RAF Pension - no increase this year?

[MPN11]

I've just had my annual printout from EQUINITI, advising me of my Service Pension rate for 15 Apr 2016 and onward.

HELLO??? The same payment as it was for 15 Apr 2015 and onward, so therefore no increase?? :eek:

Does Inflation = Zero, or have I missed something? Any Pension Wizards care to comment?

Disconcerted of Offshore

[Herod]

Quote. "The decision is based on the Consumer Price Index (CPI) in September of the preceding year. As the CPI was minus 0.1% as at 30 September 2015, the Government has confirmed there will not be an increase in April 2016."

[Cole Burner]

Presumably you also received a copy of the 2016 APFS Newsletter with it? On page one read the paragraph "Pension Increase" about two thirds of the way down the page - all will be revealed! :sad:

[MPN11]

Sorry, I'm a prat! Missed the newsletter bit, and just worked from the Pension figures.

Thanks for the responses.

<creeps away into hole in ground> :uhoh:

[Haraka]

Well you'll get a couple of bob more since the Tax Threshold has gone up .
Whoopee!

[MPN11]

Different Tax regime here, of course. I'm "No Tax" in UK, and a flat 20% after 'allowances' ;)

... but I don't get "Winter Fuel Payments" like those resident in sunny Spain [and presumably elsewhere in the EU] :mad:

Still, yesterday's mail from St Lloyds in UK should generate some interest at HMRC, as I have a UK Bank account or two. Their Tax Compliance outfit has been in touch ... I shall worry about the £55 interest that earned last year [not]. Still, it keeps people in employment, eh? :)

[spekesoftly]

MPN11,

... but I don't get "Winter Fuel Payments" like those resident in sunny Spain ......I think you'll find that the rules have changed. You can no longer get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain because the average winter temperature is higher than the warmest region of the UK.

[fin1012]

I haven't had the AFPS 2016 newsletter, can anyone tell me what I have missed?

[Pontius Navigator]

Of course HMRC are not aware of this. They increased the allowance allocated to one pension by 2.5% when the pension didn't change.

It took 5 months last year and a couple of dozen notices and revised pension payments before I got them to get it right. Now they have done it again. Their sheer unimaginative ineptitude just creates more work for me, my pensions providers and ultimately for them.

[Heathrow Harry]

Inflation = 0.5% - effectively zero

[MPN11]

Inflation in Jersey = 1.5% - pi55ed off :)

[Pontius Navigator]

MPN, remind me what tax you pay.

[Pontius Navigator]

Inflation = 0.5% - effectively zero
-0.1% rounded up to zero is a bonus. Don't give the chancellor ideas of rounding 0.5% down to zero too.

[MPN11]

PN ... we pay 20%. I believe that's what the UK rate is too ;)

The main difference is that we don't have a higher band, so it's 20% across the board.
Oh, and our GST is 5%, but then when shipping costs are factored in things tend to be a bit more expensive than UK.

[glad rag]

Inflation 0%? Sure it is....

[Pontius Navigator]

MPN, Ty, how about personal allowance?

GR, spot value for September. As it is based on the CPI it is free from Government interference. I mean the Chance would never persuade the supermarket s and p ok majors to hold or reduce prices in September would he?

[Voxpop]

Just to be clear about the question of percentage increases. 0% is the increase on the Armed Forces pension. 2.5% is the increase on the old age pension.

[spekesoftly]

2.5% is the increase on the old age pension.Wef April 2016 the (old) Basic State Pension increased by 2.9%

[MPN11]

MPN, Ty, how about personal allowance?

PN, they manage to make it incredibly complicated here, but I think we get £26,100 tax-free* ... but that allowance is for us both, as wife's income is included with mine. UK appears to be £11,000 (each?).


* Other allowances also exist.
https://www.gov.je/TaxesMoney/IncomeTax/Individuals/AllowancesReliefs/Pages/2016TaxAllowancesReliefs.aspx

[BeachedWhale]

I would like to jump in on this forum ref pensions.
I have heard that my contributions to the National Insurance for the 36 years of service is now considered as only a half stamp, thereby only allowing me to draw a reduced state pension.
Is this correct?

