Pension Benefits Information Statement?

[Mind your ears]

Has anyone else seen their BIS on JPA or Defence Gateway and seen that the annual statement has now been changed to only give AFPS 75, and I presume AFPS 05, figures up until the year 2022 as opposed to the AFPS 15 figures backdated to 2015 as in previous years? I appear to have 'lost' about £39k lumpsum and £5k per year pension compared to last years figures. I assume the McCloud option/decision will reinstate the missing pension, but why has MOD/SPVA chosen to make this decision to display a worse option than last year, and how do you compare the last year's BIS to the new one to make an informed decision about if it's all still worth it or not?! Maybe that last bit is artistic license but it just seems strange to change the format and confuse matters more, but then I suppose common sense and MOD/SPVA aren't always in the same sentence.......
Anyone else seen anything different/similar?

[Lima Juliet]

Yes and Yes. Many of us will be better off with AFPS15 if we go to age 60 with the accrual rates and also that 75 doesn’t accrue anything over 55 (max 34 years for officers and 37 years for ORs). But as you say, not to worry as when we get the RSS statements then the old figures will re-instate and we’ll be able to make that choice.

By the way, the same thing happens right now for a Pension Form 12 - I had a proper shock for 5 mins until I realised what they had done! :ok:

[Mind your ears]

Thanks Lima Juliet, I am not going mad then. Real shock on opening the pdf, only to realise, hopefully, what they have done this year. Was psyching myself up for another 30 years.......

[BeeBopp]

Hi,

Does anyone know how long I should expect to wait for a reply from Glasgow. I sent a Form 14 by post for a Pension forecast about six weeks ago. Nothing from them so far by post or email. (AFPS 75, did 12 years, will be age 60 five years from now)

[ForcesPensionSociety]

Serving personnel reverted to their legacy scheme (AFPS 75 in your case) for service prior to 1 April 2022 and. yes, the McCloud option will give you the figures for AFPS 75 vs AFPS 15 for the period 1 April 2015 to 31 March 2022.

[BeeBopp]

Hi,

Sorry, I should have made it clearer. I left the RAF 25 years ago having served 12 years from 1987 to 1999. I have no idea what a McCloud option is or indeed most of the acronyms used in these posts.

How do I go about getting a pension forecast for when I am 60 in five years from now. I have sent a From 14 to Glasgow but not had a reply, how long should I wait or what else can I do ?

Thanks

[NutLoose]

Did you see the pm I sent you?

[ForcesPensionSociety]

Hi,

Sorry, I should have made it clearer. I left the RAF 25 years ago having served 12 years from 1987 to 1999. I have no idea what a McCloud option is or indeed most of the acronyms used in these posts.

How do I go about getting a pension forecast for when I am 60 in five years from now. I have sent a From 14 to Glasgow but not had a reply, how long should I wait or what else can I do ?

Thanks
They normally respond within about 2 weeks. The only thing you can do is apply again I'm afraid.

[Moi/]

For me,

Part 1 - Indicates AFPS Pension since joined, until 31 March 24. As i am beyond aged 40/20 years, currently shows both AFPS75 and AFPS15. Tells me the annual increase. Dont really understand the AFPS 15 commutation bit (is it for life or does it go up).

Part 2 - This indicates the EDP i have built up since joining, until 31 March 24. I assume this is on top of Part 1 payments.

Part 3 - This is blank.

Part 4 - "Members serving both on or before 31 March 2012 and on or after 1 April 2015, including those with a qualifying break in service of 5 years or less, are affected by the 2015 Remedy (McCloud). Where affected members were compulsorily moved to AFPS 15, they have been returned to their legacy pension scheme (known as roll back) for any service during the remedy period of 1 April 2015 to 31 March 2022. All affected members, whether originally moved to AFPS 15 or not, will be given a choice of which pension scheme benefits to take at the point they are due to receive their pension or EDP benefits. This is known as the Deferred Choice Underpin (DCU) and will address the discrimination identified by the courts, regarding the way in which the 2015 public service pension reforms were implemented. From 1 April 2022, all Armed Forces personnel now serve as members of AFPS15".

[BeeBopp]

Hi,

I got the pension forecast in the post. It took about 7 or 8 weeks for Info. It was more than I expected which was nice.

