DD, that sounds pretty bad.
To be honest I am having difficulty in understanding where the new (beta) calculator gets its figures from and I am concerned that it will give unreliable figures in some cases when it goes live in the next few days.
I do not think producing a calculator with heavy caveats over accuracy is good enough. Where else are we supposed to get decision-quality, formal and legally supportable advice from?
The Armed Forces Pension and Annual Allowance Calculator is for guidance purposes only. It is not intended to provide you with financial advice. If you require financial advice, you should contact an independent financial adviser. Your unit administration staff have a list of Services Insurance and Investment Advisory Panel (SIIAP) approved independent financial advisers, although you are free to use any independent financial adviser that you wish.
The calculator does not show dependants benefits, ill-health benefits, Reserve Forces, MPGS, AVCs, transfers in or pension sharing figures. In addition, the AFPAAC cannot give a forecast projection when qualifying service is different to reckonable service. The calculator will initially ask you to confirm which pension scheme you are in. The forecasts that the calculator provides are based on 2013 pension codes (for AFPS 75 members) and 2013 pay rates (for AFPS 05 members).
What will the calculator provide?
Transitional Protection
The Government has offered Transitional Protection for those who were within ten years of their respective scheme’s Normal Pension Age (NPA) on 1 April 2012. The Armed Forces Pension Scheme 1975 (AFPS 75) or Armed Forces Pension Scheme 2005 (AFPS 05) both have an NPA of 55. This means if you were aged 45 or over on 1 April 2012, you will stay on your current pension scheme and your benefits will be unaffected.
The new Armed Forces Pension and Annual Allowance Calculator (AFPAAC) will continue to provide a guide to the pension benefits you could expect to receive under AFPS 75 or AFPS 05.
Break in service
If you have any break in service prior to the 6 April 2006 and are entitled to a preserved pension, your forecast will be inaccurate and you will need to contact SPVA Mail Point 480, Kentigern House, 65 Brown Street, Glasgow, G2 8EX for a written forecast. Please note that this may also affect Annual Allowance calculation.
Armed Forces Pension Scheme 2015 and Accrued Rights to existing pension benefits
If you do not have Transitional Protection you will automatically transfer to the Armed Forces Pension Scheme 2015 (AFPS 15) on 1 April 2015. AFPS 15 that is based on a Career Average Revalued Earnings (CARE) pension (from 1 April 2015) rather than on final rank or salary. However, you will also have rights to pension benefits accrued as a result of your membership in AFPS 75 or AFPS 05. This means pension benefits already earned in current schemes, up to the implementation date of the new scheme, will be guaranteed. Service personnel will be able to draw these benefits at the same age as now (in accordance with current schemes' rules) and they will be linked to the final rank/pensionable salary at the date of leaving the Services - not the rank/salary at the time of transfer to the new scheme - thereby maintaining their final rank/salary link.(see DIN 2012 01-063, DIN 2012 01-175, DIN 2012 01-249 and DIN 2013 01-086 which include worked examples).
The new Armed Forces Pension and Annual Allowance Calculator (AFPAAC) will provide a guide to the pension benefits you could expect to receive under AFPS 75 or AFPS 05 and AFPS 15. Presently, the calculator cannot project a forecast for MODOs who are members of AFPS 05. Once the policy has been defined the calculator will be updated to provide forecasts.
Pension Tax - Annual Allowance
If you hold the rank of OF3 and above there is also an option to calculate your Annual Allowance (AA) and any unused allowance from previous years that you may be entitled to carry forward. The AA is the amount that an individual's pension savings can grow each year without being taxed and the current AA limit is £50,000. If you have exceeded the AA, SPVA will write to you with a statement. The calculator can only give an estimate on a complete tax year. Scheme Pays pension reduction is indexed linked and will increase each April in line with the Consumer Price Index.
Qualification for AFPS 15 Early Departure Payment
All continuous paid service in AFPS 75 and AFPS 05 will qualify towards an AFPS 15 EDP.
Aggregation of Previous Armed Forces Preserved Pension Awards
If you have rejoined the Armed Forces and have a preserved pension award you are entitled to aggregate your most recent previous preserved pension award with your current service. (This will only count for pension purposes, not for Resettlement Grant or Early Departure Payment (EDP).) However, you must apply to do so in writing, to SPVA, Pensions Division (Aggregation), Mail Point 480, Kentigern House, 65 Brown Street, Glasgow, G2 8EX before terminating your service. (page 21 of the Service Leavers Guide refers).
