax and so was working for peanuts, kicked it into touch after about three months. At the moment I'm trying to find out what increases in CPI have taken place since I left in June 2011 when I was 53, as I said in an earlier post at 55 you get all the increases!
  15. CPI 2011 SEP 5.2%
    CPI 2012 SEP 2.2%

    SEP CPI IS RAISE following April mine goes up each year due to ill health no waiting till 55