Underpaid pension.
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Underpaid pension.
Attended a Veteran's breakfast today and had a brief from an ex pay corps Major. He left at age 50 and having turned 55 a few months back had an increase in pension. This should have been a restoration to full pension plus an adjustment for inflation. It transpires that he got the inflation element but not the restoration. He checked a colleague in a similar position and found the same applied. They challenged this and and have had money paid to them. Their investigation so far has shown that the restoration comes about as a result of a manual input that hasn't been done. He has passed this up the chain so watch this space. If we have any pension experts on this forum(surely?) I invite them to comment. It could apply to a number of pruners.
Not sure what happens on all pension schemes but as far as I'm aware, on AFPS75, if you leave early and take a full Immediate Pension (IP), the only uplift you get at the 55 point is the adjustment for the cumulative inflation applied since pension payment commenced? That is what my figures showed anyway (although I rejoined prior to 55 so wont get that uplift in my case). However - if you commute the IP (i.e reduce the IP and 'offset; it until age 55), you should then return to the original figure at 55 plus the inflation adjustment. Just my view - may be wrong so don't take to be financial advice etc etc
Last edited by Sandy Parts; 5th Nov 2018 at 16:40. Reason: mixed up my commute/commutated/commutating tenses - 100 lines punishment doled out
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Should have included that this applies if you commuted at your exit point. Never really heard of anyone who didn't exercise this option but I suppose it could happen. The point being your reduced pension should become full at 55 when you've repaid your commutation. This appears to be what is not happening
With AFPS05 it would be EDP (which is index linked) until 65 then full pension.
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I had a forecast done by Glasgow in feb. They said £10,000 in July (lost half in divorce), I’m now getting just over 7,000. Big error from forecast 2 months before
I have checked with colleagues at FPS HQ and can confirm that we received details of one such case at the end of last week. We are in touch with Veterans UK about the case in question but, if you took Resettlement Commutation and your AFPS 75 pension was not restored to its pre-commutation level at age 55, please send me a PM with details and we will raise all the cases we know about together.
Not of any relevance to the OP's question, but I thought I would post this out of interest as an indication of the affects of inflation over the years
I left the RAF in January 1977, a few days after my 30th birthday. As I had left under the terms of the 1975 redundancy scheme I was entitled to a pro rata pension, payable immediately. This was calculated at 9/16 of the pension which would have been payable at my 38/16 point, and came to £68.08 per month. I was paid this amount monthly until my 55th birthday, when it picked up all the intervening increments. I now receive £479 per month, which looks a lot better than £68.08, but in real terms it is probably little different. Incidentally I have been receiving a pension for 41 years now, 29 years longer than my period of service. I know that when I was first commissioned I was the youngest officer in the RAF, and I sometimes wonder if I was the youngest ever RAF pensioner!
I left the RAF in January 1977, a few days after my 30th birthday. As I had left under the terms of the 1975 redundancy scheme I was entitled to a pro rata pension, payable immediately. This was calculated at 9/16 of the pension which would have been payable at my 38/16 point, and came to £68.08 per month. I was paid this amount monthly until my 55th birthday, when it picked up all the intervening increments. I now receive £479 per month, which looks a lot better than £68.08, but in real terms it is probably little different. Incidentally I have been receiving a pension for 41 years now, 29 years longer than my period of service. I know that when I was first commissioned I was the youngest officer in the RAF, and I sometimes wonder if I was the youngest ever RAF pensioner!
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