Death in Service Benefit
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Oh Dear!
The tangled web gets even worse.
From the new AFCS booklet "Your Compensation Scheme Explained".
Page 16 - Bereavement Grant. ....... "If you die in service, the following provisions apply, reflecting the different levels of death-in-service benefits paid under the two pension schemes. " (Italics mine).
Page 30 - Comparison of benefits payable on death due to service - Attributable benefits under AFPS 75 and WPS. Death-in-service lump sum of up to approx 3 times pensionable pay. Note 6. The lump sum is increased to approx 3 times pensionable pay with effect from April 2006.
So perhaps it is 3 times rather than 4 times, and from April 06 rather than now. And what does "approx 3 times" mean? And what did the SofS actually say? What did he think he said? What was he reported as having said?
Does anyone know what is going on?
Oh dear, oh dear, oh dear. What a shambles!
Ginseng
Here's a thought. Perhaps it all means that the Death-in-Service Benefit in AFPS 75 remains at 1 to 1.5 times until Apr 06, but in the meantime they will actually pay 4 times (to equal AFPS 05), until transfer day in Apr 06, when those transfering to AFPS 05 will keep their 4 times, but those who don't and remain in AFPS 75 revert to AFPS 75, which on the same day has been raised to 3 times, so in effect they see a drop from 4 times to 3 times, which is still better than 1 to 1.5 times and its all their fault for not accepting the offer of transfer anyway.
I think my brain has just exploded!
Ginseng
PS: What would all that mean for our AVCs?
From the new AFCS booklet "Your Compensation Scheme Explained".
Page 16 - Bereavement Grant. ....... "If you die in service, the following provisions apply, reflecting the different levels of death-in-service benefits paid under the two pension schemes. " (Italics mine).
Page 30 - Comparison of benefits payable on death due to service - Attributable benefits under AFPS 75 and WPS. Death-in-service lump sum of up to approx 3 times pensionable pay. Note 6. The lump sum is increased to approx 3 times pensionable pay with effect from April 2006.
So perhaps it is 3 times rather than 4 times, and from April 06 rather than now. And what does "approx 3 times" mean? And what did the SofS actually say? What did he think he said? What was he reported as having said?
Does anyone know what is going on?
Oh dear, oh dear, oh dear. What a shambles!
Ginseng
Here's a thought. Perhaps it all means that the Death-in-Service Benefit in AFPS 75 remains at 1 to 1.5 times until Apr 06, but in the meantime they will actually pay 4 times (to equal AFPS 05), until transfer day in Apr 06, when those transfering to AFPS 05 will keep their 4 times, but those who don't and remain in AFPS 75 revert to AFPS 75, which on the same day has been raised to 3 times, so in effect they see a drop from 4 times to 3 times, which is still better than 1 to 1.5 times and its all their fault for not accepting the offer of transfer anyway.
I think my brain has just exploded!
Ginseng
PS: What would all that mean for our AVCs?
Last edited by Ginseng; 8th Apr 2005 at 22:21.
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After a bit of digging, it appears that my last post was pretty close to the truth. The current situation appears to be that the D-i-S Benefit within AFPS 75 has been raised to 3 times pensionable pay from Apr 05. Meanwhile, as an interim measure for Apr 05 to Apr 06 only, for death in that period the AFPS benefits for members of AFPS 75 will be calculated as the best of AFPS 75 or AFPS 05; in effect they would almost always be based on the 4 times pensionable salary given by AFPS 05. Hence, for that transitional year, your current AVC would buy no extra benefit. From Apr 06, you will either have transfered to AFPS 05, and hence your AVC would be unnecessary, or you would remain in AFPS 75 with the "3 times". Your AVC would presumably then need to be reassessed (if it is still allowed). What exactly will happen on the AVCs from now on remains unclear at the moment.
Ginseng
Ginseng
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Just This Once
If you are trying to say that the announcement of these policy changes was handled in a sloppy, nay shambolic, fashion then I could not agree with you more. The MoD had months to see this coming and prepare to have the answers ready. Words fail me.
Regards
Ginseng
Regards
Ginseng
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The Final Word!
Source: Internal Briefing Note 2005/19 dated 7 Apr 05.
From 6 Apr 05, D-i-S Benefit in AFPS 75 raised to 3 times Representative Pay.
