Pension and the lump sum

[GOV1]

I am due out next year. 30 LOS completed. I will be 51 and a half on exit day.

If I commute my full allowance to get the higher lump sum, my monthly payments drop. I understand all that.

Question is "at age 55 and after will the monthly payments stay the same after I commuted or will it revert back to the original amount plus inflation if I didn't commute?" The latter I hope!!

I have asked PSF and looked in the 752. No luck!!

Any help?

 

[shettie]

If you are on the same pension as me - the "'75" version... - At age 55 your pension will increase to the "normal" amount plus any incremental increases that have been awarded in the intervening years between your discahrge and your 55th birthday (and very nice it was too...) Not sure what the other pension schemes do though...

I commuted fully - taking the largest lump sum that I could in 2001, my pension recently went up by approximately 40% on my 55th birthday.

 

[Teh Wal]

Page 14 of this booklet, under "Resettlement Commutation" mate: --> https://www.gov.uk/government/uploa...ps75_mmp106_your_pension_scheme_explained.pdf

"There will be a compensating reduction in your pension, which will be restored to its original value at the age of 55"

 

[Dan_Brown]

PSF didn't know this? And after consulting the JSP fobbed you off? Did they suggest you call the help desk?! lol!

I know Mutty and some others are all over their trade, so not tarring all with the same brush - but feck me why do they not know their job? They have so many training days and reduced working hours that they all should be admin ninjas!!

My sections workload has increased recently and we are regularly travelling many miles with some overnighters, coupled with courses i called PSF to ask about claims/entitlements etc; i rarely get a straight answer or the same answer from 2 different people

 

[Vauxhall]

I am due out next year. 30 LOS completed. I will be 51 and a half on exit day.

If I commute my full allowance to get the higher lump sum, my monthly payments drop. I understand all that.

Question is "at age 55 and after will the monthly payments stay the same after I commuted or will it revert back to the original amount plus inflation if I didn't commute?" The latter I hope!!

I have asked PSF and looked in the 752. No luck!!

Any help?

The earlier post gave you the correct answer about what happens at age 55. I thought it worth mentioning that the Financial Aspect of Retirement briefing covers this and a lot more, and is well worth the investment of your time. We, (The Forces Pension Society www.forcespensionsociety.co.uk ) present the first part which is all about AFPSs, family benefits, commutation, tax, NI, etc. A financial advisor delivers the second part which is all about anything else with a pound sign in front of it. Details of dates and venues are available from you Resettlement Office.

 

[GOV1]

Thanks for all the replies.

The future is bright.

 

[justintime129]

The increase at 55 certainly makes life more comfortable. Lots more holidsys lol

 

[tommo9999]

With the demise of the RAF Pensions office at RAF Innsworth, PSF staffs were advised, on legal grounds, not to provide any pension advice and should direct all enquiries to SPVA to prevent compensation claims from departing service members. Whilst lots of us do know plenty about pensions and can provide generic advice, the specialist stuff should be provided by SPVA.

 

[Dan_Brown]

But he did ask for generic advice - does the pension go up at age 55? No mention of wanting actual figures. Also PSF don't appear to have mentioned going to SPVA anyway.

 

[tommo9999]

Aye fair comment, I'm not defending the clerk as I would have been able to provide the answer straight away and would expect others to do the same. My post was just to provide the background to our inability to provide specialist advice.

 

[UlsterExile]

I got out last year, the best advice I could offer is write to the pension branch in Scotland and give them all the information and possible scenario's. I got a response back within 15 days, all the figures were based on the date and figures I provided. when I came to leave and start again they were within £50 of what I am currently getting.Do not do what some else did and just read the booklet and he ASSUMED what he was getting on AFPS 05. He gets nothing at the minute, until he hits 55 and that is 13 years away. He missed £30,000, he put a brave face on it, but we reckon OC House gave him what for. And to top it all off he's an Adminer TG17!!!!!!!!!

 

[Teh Wal]

"Do not do what some else did and just read the booklet and he ASSUMED what he was getting on AFPS 05. He gets nothing at the minute, until he hits 55 and that is 13 years away. He missed £30,000"

I read that 3 times but still don't understand what you mean, could you expand on that please mate?

 

[Vauxhall]

The AFPS 05 preserved pension age is 65 - although that pension could be claimed early with actuarial reduction. If someone claimed their pension at 55 (which is the earliest age at which HMRC say a pension can be claimed) if would be reduced by nearly 45% to take account of it being in payment for 10 yrs more than the actuarial assumption.

 

[Sensible Head]

Don't forget, everyone is entitled to 1 free official pension forecast from SPVA (renamed last week of course) every 12 calender months. Additional forecasts cost £75 +vat. Application forms are on the pension calculator homepage. I recently had queries about option point pension implications and got my free forecast in order to confirm I had used the internet calculator correctly. Forces Pension Society very strongly recommended - no-one else has your back !

 

[Mug?]

pension calc

pension calc

I am due out next year. 30 LOS completed. I will be 51 and a half on exit day.

If I commute my full allowance to get the higher lump sum, my monthly payments drop. I understand all that.

Question is "at age 55 and after will the monthly payments stay the same after I commuted or will it revert back to the original amount plus inflation if I didn't commute?" The latter I hope!!

Any help?

The pension calulator is still going. looks a bit flashier now.
www.mod-abc.co.uk
Stick your details in and it will give you a rough guide. even says on it
Reduced Immediate Pension (until age 55)
As said i would get a forecast to make sure there are no nasty surprises!
With the transitional arrangements it may be very close to your dates?