MOD Pension

[RHKAAF]

Just a thought, but can anyone confirm that my RAF pension will still be indexed linked if I go to live abroad ?
I know the OAP is not at the moment ,though apparently there are thoughts to link it in the future but not to backdate the change.

[kaitakbowler]

Err, just a thought, why don't you ask the pension provider?

PM

[MFC_Fly]

Maybe because it is a bank holiday weekend and RHKAAF thought someone on here may be helpful :rolleyes:

[Darwinism]

I live in Australia now any my RAF pension isn't index linked - sorry.

[MPN11]

State and Service pensions both UK-Index-Linked in Jersey. Both paid free of UK tax, and taxed here instead.

We are a bit of an oddity, though ... A Crown Dependency, not part of the UK and happily not in the EU.

[Yeller_Gait]

I live in Australia now any my RAF pension isn't index linked - sorry.

Your RAF pension should be index linked, but not your UK State Pension.

Y_G

[Pontius Navigator]

Index linking of OAP depends on country of emigration, for instance Canada no and USA yes. Similarly OZ and NZ no, but EU etc is yes.

I am not sure about the Caribbean Islands (ex Colonies) but I think they are OK as the index linked policy is based on reciprocity.

http://www.thisismoney.co.uk/money/pensions/article-1709959/The-state-pension-British-people-living-overseas.html

http://britishexpats.com/forum/australia-54/uk-military-pensions-155113/

Once you are permanently abroad then you should not be paying UK tax.

[MPN11]

What a bizarre listing at the end of that first link, PN :hmm:

[Courtney Mil]

RHKAAF,

Start by telling us where you're moving to and which pension scheme do you belong to? The answer to your question will depend on that and may be different for state pension and AFPS. There are also some points about tax you will need to know about.

Once you are permanently abroad then you should not be paying UK tax.

Not true. For example, the Dual Tax agreement with France, means I pay tax on a UK government pension in the UK, despite being permanently resident in France.

[MFC_Fly]

See kaitakbowler, there are some useful people on the forum ;)

The info provided will give RHKAAF something to think about until he gets the opportunity to confirm it officially with his/her pension provider.

[MPN11]

Not true. For example, the Dual Tax agreement with France, means I pay tax on a UK government pension in the UK, despite being permanently resident in France. ... whereas here in JER the Tax authorities insisted both pensions were taxed in JER, and paid gross in UK, despite a Dual Taxation agreement. I accepted the better Tax position here with my usual good grace ;)

[camelspyyder]

I bet you need every penny of pension to live in Jersey. I'm a qualified resident there myself, but have no plans to return when I'm a pensioner.

[MPN11]

I bet you need every penny of pension to live in Jersey. I'm a qualified resident there myself, but have no plans to return when I'm a pensioner.I guess it t depends on personal circumstances, and how many/good pensions you have [we have 2 Service and 2 State ones]. But I estimate about £5,000 p/a cheaper than when we were living in Camberley, taking account of Tax, Rates and Utilities. YMMV, of course.

(I will ignore house prices, which is a separate subject altogether!)

[fergineer]

I live in NZ and my RAF Pension is index linked, same rules apply up to the age of 55 when as per everyone in the UK it is not index linked, well that was how my pension worked.

[Tankertrashnav]

Son lives in Netherlands and his British Army pension is not counted as part of his income there for tax purposes. As it is slightly less than his UK tax allowance he pays no UK tax on it either as he has no other income here. He's hoping the Dutch dont follow France's lead as that would cost him! Index linking not yet applicable as he is stilll in his 40s.

[Courtney Mil]

Follow France's lead?

[Surplus]

I'm in Oz and my RAF pension was index linked when I hit 55.

[BBadanov]

I'm in Oz and my RAF pension was index linked when I hit 55.


Yep, I am the same. OAP is not index linked however, as outside the EU.

[Skeleton]

I am in Oz and asked this question recently and was told told that my pension will be index linked when I reach 55 but my OAP will not be. Courtney is right about tax, dual citizen or not, you will still be taxed on your pension is the information I was, it has to be said, curtly given. If they got the last bit wrong I would be delighted to know.

[ImageGear]

Regarding UK OAP Pension taxation at source:

An exemption can be obtained with this form...

https://www.gov.uk/government/publications/double-taxation-united-kingdomfrance-si-2009-number-226-form-france-individual

This form also includes company pension annuity payments, but not income derived from other sources such as property rentals.

It has to be completed and delivered to your local French Impots Office who, in my case about 2 months ago, knew exactly what to do with it. Both sections must be completed but they just duplicate the same data.

There is also the option to have the pensions paid directly into a French bank account.

Imagegear

[Darwinism]

Index linking of OAP depends on country of emigration, for instance Canada no and USA yes. Similarly OZ and NZ no, but EU etc is yes.

I am not sure about the Caribbean Islands (ex Colonies) but I think they are OK as the index linked policy is based on reciprocity.

The state pension for British people living overseas | This is Money (http://www.thisismoney.co.uk/money/pensions/article-1709959/The-state-pension-British-people-living-overseas.html)

UK Military Pensions - British Expats (http://britishexpats.com/forum/australia-54/uk-military-pensions-155113/)

Once you are permanently abroad then you should not be paying UK tax.


Thanks Pontius Navigator - I live in Australia so I won't bother chasing up pension not being indexe linked then.

[RHKAAF]

Sorry, I should have said Canada and I am well over the 55 year point.
I assume from all the inputs that over 55 the MOD ( RAF ) pension will be index linked no matter where in the world you live.