For the year 6 Apr 05 to 5 Apr 06 only, for a death in service dependants benefits will be calculated on both AFPS 75 and AFPS 05 terms, and the best of the two paid.
Current D-I-S AVC premiums in AFPS 75 will be suspended for that year only.
From 6 Apr 06, those who remain in AFPS 75 will have their premiums reinstated at one-third of the current rate, to reflect the smaller gain to be bought.
It may take until end Sep 05 to stop and reimburse AVC premiums for 05/06
There you have it in a nutshell, at last
Regards
Ginseng
From 6 Apr 05, D-i-S Benefit in AFPS 75 raised to 3 times Representative Pay.
For the year 6 Apr 05 to 5 Apr 06 only, for a death in service dependants benefits will be calculated on both AFPS 75 and AFPS 05 terms, and the best of the two paid.
Current D-I-S AVC premiums in AFPS 75 will be suspended for that year only.
From 6 Apr 06, those who remain in AFPS 75 will have their premiums reinstated at one-third of the current rate, to reflect the smaller gain to be bought.
It may take until end Sep 05 to stop and reimburse AVC premiums for 05/06
There you have it in a nutshell, at last
Regards
Ginseng
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Just This Once
Didn't you know you were supposed to be a mind reader?
Futher info:
There are also 2 improvements to the War Pensions Scheme for war widows and widowers whose spouse died before Apr 73, with effect from 6 Apr 05:
An increase of £2 per week in the Supplementary Pension, over and above inflation,
in future, the war pension will not be lost on remarriage or cohabitation.
All the improvements are paid for by:
Raising the preserved pension age, for all preserved benefits earned by service after 6 Apr 05, to age 65 from 60.
Ginseng
Futher info:
There are also 2 improvements to the War Pensions Scheme for war widows and widowers whose spouse died before Apr 73, with effect from 6 Apr 05:
An increase of £2 per week in the Supplementary Pension, over and above inflation,
in future, the war pension will not be lost on remarriage or cohabitation.
All the improvements are paid for by:
Raising the preserved pension age, for all preserved benefits earned by service after 6 Apr 05, to age 65 from 60.
Ginseng
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Ginseng, thanks for all your efforts.
Despite the best efforts of my clerks, calls to Binnsworth, our parent unit, was you'll have to call Glasgow.
Call to Glasgow met with sullen Scottish lassie who denied all knowledge of any pensions revisions !!
Gave her the link to SoSs statement in the House which was met with " Well why didn't you do it"
End Result:
1.Ginseng saves the day.
Ginseng, thanks for all your efforts.
Despite the best efforts of my clerks, calls to Binnsworth, our parent unit, was you\'ll have to call Glasgow.
Call to Glasgow met with sullen Scottish lassie who denied all knowledge of any pensions revisions !!
Gave her the link to SoSs statement in the House which was met with " Well why didn\'t you do it"
End Result:
1.Ginseng saves the day.
2. I reluctantly abuse my rank and advise sullen lasses boss that if I get this sort of service what can my lads and lasses expect - apology expected in writing.
3. Binnsworth to be reminded that one stop shops means they do the research and leave me and my staff to get on with our primary duty.
4. Notice in SROs that all staff are to contact Chf Clk Binnsworth for further advice.
5. Soon to be social call on serious grown up where opportunity taken to advise that advice obtained from PPRUNE rather than the experts. What the hell will happen when we all have to call Glasgow for pers/allowances advice.
Despite the best efforts of my clerks, calls to Binnsworth, our parent unit, was you'll have to call Glasgow.
Call to Glasgow met with sullen Scottish lassie who denied all knowledge of any pensions revisions !!
Gave her the link to SoSs statement in the House which was met with " Well why didn't you do it"
End Result:
1.Ginseng saves the day.
Ginseng, thanks for all your efforts.
Despite the best efforts of my clerks, calls to Binnsworth, our parent unit, was you\'ll have to call Glasgow.
Call to Glasgow met with sullen Scottish lassie who denied all knowledge of any pensions revisions !!
Gave her the link to SoSs statement in the House which was met with " Well why didn\'t you do it"
End Result:
1.Ginseng saves the day.
2. I reluctantly abuse my rank and advise sullen lasses boss that if I get this sort of service what can my lads and lasses expect - apology expected in writing.
3. Binnsworth to be reminded that one stop shops means they do the research and leave me and my staff to get on with our primary duty.
