Commutation not a right?
Hellbound
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Join Date: Mar 2006
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Commutation not a right?
Latest rumour is that commutation sums are taking up to a year to pay and that grumpy personnel are being told it is a privilege and not a right. Any thoughts? Any good solicitors?
I don't own this space under my name. I should have leased it while I still could
Commutation is indeed a privilege and not a right as it is based on actuarial tables. If it is assessed that your life expectancy is low because you are a smoker, and known to suffer from a life threatening illness then it does not make sense to pay you your pension in advance.
The tables are based on your age at application. The good news is that they do use this earlier age even though you may have passed your birthday when they pay you.
It took, IIRC, about 3 months for mine but may be there are more applicants and fewer staff now!
The tables are based on your age at application. The good news is that they do use this earlier age even though you may have passed your birthday when they pay you.
It took, IIRC, about 3 months for mine but may be there are more applicants and fewer staff now!
Join Date: Nov 2006
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Doesn't matter if it is a privelidge or not, it is the right thing to do.
If you are on the right terms of service, it is definitely the right thing to do. After 39 years of service and being as fit as a butchers apron, I commuted the max (£3k), accrued approx £54k. 2 years later my pension has gone up by 50% of what I commuted.
Happy day's, only 2 years to parity.
P
edited for spelling
Happy day's, only 2 years to parity.
P
edited for spelling
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Hope this helps.
There is a lengthy doc online about commutation, some unusual and arcane rules. Lots of info but worth reading so that your application does not get held up. I found it by searching the defence net. Did you know that there are limitations on what you are allowed to spend it on? Or that commutation can be stopped if you if you are bankrupt or under a Receiving Order. There is also a health requirement. If you bust the rules, you can make yourself liable for income tax on the amount received!
Mine was paid at the same time as my gratuity 2 weeks after leaving. You cannot ask for 'the max', you have to give an exact amount. Step one is to request a pension forecast from PPPA with the max amount available for commutation. Transfer that figure onto the commutation application form and Bob's your uncle.
I passed this advice on to several friends in the same boat, and all got their cash on time, so the moral of this little dit is play by the rules when it is something that really matters.
There is a lengthy doc online about commutation, some unusual and arcane rules. Lots of info but worth reading so that your application does not get held up. I found it by searching the defence net. Did you know that there are limitations on what you are allowed to spend it on? Or that commutation can be stopped if you if you are bankrupt or under a Receiving Order. There is also a health requirement. If you bust the rules, you can make yourself liable for income tax on the amount received!
Mine was paid at the same time as my gratuity 2 weeks after leaving. You cannot ask for 'the max', you have to give an exact amount. Step one is to request a pension forecast from PPPA with the max amount available for commutation. Transfer that figure onto the commutation application form and Bob's your uncle.
I passed this advice on to several friends in the same boat, and all got their cash on time, so the moral of this little dit is play by the rules when it is something that really matters.