By the way ,when I bought a new Hyundai car a few years ago,I got a big discount because my pension is paid through the government's INFINITY scheme. Worth knowing !

[Thelma Viaduct]

My cousin's husband told me today that he will only receive 30% of his afps 75 pension at his 22 years service point.

When we joined up, part of the sell/attraction to the job was that we would receive 100% pension after 22 years service.

It's disgusting how the government expect you to fight their illegal wars, eat sh1t food, live away from family in portacabins/shell scrapes, then shaft you over something you signed and agreed on your contract of employment.

Why hasn't more been made of this in the media?? Is it another D-notice from the fu£kers in parliament???

[G-CPTN]

Armed Forces Pension Scheme 1975 Explained (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/405070/MMP106_Web_Accessible_Version_pension_scheme_explained.pdf)

Your accrued benefits do not build up at a uniform rate. AFPS 75 accrual rates are faster up to the immediate pension point, so that after 16 years’ reckonable service as an Officer you will have accrued 28.5% of representative pay and after 22 years’ reckonable service as an Other Rank; you will have accrued 31.83% of representative pay.
If you retire at age 55, with 34 years’ reckonable service as an Officer or 37 years’ reckonable service as an Other Rank, you will have accrued the maximum pension of 48.5% of representative pay (the 48.5% excludes the lump sum).

Armed Forces Pension Scheme 2015 (AFPS 15):-
2.3 A new pension scheme will commence on 1 April 2015.
Members of AFPS 75 who are in service on or after 1 April 2015, will be transferred to AFPS 15 except if you were within ten years of pension age (aged 45 or over) on 1 April 2012. This group will remain in the AFPS 75 scheme.

THE ARMED FORCES PENSION SCHEME 2015 (AFPS 15):- FREQUENTLY ASKED QUESTIONS (FAQs) (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/403164/20131112_FAQs_V140.pdf)

[Just This Once...]

When we joined up, part of the sell/attraction to the job was that we would receive 100% pension after 22 years service.

I think your imagination has got the better of you if you think just 22 years service would accrue such a massive pension!

[VinRouge]

I think they mean 100% of the pension he was going to originally get, as opposed to the significant reduction we now face.

[Thelma Viaduct]

I think your imagination has got the better of you if you think just 22 years service would accrue such a massive pension!

No not at all. Fully under the impression that you could draw your pension after 22 years service.

[Just This Once...]

22 years reckonable service as an other rank would earn an immediate pension, not index linked, proportionate to rank and years served. Serve longer and you would get more. Once you hit age 55 the retrospective indexation is applied and the pension is index linked from that point onwards. The rough percentages you would receive at 22 years has already been given above.

[Courtney Mil]

Thelma, I think you need to look more carefully at your terms of service, your pension terms and your expectations. It might not be the right time to retire until you have fully understood the status of all three of those factors.


It's disgusting how the government expect you to fight their illegal wars, eat sh1t food, live away from family in portacabins/shell scrapes, then shaft you over something you signed and agreed on your contract of employment

When you and I signed up, we agreed to do all those things. Hopefully we both did that. Now, you tell me how we have been shafted.

[Thelma Viaduct]

Thelma, I think you need to look more carefully at your terms of service, your pension terms and your expectations. It might not be the right time to retire until you have fully understood the status of all three of those factors.



When you and I signed up, we agreed to do all those things. Hopefully we both did that. Now, you tell me how we have been shafted.

I'm medded out already old bean, attributable to service. Just stating what we were told in 1998. Full pension after 22 years service.

[Courtney Mil]

OK. As you didn't give it time to find out what would happen after 22 years (since 1998), I wonder what the rant was about:

It's disgusting how the government expect you to fight their illegal wars, eat sh1t food, live away from family in portacabins/shell scrapes, then shaft you over something you signed and agreed on your contract of employment.

But then on another thread:

Baffles me how Prince Harry spends so much quality time with wounded soldiers that his own Grandma sent to fight an illegal war, pretty messed up when you think about it. No wonder his cheeks are so rosy, I'd be embarrassed too if i were him.

Seems you have a clear idea about the legalities of wars (without ever explaining or justifying that position), but you are confused about who sends us to fight said wars.

[Thelma Viaduct]

OK. As you didn't give it time to find out what would happen after 22 years (since 1998), I wonder what the rant was about:



But then on another thread:



Seems you have a clear idea about the legalities of wars (without ever explaining or justifying that position), but you are confused about who sends us to fight said wars.

You're not stupid, so don't act it, you know the answers.

[downsizer]

When you and I signed up, we agreed to do all those things. Hopefully we both did that. Now, you tell me how we have been shafted.

Well, as you are out, I wouldn't say you have been shafted; but there is certainly a large proportion of currently serving who DO feel shafted. Their IPs at option points are now considerably less than what they were under the TACOS of the pension scheme when they joined. TACOS that were altered by the government despite those servicemen doing everything that was and is being asked of them.

Personally my IP is now a lot less than I had been planning on for my entire career and staying past my IP point is a lot less attractive under then new scheme. One of the major factors pushing me out the door.

[Pontius Navigator]

When I joined my pension, at rates applying at the time, was £401pa, the same as extant marriage allowance. My gratuity was around £1700.

Had I retired at my 12 year point my gratuity would have enabled me to by a house (price at enlistment). In terms of inflation, at that 12 year point the house would have been 4 times that gratuity but the gratuity would probably been high enough to buy the house anyway.

Certainly never felt disadvantaged at that point.