AFPS 15 with accrued AFPS 75 pension

[smilney]

Guys I have a question on pensions.

I have 34 years AFPS75 accrued and 3-months AFPS15 on leaving the RAF.

Am I correct in saying that my terminal grant and pension for AFPS75 remains the same and would be honoured within 30-days of leaving the military, in addition to this I would have 3-months AFPS15 EDP and 3-months AFPS15 pension either reduced or deferred. Which in my head would be a tiny amount for 91 days!

Very little info out there and at the time of leaving, no calculator to help with accrued pension and never received option of what scheme I wanted to join legacy or reformed prior to retiring before Oct 2023.

 

[Billy Whizz]

I'm in a similar boat and strangely enough contacted JPAC yesterday for an update to my annual Pension benefit (from Jan 22) as seems a little excessive, esp the lump sum. I also made this very point as part of the consultation, and yes, it did get a mention in the feedback report. How can we make an informed choice on pensions and future financial needs without the relevant info.

I think I'll just have to wait and see what arrives in my bank next Feb then join FPS and see what they suggest. I don't think we are able to influence anything at the moment but can retrospectively in Oct 23.

 

[smilney]

I'm in a similar boat and strangely enough contacted JPAC yesterday for an update to my annual Pension benefit (from Jan 22) as seems a little excessive, esp the lump sum. I also made this very point as part of the consultation, and yes, it did get a mention in the feedback report. How can we make an informed choice on pensions and future financial needs without the relevant info.

I think I'll just have to wait and see what arrives in my bank next Feb then join FPS and see what they suggest. I don't think we are able to influence anything at the moment but can retrospectively in Oct 23.

Billy, I got a message from JOAC yesterday asking me if I wanted to defer or receive reduced AFPS 15 part of my pension, not being too savvy on the whole thing with the changes I have asked them to phone me back as all my calculations were done on the AFPS75 solely. Annoying as I leave the RAF next week, still waiting on a reply.

 

[smilney]

Billy, I got a message from JOAC yesterday asking me if I wanted to defer or receive reduced AFPS 15 part of my pension, not being too savvy on the whole thing with the changes I have asked them to phone me back as all my calculations were done on the AFPS75 solely. Annoying as I leave the RAF next week, still waiting on a reply.

JOAC * JPAC

 

[Dan_Brown]

I'm in a similar boat and strangely enough contacted JPAC yesterday for an update to my annual Pension benefit (from Jan 22) as seems a little excessive, esp the lump sum. I also made this very point as part of the consultation, and yes, it did get a mention in the feedback report. How can we make an informed choice on pensions and future financial needs without the relevant info.

I think I'll just have to wait and see what arrives in my bank next Feb then join FPS and see what they suggest. I don't think we are able to influence anything at the moment but can retrospectively in Oct 23.

Why would you join the FPS AFTER you have selected how you want your pension paid and after receiving the lump sum?

Join them now and they will provide you with facts and figures and from there you will be able to make your choices based on factual information.

 

[Billy Whizz]

Billy, I got a message from JOAC yesterday asking me if I wanted to defer or receive reduced AFPS 15 part of my pension, not being too savvy on the whole thing with the changes I have asked them to phone me back as all my calculations were done on the AFPS75 solely. Annoying as I leave the RAF next week, still waiting on a reply.

Smilney, well that sounds a bit more positive if you dont mind me saying, maybe they are taking an interest in those leaving the Service right now and giving options - all be it very close to the date you leave. I may well get the options I need prior to receiving the Pension rather than a messy revision to AFPS75 later in 23.........

 

[Dan_Brown]

Join Now - Forces Pension Society

Join the Forces Pension Society today. It couldn’t be easier.

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Your application will be processed and then we’ll provide you with your Society membership number which is all you need to access our offers and the pension enquiry service.

£42 per year for sound financial advice about your pension.

There is loads of information out there, but yes, the calculator to take into the recent changes is still not live and not expected to be for some time

 

[Billy Whizz]

Why would you join the FPS AFTER you have selected how you want your pension paid and after receiving the lump sum?

Join them now and they will provide you with facts and figures and from there you will be able to make your choices based on factual information.