Thanks to all who replied and pm'd me.

[Ninthace]

I got the notification of my next year's pension today, The letter said it had gone up by 6.7%. I subtracted what I actually got in my bank account last year from this year's amount, divided it by last year's sum and multiplied by a hundred. The answer I got was nowhere 6.7. The difference in percentage due to the unchanging tax thresholds resulting in a bigger tax take. Am I right to feel conned?

[MPN11]

Mine seems to be 5.63% on the basis you calculate, but I have never understood those Equiniti statements anyway!

[Party Animal]

Am I missing something here? When has a pay rise ever related to net pay? If you take last years gross pension and multiply it by 1.067, you should get your new gross amount. Whatever you are left with after tax will always be a variable feast depending on your individual circumstances and whatever tax bands are in force at the time. Simples!

[Ninthace]

Am I missing something here? When has a pay rise ever related to net pay? If you take last years gross pension and multiply it by 1.067, you should get your new gross amount. Whatever you are left with after tax will always be a variable feast depending on your individual circumstances and whatever tax bands are in force at the time. Simples!
The point is if the tax bands remain static as the pension is increased a progressively larger portion disappears back into the hole it came out of in the first place but the smiling face coming out of No11 will tell you that you have had a 6.7% rise, whereas in reality you have had nothing of the such which. He will use this figure in interviews to tell folk how well he is looking after you.

[MPN11]

Am I missing something here? When has a pay rise ever related to net pay? If you take last years gross pension and multiply it by 1.067, you should get your new gross amount.Close, but still a few hundred adrift. I'm sure it's broadly correct, though.

[RAFEngO74to09]

Remember the first figure on the Equiniti document for the April payment is the increased amount for 6-30 Apr 24 - the new Financial Year.

There is another entry to the right showing Future Payments from May onwards which should be 1.067 last year's monthly rate (before tax).

Mine - UK tax free in the USA - has always been correct to the penny every year.

[Ninthace]

Tax free I would expect nothing less, and there’s the rub!

[PostMeHappy]

For info, the Equiniti helpline is saying this years Advice of Payments for uplifted pensions will take up to 30 May to be posted….much later than the norm I suspect due to the reworked figures mentioned already, but strange to get Apr [partial] uplift paid before you know what it actually should be ??

[Party Animal]

What reworked figures? Last years pension with a 6.7% rise to this years pension is it, apart from the short April month as alluded to above. I do agree though that potentially waiting to the last day of May before seeing confirmation in writing is odd (and quite frankly unacceptable).

On a separate note and thinking about EngO’s comments- if I choose to retire abroad over the next few years, does my military pension continue to be increased by CPI/inflation every year or is it frozen?

[MPN11]

.....
On a separate note and thinking about EngO’s comments- if I choose to retire abroad over the next few years, does my military pension continue to be increased by CPI/inflation every year or is it frozen?Not sure there's a Global answer to that, but certainly in Jersey my wife and I receive the standard UK increases. In our case we're paid tax-free, but then have to declare to the JE tax authorities.

[Ninthace]

My Pension in France was not frozen and was paid in Euros by HMG via an Irish bank. That was pre the B word.

[ForcesPensionSociety]

What reworked figures? Last years pension with a 6.7% rise to this years pension is it, apart from the short April month as alluded to above. I do agree though that potentially waiting to the last day of May before seeing confirmation in writing is odd (and quite frankly unacceptable).

On a separate note and thinking about EngO’s comments- if I choose to retire abroad over the next few years, does my military pension continue to be increased by CPI/inflation every year or is it frozen?
It rises by the inflation measure irrespective of where you live. It is the State Pension that does not necessarily rise - details of which countries do see a rise and which don't are on the gov.uk website.

[BEagle]

I got the notification of my next year's pension today, The letter said it had gone up by 6.7%. I subtracted what I actually got in my bank account last year from this year's amount, divided it by last year's sum and multiplied by a hundred. The answer I got was nowhere 6.7. The difference in percentage due to the unchanging tax thresholds resulting in a bigger tax take. Am I right to feel conned?

