Old Pension v New Pension

[Soon To Leave]

Although the pension is index linked, I believe the lump sum isn't.

 

[Realist78]

Although the pension is index linked, I believe the lump sum isn't.

This link details 2nd lump sum is 3 times pension + RPI uplift from the date you left.

 

[Teh Wal]

This link details 2nd lump sum is 3 times pension + RPI uplift from the date you left.

I'm guessing that link leads to something that's not accessable from a civvy network?
Yes, the 2nd lump sum (called the Pension Lump Sum) will be greater than the 1st lump sum due to RPI uplift on the EDPs at age 55 and the Preserved Pension payable at age 65. The amount paid out on both lump sums is x3 the Preserved Pension figure.

For example: when I left the mob 2 years ago my Preserved Pension payable from age 65 was forecast as being approx £12,660 per annum. That figure did not take into account the RPI uplift that will happen when I hit 55. So there is the potential for my Preserved Pension to be (for arguements sake) £15,000 per annum.
My EDP Lump Sum (the 1st lump sum) was based on the Preserved Pension forecast at the time and was in the region of £38,000. The Pension Lump Sum will be recalculated at the point of awarding it (i.e. when I'm 65) based again on 3 times the Preserved Pension figure and could potentially be £45,000.

I made sure of all my facts at the time of my calculations purely because it was such an important decision to make with far reaching financial implications.

Here's a link to the AFPS05 booklet if anyone wants to have a look at it: http://www.mod.uk/DefenceInternet/A...s/AFPS05/Afps05YourPensionSchemeExplained.htm

And here's another link to an FAQ leaflet:
http://www.mod.uk/DefenceInternet/A...PensionScheme2005FrequentlyAskedQuestions.htm

 

[Soon To Leave]

Cheers Realist 78

I stand corrected. RPI IS applied to the lump sum.

 

[firestorm]

I wonder what's in store for pensions after the election?

Be afraid, be very afraid.

 

[Realist78]

I wonder what's in store for pensions after the election?

Be afraid, be very afraid.

I believe that they can only instigate changes for new entrants. That said, the dishonourable tw@ts that inhabit westminster are not to be trusted with an oven ready chicken.

 

[firestorm]

I believe that they can only instigate changes for new entrants.

Oh how I wish that was true. I know they've tinkered with our pensions (public sector) for a while now. They withdrew all ill health pensions a while back, only to have law lords tell them they should reinstate them.
Rumours abound with us. The biggest rumours are the increase in contributions, taxing of commutations and forcing those of us on the old scheme to join the new one, thus forcing us to work longer for a worse commutation and smaller pension with less benefits. We reckon they'll try this when we are in a minority.
They are evil, like an angry old Chihuahua on speed.
All it takes is a change in the law.

 

[Realist78]

I'd like to think that our pensions are safe. However, as you have commented on in the past, your pensions have been tampered with, who's next?

 

[Mug?]

changes

changes

there have already been many changes to both 75 and 05 already, I think years after 06 will only count towards pension after age 65 now was 60 for years earn't before.

Changes allowed but stuff earnt should not be effected.
I.E preserved pension payable will be different for someone who served a long time before 06 will be different to someone serving the same length but after 06.

 

[Digzster]

This link details 2nd lump sum is 3 times pension + RPI uplift from the date you left.

Realist78,

Any idea if the RPI uplift still applies if the recipient is no longer living in the EU? I can't find anybody who can give a definite answer to this one. The state old age pension does not accrue any updates at all outside of the EU currently, however this is being challenged in the courts at this time.

 

[Realist78]

Realist78,

Any idea if the RPI uplift still applies if the recipient is no longer living in the EU? I can't find anybody who can give a definite answer to this one. The state old age pension does not accrue any updates at all outside of the EU currently, however this is being challenged in the courts at this time.

In short, I don't know the answer to that one...but I can guess!

 

[Digzster]

In short, I don't know the answer to that one...but I can guess!

I think I can also guess that one as well. Thanks for the reply anyway, it was worth a shot.

 

[Teh Wal]

Realist78,

Any idea if the RPI uplift still applies if the recipient is no longer living in the EU? I can't find anybody who can give a definite answer to this one. The state old age pension does not accrue any updates at all outside of the EU currently, however this is being challenged in the courts at this time.

Hmm, wouldn't a quick phone call to the Pensions people, or an email maybe, get an answer to this one? I seem to remember this being raised at the finance briefing I attended before I left but unfortunately I can't recall the answer or facts.