DB,

I was mulling it over, best use of £42 I guess. If JPAC dont know the McCloud remedy, why would the FPS? I've been to all the briefs, read all the literature and fed back to the public consultation.....no-one has the correct facts and figures, just that retrospective remedy with 2 options of 75 or 75/15 will be available around Oct 23. Doesn't help with no calculator and with a forecast of a massive lump sum if I stay on 75/15 but a much bigger annual payment if I revert to 75...........I just want to see the numbers

 

[Dan_Brown]

AFPS15 Remedy (McCloud) Sitrep - Forces Pension Society

All you need to know!

forcespensionsociety.org

 

[Billy Whizz]

Join Now - Forces Pension Society

Join the Forces Pension Society today. It couldn’t be easier.

forcespensionsociety.org

Your application will be processed and then we’ll provide you with your Society membership number which is all you need to access our offers and the pension enquiry service.

£42 per year for sound financial advice about your pension.

There is loads of information out there, but yes, the calculator to take into the recent changes is still not live and not expected to be for some time

From what I gather, I have no choice to make - I get what I'm given now and can then choose once the remedy is in place. I dont think the FPS are in a position to tell me the 2 different quotes.

I'm old school - you don't change a pension scheme to do anything than save money so why would 75/15 be more than reverting to 75?

If I had the option before I left, I'd make it

 

[Billy Whizz]

AFPS15 Remedy (McCloud) Sitrep - Forces Pension Society

All you need to know!

forcespensionsociety.org

Read that DB - doesn't answer my query, just says wait and see what the remedy brings!!!

 

[smilney]

Join Now - Forces Pension Society

Join the Forces Pension Society today. It couldn’t be easier.

forcespensionsociety.org

Your application will be processed and then we’ll provide you with your Society membership number which is all you need to access our offers and the pension enquiry service.

£42 per year for sound financial advice about your pension.

There is loads of information out there, but yes, the calculator to take into the recent changes is still not live and not expected to be for some time

Dan, as a member of the FPS I was given a forecast just on my AFPS75, I received an email from JPAC on Tuesday telling me that my Pen1 was now changed post 1 Apr 22 (I did mines end off 2021) to reflect I was now AFPS15 with Accrued AFPS75. They are asking me:

As you may not be aware, recent changes in scheme rules meant that you were moved to the AFPS15 scheme on 01/04/22. As you are discharging over the age of 55, you could qualify for an immediate payable pension in the AFPS15 scheme.

I am being asked if I want to receive the AFPS15 at reduced pension or if you would prefer a deferred pension that would be claimed at your State Pension Age.

As mentioned I only have 91-days in AFPS 15 upto my discharge, as I understand it my AFPS75 of 34-years is extant and will be honoured Termination grant and pension, the 91-days of AFPS15 in my head is not worth receiving as reduced and may as well just defer that until state pension age in addition I would imagine an AFPS15 EDP for 91-days is also minuscule in terms of a one off payment.

 

[smilney]

Smilney, well that sounds a bit more positive if you dont mind me saying, maybe they are taking an interest in those leaving the Service right now and giving options - all be it very close to the date you leave. I may well get the options I need prior to receiving the Pension rather than a messy revision to AFPS75 later in 23.........

I have asked the FPS for their spin on it, I think for my circumstances if I understand it correctly I would just defer the AFPS15 side of it as I have very little time in that scheme, my main concern is it doesn’t impact my AFPS75 accrued forecast.

 

[Billy Whizz]

I have asked the FPS for their spin on it, I think for my circumstances if I understand it correctly I would just defer the AFPS15 side of it as I have very little time in that scheme, my main concern is it doesn’t impact my AFPS75 accrued forecast.

Like you, I will have a very small post 1 Apr 22 "pot"......it is what to do with the interim from 1 Apr 15 - 31 Mar 22 I'm more concerned about. How does that gap compare reverting back to 75 or taking 15........Oh for a crystal ball or patience..............

 

[smilney]

Like you, I will have a very small post 1 Apr 22 "pot"......it is what to do with the interim from 1 Apr 15 - 31 Mar 22 I'm more concerned about. How does that gap compare reverting back to 75 or taking 15........Oh for a crystal ball or patience..............

Agreed mate, unfortunately for us that are leaving now, info and advice are sketchy.

 

[Dan_Brown]

Once the system has ‘caught up’, individuals leaving the military with entitlement to immediate benefits will make their election towards the end of their service. Those leaving without entitlement to immediate benefits will make their election just prior to their preserved/deferred pension coming into payment.