On your 'Advice of Payment' from Equiniti, you will see something like:
'GMP amount increased from 06/04/2004 - new rate of pension £nn,nnn.nn a year'
'Pension of £nn,nnn a year less GMP of £xxxx.xx increased by 6.7%'
'New Rate £mm,mmm.mm from 08/04/2004'

It is only (£nnnnn.nn - £xxxx.xx) = £yyyyy.yy which is increased by 6.7%! To check, multiply £yyyyy.yy by 1.067, then add the GMP of £xxxx.xx to that figure and divide by 12. That should then be the same as the Gross amount shown under 'Future Payments'.

GMP is 'Guaranteed Minimum Pension'.

In my case, although the pension was increased by 6.7%, my 2024 actual 'Gross amount' is 5.9% higher than my 2023 actual 'Gross Amount'.

Cleaar as mud now?

[Ninthace]

Yes, something like that - ish. What matters to me is % change in the money going into the bank every month. That did not go up by 6.7% :{

[Biggus]

All pay rises in UK are quoted in gross figures/percentages - be it doctors, teachers, serving military or military pension increases. How could it be otherwise, as the "net" increase will vary from person to person depending on their financial circumstances. How would you like increase to be announced... Smith got 5.6%, Jones 5.2%...etc?

Assuming your pension already exceeds the personal tax allowance, ALL of any increase will be taxed, whereas a portion of your existing pension WASN'T - let alone if your lucky enough to be above the higher rate threshold so ant increase is taxed at 40%. Thetefore any percentage increase in your gross salary will not result in an equivalent percentage net increase.

All pretty much from tax affairs 101.

[BEagle]

Indeed! Due to my income tax deduction having gone up by 22%, so that it is now 23.7% of my monthly payments, rather than the 20.5% hitherto, my actual net service pension increase for 2024 is only 1.7%.....

[Ninthace]

Biggus, I appreciate that, but the effect could be have been reduced. for all pension recipients, if the tax thresholds had also been adjusted to take account of inflation in the same way the pensions were. If (big if), my fag packet calculation is correct, my actual take home increase was nearer 2% than 6.7%.

[GreenXCode]

90% of statistics are made up :ouch:

[Biggus]

For BEagle a 6.7% gross rise in pension becomes 1.7% net, while for Ninthace 6.7% gross becomes 2.0% net - both of which seem very low and no doubt could lead to a sense of disappointment.

I don't know (or want to know) the tax situation of either gentleman, but I assume higher rate tax must come into play in their cases.

As a mere peasant, my entire earnings are all still below the higher rate tax threshold, and for me a 6.7% gross increase in my military pension becomes about 6% net. But, as I've already said, I'm sure each individual is affected differently depending on their particular financial circumstances - and it's not a competition!!

[BEagle]

In my case, it's perhaps because my deferred state pension (66% higher than the basic pension) has increased by a surprising 9.6% for 2024? Although I think that HMRC might have over-assessed me? Doubtless I'll find out when I submit my tax return in the coming weeks....

[Bob Viking]

So why has my pension not increased at all then? I properly left the service at the end of September 2022 so it’s not a lack of time out that’s doing it. Is it because I’m not currently a UK tax payer? Does that prevent increases? My pension is paid into a UK bank account.

BV

[downsizer]

So why has my pension not increased at all then? I properly left the service at the end of September 2022 so it’s not a lack of time out that’s doing it. Is it because I’m not currently a UK tax payer? Does that prevent increases? My pension is paid into a UK bank account.

BV

Did you commute? How old are you? AIUI no rises till 55.

[Bob Viking]

Of course. I forgot that bit. It should be a pretty healthy increase when it comes though.

Thankyou.

BV

[Bob Viking]

They say there’s no such thing as a stupid question but let’s see. I am away from my files so can’t remember for certain and I have a niggling question that I’m sure someone can answer.

When the pension jumps back up after the abated period following a commutation does it jump back up with the cumulative effect of several years worth of inflationary increases?

For example being a 47 year old, assuming I jump back onto AFPS75 when offered, will my pension jump up at age 55 to the amount it would be following every years increase from now until then?

BV

[downsizer]

That is my understanding. First it jumps to what you would have got had you not commuted, then the inflationary %s are applied.

