Also received via email confirming pension calculator errors:
‘Online Pension Calculator
An error/misunderstanding has been identified on the online pension calculator over Added Pension. The contractor will attempt to hide this function until it can be rectified and checked through further User Trials. The issue is that personnel are inputting the value of ‘money they would like to invest’ rather than ‘pension they would like to buy’. This is producing figures that would require an additional £100k of investment by the individual. Personnel wishing to purchase Added Pension are advised to contact Vets (UK), details can be sought through the link below:
http://defenceintranet.diif.r.mil.uk/Personnel/Military/Remuneration/Pages/Remuneration.aspx’
As the Added Pension fields on the pension calculator are taking longer to hide/ remove than hoped, we have produced the following lines to take on the issue and would appreciate it if you would push these out via your individual comms chains as soon as possible. An Ops bulletin has also been placed on JPA, see link below:
http://defenceintranet.diif.r.mil.uk/Organisations/Orgs/HOCS/Organisations/Orgs/DBS/MilitaryPersonnel/JPAPortal/Library/Bulletins/Pages/1504-001.aspx
Lines to Take for Service personnel wishing to purchase Added Pension contracts under AFPS 15
· Personnel are advised not to forecast their Added Pension benefits using the pension calculator. The calculator can, however, still be used for producing standard pensions forecasts. Currently the most advisable route for obtaining an Added Pension quotation is via DBS Veterans UK, using AFPS Form 6.
· Although the pension calculator is providing accurate forecasts for Added Pension, the fields relating to Added Pension are presented in a manner that is easy to misinterpret, and it is apparent that many personnel are becoming confused.
· The main area of confusion relates to the amount of Added Pension that can be purchased. The £6500 is a HM Treasury limit relating to the maximum amount of Added Pension that the member can receive each year in retirement; it does not relate to the amount of contributions that a member may make. For example, to benefit from an additional £100 of Added Pension each year in retirement, a typical member may have to make contributions equal to anything between £1000 and £2000 (the calculations are different for each person depending on their circumstances, this is an indicative example only). So, for a typical member to accumulate Added Pension which provides an extra £6,500 per year in retirement (the maximum amount), they may have to make contributions throughout their public service career in the region of £60,000 - £120,000.
· Personnel intending to purchase Added Pension should first request a quote from DBS using AFPS Form 6. Only when personnel have received the quote and they wish to take out an Added Pension contract for that year should they complete AFPS Form 6A. The link to the form that should be used to obtain a quote is below:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/420457/afps-2015-form_6.doc
· A revised DIN, setting out the details of purchasing Added Pension in clear terms will be issued imminently.