From 1 October 2023, personnel who decide to leave the Armed Forces will receive pension forecasts which will include both their legacy pension and AFPS 15 equivalent benefits for the remedy period (1 April 2015 – 31 March 2022). In the meantime, communication releases will update members on progress and timetable the intended activity to regularise this policy. Eligible members who exit the Armed Forces before 1 October 2023 (and thereafter until the system catches up) should plan to leave on their current pension terms and will be able to obtain a pension forecast from Veterans UK showing this.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1004636/McCloud_Update_-_July_2021.pdf

Our Top Ten Pension Q&A - Forces Pension Society

For Pension Awareness Week here's a taster of some of the questions we get in our pension enquiry inbox!

forcespensionsociety.org

I'm old school - you don't change a pension scheme to do anything than save money so why would 75/15 be more than reverting to 75?

I agree, but i recall a lot of WO's moving from 75 to 05 as they had done their research and 05 worked out better for them (so they tell me!) I've also had a colleague recently leave (34yr Sgt) who remained on the 15 pension as after his calculations, worked out better for him - 15 is also better than 75 for spouses/dependent benefits.

Again, FPS is the way forward as each persons circumstances and pension differ. My colleague was provided with a spreadsheet of figures for the differing pensions from the FPS.

 

[Dan_Brown]

As for the calculator, i wouldn't hold your breath:

"The McCloud public sector pensions remedy will be delivered in two stages - the prospective and retrospective remedy. The prospective remedy will see all service personnel move into AFPS 15 on 1 April 2022. The retrospective remedy gives Service personnel an opportunity to choose, when they access their pension or EDP, which pension benefits they will receive (legacy scheme, or the equivalent AFPS15 benefits) for the remedy period. This is referred to as Deferred Choice Underpin (DCU).The MOD is developing additional calculator functionality to assist members in making their DCU election. Once finalised, the enhanced calculator will enable most members to input data to forecast and compare scheme benefits to determine their relative values based on their individual circumstances. The new calculator will be of similar format to the current calculator but will generate two separate forecasts to help Service personnel understand the potential value of their overall pension benefits.

The complexity of the remedy has resulted in a number of cross government policy issues that are yet to be finalised and until these are resolved, we are unable to launch the calculator.Ensuring that the calculator is programmed with all the required details and reducing potential inaccuracies is paramount, therefore, we will not release an unfinished version. At this stage we are not able to advise when the calculator will be available but will keep members regularly updated on its progress.

Whilst we understand the frustration of this delay, it should not cause undue alarm as decisions will not have to be made until late 2023 at the earliest. Members will be given plenty of time and appropriate support from a number of sources, including the calculator, and the Benefit Information and Remediable Service Statement (issued by DBS Veterans UK in due course), to ensure the benefits they choose for the remedy period are most beneficial to them. Members may also wish to seek external financial advice. Future and ongoing McCloud announcements will continue to be released throughout the year." Ministry of Defence

 

[Billy Whizz]

Once the system has ‘caught up’, individuals leaving the military with entitlement to immediate benefits will make their election towards the end of their service. Those leaving without entitlement to immediate benefits will make their election just prior to their preserved/deferred pension coming into payment.

From 1 October 2023, personnel who decide to leave the Armed Forces will receive pension forecasts which will include both their legacy pension and AFPS 15 equivalent benefits for the remedy period (1 April 2015 – 31 March 2022). In the meantime, communication releases will update members on progress and timetable the intended activity to regularise this policy. Eligible members who exit the Armed Forces before 1 October 2023 (and thereafter until the system catches up) should plan to leave on their current pension terms and will be able to obtain a pension forecast from Veterans UK showing this.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1004636/McCloud_Update_-_July_2021.pdf

Our Top Ten Pension Q&A - Forces Pension Society

For Pension Awareness Week here's a taster of some of the questions we get in our pension enquiry inbox!

forcespensionsociety.org

I agree, but i recall a lot of WO's moving from 75 to 05 as they had done their research and 05 worked out better for them (so they tell me!) I've also had a colleague recently leave (34yr Sgt) who remained on the 15 pension as after his calculations, worked out better for him - 15 is also better than 75 for spouses/dependent benefits.

Again, FPS is the way forward as each persons circumstances and pension differ. My colleague was provided with a spreadsheet of figures for the differing pensions from the FPS.

This is part of the confusion, the 15 part of my 75/15 pension forecast looked too good to be true!!!!!

 

[Captain Kirk]

On a different note..
Free access to an IFA. Worth doing and very helpful. I had a guy from Leeds contact me and within a week of emailing I was done.

Forces Pension Society

Qualified Personal Finance Society members providing pro bono financial guidance to members of Forces Pension Society and their dependants.

www.thepfs.org

 

[ERT]

Has anyone seen an updated page for 2021/2022?

Other ranks pension benefits

www.gov.uk