[aardyaardvark]

BW - like myself, we paid in a reduced contribution approx. 1.6% less. My 34 years of contributions (to apr 2015) equated to 27 full years. Go to https://www.tax.service.gov.uk/gg/sign-in?continue=%2Fcheckmystatepension%2Faccount&accountType=individual
you will need a government gateway account to access your figures but its quick and easy set-up - National insurance number and passport

[Doctor Cruces]

The Guvmint has to pay for their 11 per cent payrise some how, so screwing the rest of us is the easy way to do it.

[Voxpop]

It very much depends how much longer you have to go until your state pension age. Providing you have 7.5 yrs of working like to state pension age to pay the higher NICs you will be OK. Take a look at the State Pension calculator.

[Swil]

I would like to jump in on this forum ref pensions.
I have heard that my contributions to the National Insurance for the 36 years of service is now considered as only a half stamp, thereby only allowing me to draw a reduced state pension.
Is this correct?
BW, I thought that if you had the 35 qualifying NI contribution years you would get the full Basic State Pension, currently/now £155 ish pw. However, the additional state pension would be reduced or zero if you were contracted out. Probably best to get HMRC to send you a state pension forecast? I think I'll get another one to check!!

Any accountants or tax experts out there?

[Pontius Navigator]

MPN, sort of. If you don't pay tax at 40% and make a transfer election if the lower paid earns less than £11000 it becomes £12000/£10000 or thereabouts. Of course there is also claw back of £1 for £2 or the other way around if you earn too much.

[MPN11]

PN ... so this "Tax Haven" isn't hugely different to UK ... unless you have a large income which would hit the 40% barrier.

Isn't it funny how the Media make such a big deal out of it :D

[F.O.D]

SWIL

On this 6th April. DWP compared the pension entitlement one has accrued under the old system with the sum accrued theoretically if the new single tier pension rules had been in place in the past. This is called the state pension "Starting Amount" For those contracted out who had paid 30 years of NI, one would get the full basic pension of £119 per week. For most public sector workers, this would be more than the single tier calculation which would be lower because of the "rebate derived deduction" for contracting out. So instead of £155 per week single tier pension for 35 years of NI, you would only have accrued approx £70 under the new rules. BUT your starting amount is the higher of both figures ie £119 per week. As contracting out is no longer possible, each additional full year of NI paid from now on should increase the starting amount by £4.40 per week. So if one works and pays NI for another 8.5 years from now, one would get the full single tier amount (£119 + £37 [£4.40 x 8.5] = £156 [actually £155 as that is the flat rate])

[MPN11]

Whereas I now get £121 a week for only doing 30 years Mil (contracted out) and 5 years paid (normal) post-Mil. I can only guess that's right ... who knows, these days, when they keep farting around with the numbers?

[Swil]

Cheers F.O.D, understand it now!!

DWP say that 45% of those retiring between now and 2021 will not get the full amount unless they "buy" additional NI years.

"What HMRC and DWP giveth today they take off you tomorrow"

[Courtney Mil]

If the economy gets dented by anything between now and state pension age, stay by for pensions to be means tested.

[PlasticCabDriver]

Far too complicated to try and work out how much my contracted out reduction is, but I once got I got into the DWP site (through enough security questions to join MI5, that will teach me to do it on the phone :*) it gave me this forecast:

Amount based on your latest National Insurance record (5 April 2015)
£128.89 a week
which is £560.44 a month, £6,725.30 a year

Amount you may get to if you continue to contribute
£155.65 a week
which is £676.80 a month, £8,121.59 a year

(Based on 17-ish years contracted out service, 7-ish years since then as a non-contracted out filthy civvy)

Assuming the year Apr 2015 - Apr 2016 will give me an extra 1 years worth, this should give me a full flat rate pension with 5 more years contributions.

Good job it's not complicated...

Edited to ask: once I've built up the full whack, can I stop paying NI?:E

[Voxpop]

You pay NI as long as you are employed in a job paying over the NI threshold and under your state pension age. You do not even escape by being self-employed - you pay from your bank account rather than your pay.

[Just This Once...]

I'm still confused as to how I pay so much more NI than my wife (not contracted out) yet her contributions count for a higher state pension than mine.

Pay more, get less?

[Willard Whyte]

I'm still confused as to how I pay so much more NI than my wife (not contracted out) yet her contributions count for a higher state pension than mine.

I suspect it's more a case of being pee'd off rather than confused!

[Pontius Navigator]

In Mrs PN s case her NI payments were way too low but she was encouraged to buy in. We did and it has probably paid off, 8 years on come September.