[ForcesPensionSociety]

They say there’s no such thing as a stupid question but let’s see. I am away from my files so can’t remember for certain and I have a niggling question that I’m sure someone can answer.

When the pension jumps back up after the abated period following a commutation does it jump back up with the cumulative effect of several years worth of inflationary increases?

For example being a 47 year old, assuming I jump back onto AFPS75 when offered, will my pension jump up at age 55 to the amount it would be following every years increase from now until then?

BV
After an abated pension, when pension increases are applied, they applied to the original award, not the abated award.

[Bob Viking]

Thanks for your answers. I thought my memory was correct but didn’t have my paperwork with me and had a mild panic. I didn’t want to miss out on the big increases due to recent high inflation.

BV

[just another jocky]

Another question; I transferred from Regular to FTRS a few years ago from AFPS05. My pension was abated, though they never told me by how much, due to my FTRS salary taking me above my previous, full-time salary. A few years later and I am looking forward to proper retirement but I now really don't know whether the pension I currently receive will increase when I do retire or has the abatement vanished over the last 6 years? Not knowing how much my Regular service pension will be makes it difficult to plan financially for my retirement (I'm ignoring any McCloud outcomes for now).

Apologies if this is a dumb question.

[Ninthace]

What actions have you taken so far to find out?

[Biggus]

Just another jockey,

You used to be able to request a "pension forecast", which I believe most people found to be pretty accurate. If that option is still available it may help resolve your issue.

[downsizer]

Another question; I transferred from Regular to FTRS a few years ago from AFPS05. My pension was abated, though they never told me by how much, due to my FTRS salary taking me above my previous, full-time salary. A few years later and I am looking forward to proper retirement but I now really don't know whether the pension I currently receive will increase when I do retire or has the abatement vanished over the last 6 years? Not knowing how much my Regular service pension will be makes it difficult to plan financially for my retirement (I'm ignoring any McCloud outcomes for now).

Apologies if this is a dumb question.


All my colleagues who left FTRS has thier pensions returned to what it should have been. I'll caveat that with it was '75 not '05.

[RAFEngO74to09]

I PVR'ed on APFS 75 prior to age 55 to compete to stay in the same post (the only one I was willing to remain in the Service to do) on FTRS terms.

I won the competition for the post by default (other applicants all withdrew when they found I was competing) and - after taking what was then the 1-month mandatory time out - carried on as FTRS on RFPS 05 terms.

I subsequently PVR'ed from the FTRS post when circumstances at the base changed dramatically, along with a dumbing down of the future intent for the activity I was engaged in, all coincident with my opportunity to emigrate.

My full AFPS 75 pension was restored immediately and I was sent a letter informing me that I would be entitled to an additional amount earned on RFPS 05, at what age I could apply and how soon before the relevant birthday I could submit the necessary form.

The claim process went smoothly and, after the first RFPS 05 payment, future monthly payments for AFPS 75 + RFPS 05 were combined.

[Lima Juliet]

Another question; I transferred from Regular to FTRS a few years ago from AFPS05. My pension was abated, though they never told me by how much, due to my FTRS salary taking me above my previous, full-time salary. A few years later and I am looking forward to proper retirement but I now really don't know whether the pension I currently receive will increase when I do retire or has the abatement vanished over the last 6 years? Not knowing how much my Regular service pension will be makes it difficult to plan financially for my retirement (I'm ignoring any McCloud outcomes for now).

Apologies if this is a dumb question.

You have 2 options:

Pension Form 12
https://assets.publishing.service.gov.uk/media/657afc30095987000d95e114/AFPS_Form_12.pdf
This will give you a once yearly FREE pension forecast that should cover your Regular pension and also your new FTRS pension. Be aware, that the McCloud roll back is default for everyone and for some they are better off not rolling back. You’ll need to get the RSS statement to understand the roll back effects. This form is also available for electronic submission if you have a MODnet account. Expect it to take about a month to come back.

Pension Form 14
https://assets.publishing.service.gov.uk/media/657af7c60467eb001355f839/AFPS_Form_14.pdf
This is for requesting a forecast of your preserved pension on retirement.