4. Notice in SROs that all staff are to contact Chf Clk Binnsworth for further advice.
5. Soon to be social call on serious grown up where opportunity taken to advise that advice obtained from PPRUNE rather than the experts. What the hell will happen when we all have to call Glasgow for pers/allowances advice.
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4Fitter
Thank you for the praise.
To be honest, apart from the odd piece of speculation whilst awaiting further information, all the information I have passed on has been drawn from official sources open to public view, or from MoD internal material prepared for release to all members of HM Forces. Main sources have been:
Hansard, via the UK Parliament website,
Queen's Regulations, Admin APs etc, via the Defence intranet, RAF Portal etc,
MoD internet site
Defence Internal Communications Briefs,
and sundry others.
All of which goes to prove that the information is there, but you have to dig for it. The MoD should seriously consider whether it has communicated these issues very well, beyond selling the positive aspects of the "Armed Forces Pension Scheme for the 21st Century". If I am honest, I am sad that PPrune should need to be the vehicle for getting this information to a wider audience, but nothing else seems to have been very effective. If I have helped a little, then I will take pleasure in that.
Regards to all
Ginseng
To be honest, apart from the odd piece of speculation whilst awaiting further information, all the information I have passed on has been drawn from official sources open to public view, or from MoD internal material prepared for release to all members of HM Forces. Main sources have been:
Hansard, via the UK Parliament website,
Queen's Regulations, Admin APs etc, via the Defence intranet, RAF Portal etc,
MoD internet site
Defence Internal Communications Briefs,
and sundry others.
All of which goes to prove that the information is there, but you have to dig for it. The MoD should seriously consider whether it has communicated these issues very well, beyond selling the positive aspects of the "Armed Forces Pension Scheme for the 21st Century". If I am honest, I am sad that PPrune should need to be the vehicle for getting this information to a wider audience, but nothing else seems to have been very effective. If I have helped a little, then I will take pleasure in that.
Regards to all
Ginseng
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Ginseng,
I acknowledge that the info is there but do we have the time to find it.
I am more annoyed for SAC Snooks and Cpl Smith that if I get the bums rush, what will they get ?
Customer service ! The social call awaits.
I acknowledge that the info is there but do we have the time to find it.
I am more annoyed for SAC Snooks and Cpl Smith that if I get the bums rush, what will they get ?
Customer service ! The social call awaits.
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4Fitter
Point taken. Glad I haven't got your job.
Apologies to all for one slip up. The effective "service from" date for raising of the preserved pension age is 6 Apr 06, not 6 Apr 05 as I stated. Nobody's perfect ...................
Ginseng
PS: The briefing note is, as I said, dated 7 Apr 05. As far as I could tell it only appeared on the Defence intranet in the last 36 hours or so, and I have not seen a paper copy. Says it all ............
Apologies to all for one slip up. The effective "service from" date for raising of the preserved pension age is 6 Apr 06, not 6 Apr 05 as I stated. Nobody's perfect ...................
Ginseng
PS: The briefing note is, as I said, dated 7 Apr 05. As far as I could tell it only appeared on the Defence intranet in the last 36 hours or so, and I have not seen a paper copy. Says it all ............
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JSP 764
JSP 764 is now on the MoD website (see my posts at the thread "AFPS05".
On AVCs, it confirms that those apaying D-i-S AVCs in AFPS75 will have their premiums stopped if they transfer to AFPS05, but will receive no refund of past premiums because of their "insured" nature.
Of interest, if you are paying for other"in-scheme" AVCs in AFPS75, which were designed to produce a monetary benefit in your pension, which are no longer required once you have transfered to AFPS05, then at transfer you will be allocated extra notional years of service in lieu of refund of your past premiums. This is very welcome news - not that it affects me.
Still digging
Regards
Ginseng
On AVCs, it confirms that those apaying D-i-S AVCs in AFPS75 will have their premiums stopped if they transfer to AFPS05, but will receive no refund of past premiums because of their "insured" nature.
Of interest, if you are paying for other"in-scheme" AVCs in AFPS75, which were designed to produce a monetary benefit in your pension, which are no longer required once you have transfered to AFPS05, then at transfer you will be allocated extra notional years of service in lieu of refund of your past premiums. This is very welcome news - not that it affects me.
Still digging
Regards
Ginseng
