Extract from the 2011 AFPS Newsletter below.
The last 2 paragraphs might be relevant; could be you have not been informed of any dual payment or recovery of same. If this is not the case, there is something a bit more disturbing going on for those of advanced years (I'm only 4 behind you, so will stay alert on this topic).
The Social Security Pensions Act 1975 introduced the State Earnings Related Pensions Scheme(SERPS). The AFPS contracted out from this scheme but, by law, had to pay a pension benefit atleast as good as that paid out by SERPS. This amount is known as your GMP.
Her Majesty’s Revenue & Customs (HMRC) National Insurance Contributions Office (NICO) advise XP how much of your pension the GMP amount forms at State Pension Age (SPA). Please note that this is not an additional amount to be paid, as it forms part of your existing pension.
Men can currently claim their State benefits at age 65. From April 2010 SPA for women began to increase from 60 and from April 2016 the pace of SPA equalisation increases. Women’s SPA will therefore reach 65 in November 2018, and from December 2018 SPA for both men and women will start to increase to reach 66 by April 2020.
When you claim your State retirement benefits the Pensions Service, which is part of the Department for Work and Pensions (DWP), is responsible for paying part of any annual pension increase on your GMP with your State benefits. This addition will be shown on your annual pension statement received from The Pensions Service, who may refer to GMP as Contracted Out
Deductions (COD). XP must allow for this when calculating any increase on your pension to avoid you receiving an increase on the same amount of GMP twice.
Therefore although women’s GMP payment age will remain at 60 the AFPS must fully inflation proof their GMP to SPA, and adjust their annual rate of AFPS pension to exclude the GMP increases paid by the state from SPA.
GMP may be in two parts, for the period 5 April 1978 to the date you left the Armed Forces (or 5 April 1988 whichever is the earlier) and for the period 6 April 1988 until you left the service (or 5 April 1997 whichever is the earlier). XP will apply any increase to the part of your GMP that was earned after 5 April 1988 and pay this with your Armed Forces Pension, but only up to a maximum of 3%. Any increase above 3% and all of any increase on the GMP amount earned before 6 April 1988 is paid by DWP with your state benefits. However, a further change in the law (Pensions Act 1995) means that XP will pay any increase in full on all the benefits earned after 5 April 1997.
Unfortunately, on occasions HMRC NICO does not advise XP of the value of your GMP in time. If this happens it may mean that you receive an increase on your GMP with your Armed Forces Pension and your State Pension, which in turn will result in you being slightly overpaid. XP will have to adjust your pension payments later to take this into account. You will, of course, be notified in advance of this happening.
Mr B