Good luck and check your sum carefully :ok:

[Ninthace]

Shortly before I left the RAF at 55, as part of the resettlement service I sat down with a financial adviser to discuss, my pension forecast and my other bits and pieces to work out if I needed to work for a living or could actually retire. As I recall, it was a free assessment and gave me excellent advice. Having gone through my plans, my ins and outs the advice was I would be mad to work unless I really wanted to, and it was spot on.
I never had another job and I never worked so hard as I did after I retired, but doing the things I wanted to do. The trick is not to have expensive hobbies or to make your hobbies work for you.

[Akrotiri bad boy]

I'm with you on this Ninthace. I took the government's Pension Wise offer and spent a very valuable 90mins with a completely unbiased professional. Rather than become "yesterday's man" I packed it in but not before re-hashing some old qualifications including a HGV licence. Since banging out I've done the sum total of c**k all but have never been so busy doing the things I want to do, including nine holidays in less than three years All this fun with no annual appraisals, no H&S assessments, no staff and minimal exposure to HMRC. Unless you've overstretched yourself why would you carry on in harness? Give it up and let the next guy in line have a go.:ok:

[just another jocky]

You have 2 options:

Pension Form 12
https://assets.publishing.service.gov.uk/media/657afc30095987000d95e114/AFPS_Form_12.pdf
This will give you a once yearly FREE pension forecast that should cover your Regular pension and also your new FTRS pension. Be aware, that the McCloud roll back is default for everyone and for some they are better off not rolling back. You’ll need to get the RSS statement to understand the roll back effects. This form is also available for electronic submission if you have a MODnet account. Expect it to take about a month to come back.

Pension Form 14
https://assets.publishing.service.gov.uk/media/657af7c60467eb001355f839/AFPS_Form_14.pdf
This is for requesting a forecast of your preserved pension on retirement.

Good luck and check your sum carefully :ok:
Awesome, thanks bud.

[Training Risky]

Serving personnel reverted to their legacy scheme (AFPS 75 in your case) for service prior to 1 April 2022 and. yes, the McCloud option will give you the figures for AFPS 75 vs AFPS 15 for the period 1 April 2015 to 31 March 2022.
I just received my Remediable Service Statement (RSS) for the Legacy period. I made my selection and sent it back the same day...does anyone know when I may see the loot?! Will it be a one-off bank payment or will it come with the monthly pension payment? (Mrs TR wants a new kitchen!) :)

[downsizer]

I just received my Remediable Service Statement (RSS) for the Legacy period. I made my selection and sent it back the same day...does anyone know when I may see the loot?! Will it be a one-off bank payment or will it come with the monthly pension payment? (Mrs TR wants a new kitchen!) :)

How long have you been out?

Does it clearly break down the figures?

[Training Risky]

How long have you been out?

Does it clearly break down the figures?
I left 8 years ago and it is a very clearly laid out document (IMHO). It explains what I have been missing in AFPS 75 terms since my pension has been in payment, but it is not clear on when or how I will receive the under payment!

[downsizer]

I left 8 years ago and it is a very clearly laid out document (IMHO). It explains what I have been missing in AFPS 75 terms since my pension has been in payment, but it is not clear on when or how I will receive the under payment!

Thanks............only been out a year, so it'll be interesting to see when mine arrives.

[Party Animal]

I’m in your boat downsizer - retiring just over a year ago, well over the age of 60 (on MEOS+) terms and still on a front-line flying squadron. Previously locked into AFPS 75, my pension effectively stopped from age 55 until everyone moved onto the new scheme in Apr 22. In my case, that is currently a big hole during which my income was all on top level PAS. Bottom line for me is in the order of a £10k pension uplift as soon as my RSS paperwork is finalised, hence I have a significant interest in this thread.

TR is the first fully retired person I’m aware of to receive an RSS and I wonder if they are starting from those who have been out longer? Either way, I’m still not expecting anything till April next year and I look forward to the lump sum offset (including interest added) to pay for next year’s holiday.

[downsizer]

TR is the first fully retired person I’m aware of to receive an RSS and I wonder if they are starting from those who have been out longer? Either way, I’m still not expecting anything till April next year and I look forward to the lump sum offset (including interest added) to pay for next year’s holiday.

Same, he's the first I've heard of.