Aggregation of previous AFPS 75 service with a current period of AFPS 75 service
If you are a member of AFPS75, have insufficient service on your current engagement and have not opted to aggregate your previous preserved pension award with your current service you may not qualify for immediately payable pension benefits. You will only be entitled to a second preserved pension award.
Aggregation of previous AFPS 05 service with a current period of AFPS 05 service
If you are a member of AFPS 05 and are aged 55 or over on the date you leave service, and have not opted to aggregate your previous AFPS 05 preserved pension with your current service, your immediate pension at age 55 or over will be based on your current period of service only and your earlier deferred pension will be paid to you as a preserved pension at age 65. However, if you have opted to aggregate your previous AFPS 05 preserved pension with your current service, your immediate pension payable at age 55 or over will be based on your current period of service and your earlier deferred pension. If you leave service before the age of 55 with insufficient 'relevant service' for an Early Departure Payment, your previous preserved pension and current awards will be deferred until you are age 65.
Aggregation of previous AFPS 75 service with current period of AFPS 05 service
If you are a member of AFPS 05 and are aged 55 or over on the date you leave service, and have not opted to aggregate your previous AFPS 75 preserved pension with your current service, your immediate pension at age 55 or over will be based on your current period of service only and your earlier deferred pension will be paid to you as a preserved pension at age 65 (any service given prior to 6 April 2006 will be paid at age 60).
If you are a member of AFPS 05 and are aged 55 or over on the date you leave service, and have opted to aggregate your previous AFPS 75 preserved pension with your current service, your immediate pension at age 55 or over will be based on your current period of service and your earlier deferred pension and paid at age 55.
If you leave service before the age of 55 with insufficient 'relevant service' for an Early Departure Payment, your previous preserved pension and current award will be deferred until you are age 65. Please note that even if you aggregate a preserved pension awarded under the AFPS 75 with your current AFPS 05 service this is for pension purposes only.
Please note that, any previous service given before 6 April 2005 does not qualify as 'Relevant Service' and does not therefore count towards the Resettlement Grant or Early Departure Payments.
Resettlement Grants
Resettlement Grants are NOT being reviewed as part of the changes to the new pension scheme and there will be NO changes to the current Resettlement Grant system as a result of the transition to the new pension scheme.
Resettlement Grants are for all Regular Service personnel. Eligibility for a Resettlement Grant depends upon the date of joining the Regular Armed Forces as follows:
Those who joined on or after 6 April 2005
All Ranks need to have 12 years' relevant service (from date of entry). All service which has not been transferred under the OTT is excluded.
Those who joined before 6 April 2005 and took the Offer to Transfer to the Armed Forces Pension Scheme 2005 (AFPS 05) Terms of Service
All Ranks need to have 12 years' relevant service (from date of entry).
Those who joined before 6 April 2005 and did NOT take the Offer to Transfer to AFPS 05 Terms of Service
Officers - to have at least 2 years' Commissioned service and have 9 relevant years of reckonable service from age 21.
Other Ranks - to have 12 relevant years of reckonable service from age 18.
Opted Out AFPS 75 or AFPS 05
If you have opted out of AFPS 75 or 05 in favour of your own private pension arrangements, no pension benefits will be due under AFPS 75 or AFPS 05.
Disclaimer
Although every effort has been made to ensure that the information provided is as accurate as possible, no representation or warranty, express or implied, is given as to its accuracy and the MOD does not accept any liability for error or omission. The MOD shall not be liable for any loss or damage arising from the use of, or inability to use, the Pension and Annual Allowance Calculator, or any material contained in it, or from any action or decision taken as a result of using the Pension and Annual Allowance Calculator or any such material.
If you have Transitional Protection or are excluded from using the calculator you may contact SPVA in writing for one free a forecast per annum at the following address: SPVA Mail Point 480, Kentigern House, 65 Brown Street, Glasgow, G2 8EX
Acceptance
You cannot use the calculator unless you accept these terms and conditions by checking the ‘accept’ box below.