As a subscriber to the FSAVCs I have an interest in the issue. To quote the article:
"In his opening address, the Defence Secretary announced an increase in death-in-service benefits under the current Armed Forces Pension Scheme."
So that sounds fairly simple. However,:
"Special arrangements are in place for those dying in-service between 6 April 2005 and 5 April 2006. In this case, the death benefits will be calculated on the better of the current and the new pension scheme arrangements, giving the best outcome for dependants. This is a transitional arrangement that recognises the fact that currently serving Armed Forces personnel will not be eligible for the improved death benefits offered by the new pension scheme until a year later than new entrants."
So now I'm a little confused.
A look at the full transcript of BuffHoons speach reveals:
"I am therefore pleased to announce that we have decided to increase the death-in-service benefit to 3 times pay for deaths from 6 April 2005 for all members of the current scheme."
http://www.mod.uk/issues/pensions/ne...urrentvnew.htm
COMPARISONS BETWEEN THE CURRENT AFPS AND THE NEW AFPS.
Old scheme = Normally a tax-free lump sum of one year’s pensionable salary (1.5 X for attributable death in service).
New scheme = Tax-free lump sum of four times pensionable salary.
So that explains it then.
What about my FSAVCs? I can only assume that they will now worth a minimal increase in the lump sum, vice a substantial increase. Or do I get my money back?