MOD Pension Debacle
Not such a bad idea.
Does anybody else remember when I said, a couple of years ago, that the MOD could pay 25 maths graduates £40,000 a year to take in a case load each to work out bespoke forecasts for every affected individual.
For a million quid (or more if you got more volunteers) we could have sorted this rubbish out ages ago.
BV
For a million quid (or more if you got more volunteers) we could have sorted this rubbish out ages ago.
BV
After reading the posts above it seems only RS prior to april '97 is subject to this gotcha....which I still don't fully understand.
'''Another confused post by orionsbelt!! It’s to do with COPE, but not since the NI changes in 2016.
if you have concerns use the HMRC site, and look at your records. I get my pension back up to full amount next year.'''
See below for MOD Response received by My MP in August 2011. Further I suggest that this forum would be a much nicer place if people kept there irrelevant comments to them selves.
For those other sensible people with genuine questions I hope this helps. Its an OCR scan of the letter received.
***MINISTRY OF DEFENCE
FLOOR 5 ZONE B MAIN BUILDING
WHITEHALL LONDON SW1 A 2HB
Telephone: 020 7218 9000 (Switchboard)
THE RT HON ANDREW ROBATHAN MP
MINISTER FOR DEFENCE PERSONNEL WELFARE AND VETERANS
Our ref: D/Min(DPWV)/AR MCxxxxxxxxxxxxxxxx
\ \ August 2011
Thank you for your recent letter, signed by a member of your staff, enclosing correspondence from your constituent, xxxxxxxxxx---xxxxxxxx about the reduction in his Armed Forces Pension under the National Insurance Modification rules.
The reason for the abatement to xxxxxxxxx pension goes back to 1948 when the National Insurance (NI) Scheme was made compulsory for ail employed personnel. When flat rate benefits were introduced, the Government took the view that, to avoid over-provision of pension benefits, account should be taken of other benefits payable at the State Retirement Age (SRA).
All employers with occupational pension schemes were required to modify their schemes to take account of the contributions and benefits payable under the NI Scheme.
As a result, on reaching SRA, the Armed Forces Pension Scheme (AFPS) pension of Service personnel who enlisted on or after 1 July 1949 is reduced by £0.8708 per annum for each complete year of reckonable Service between 30 June 1949 and 1 April 1980. This reduction is referred to as the NI Modification rules. In addition pensioners, like XXXXXX, who also contributed to the Graduated Pension Scheme (GPS) whilst in the Service during the period 3 April 1961 to 5 Aprii i 975, have their Armed Forces pension reduced by the amount of the basic graduated pension (also payable at SRA as State benefits) earned by their graduated contributions. This reduction is known as a GPS abatement.
Officials have confirmed that XXXXXXXXX' AFPS pension has been correctly reduced in line with the rules governing both the NI and GPS Schemes at the time of his Service. I can assure both you and XXXXXX that the reductions applied are not as a consequence of him having paid insufficient NI contributions during his Armed Forces Service. However, it is also the case that the State pension XXXXXX has been receiving since attaining SRA on XXXXX 2011 will have been enhanced by the contributions he made to the NI and GP Schemes.
I hope this reply is helpful and explains the position.
XXXXXXXXXX
Private Secretary
if you have concerns use the HMRC site, and look at your records. I get my pension back up to full amount next year.'''
See below for MOD Response received by My MP in August 2011. Further I suggest that this forum would be a much nicer place if people kept there irrelevant comments to them selves.
For those other sensible people with genuine questions I hope this helps. Its an OCR scan of the letter received.
***MINISTRY OF DEFENCE
FLOOR 5 ZONE B MAIN BUILDING
WHITEHALL LONDON SW1 A 2HB
Telephone: 020 7218 9000 (Switchboard)
THE RT HON ANDREW ROBATHAN MP
MINISTER FOR DEFENCE PERSONNEL WELFARE AND VETERANS
Our ref: D/Min(DPWV)/AR MCxxxxxxxxxxxxxxxx
\ \ August 2011
Thank you for your recent letter, signed by a member of your staff, enclosing correspondence from your constituent, xxxxxxxxxx---xxxxxxxx about the reduction in his Armed Forces Pension under the National Insurance Modification rules.
The reason for the abatement to xxxxxxxxx pension goes back to 1948 when the National Insurance (NI) Scheme was made compulsory for ail employed personnel. When flat rate benefits were introduced, the Government took the view that, to avoid over-provision of pension benefits, account should be taken of other benefits payable at the State Retirement Age (SRA).
All employers with occupational pension schemes were required to modify their schemes to take account of the contributions and benefits payable under the NI Scheme.
As a result, on reaching SRA, the Armed Forces Pension Scheme (AFPS) pension of Service personnel who enlisted on or after 1 July 1949 is reduced by £0.8708 per annum for each complete year of reckonable Service between 30 June 1949 and 1 April 1980. This reduction is referred to as the NI Modification rules. In addition pensioners, like XXXXXX, who also contributed to the Graduated Pension Scheme (GPS) whilst in the Service during the period 3 April 1961 to 5 Aprii i 975, have their Armed Forces pension reduced by the amount of the basic graduated pension (also payable at SRA as State benefits) earned by their graduated contributions. This reduction is known as a GPS abatement.
Officials have confirmed that XXXXXXXXX' AFPS pension has been correctly reduced in line with the rules governing both the NI and GPS Schemes at the time of his Service. I can assure both you and XXXXXX that the reductions applied are not as a consequence of him having paid insufficient NI contributions during his Armed Forces Service. However, it is also the case that the State pension XXXXXX has been receiving since attaining SRA on XXXXX 2011 will have been enhanced by the contributions he made to the NI and GP Schemes.
I hope this reply is helpful and explains the position.
XXXXXXXXXX
Private Secretary
UK CPI for August 6.7% - below expectation of 7.0% - but still likely to be above 6.0% - perhaps even 6.5% - in September determining the Armed Forces pension rise from April 2024
Yellit
Are you trying to say that you have been owed £100k+ for over a year and you haven’t been kicking and screaming and beating doors down?
Did you complete the pension form like you were told to?
I honestly can’t understand how you are this far down the line and haven’t sorted it yet. I was making daily emails and phone calls once I had gone a day beyond the expected payment date.
I would suggest you need to pull your finger out and work the problem. I don’t think the pension society need to get involved. I think you need to show some initiative.
Sorry for the tough love but I think it’s what you need!
BV
Did you complete the pension form like you were told to?
I honestly can’t understand how you are this far down the line and haven’t sorted it yet. I was making daily emails and phone calls once I had gone a day beyond the expected payment date.
I would suggest you need to pull your finger out and work the problem. I don’t think the pension society need to get involved. I think you need to show some initiative.
Sorry for the tough love but I think it’s what you need!
BV
I was not expecting the Lump sum when I left,
10% for my state pension and 6.7% for my military pension. I would have preferred it t’other way about.
10%? I don't think so!
Assuming the government sticks to its triple lock policy, State Pensions are expected to rise by 8.5% in April 2024 in line with earnings.
Assuming the government sticks to its triple lock policy, State Pensions are expected to rise by 8.5% in April 2024 in line with earnings.
Final percentage will not be known until the budget statement. It will be the higher of three factors:
Consumer Price Index (CPI)
Wage growth
2.5%
Wage growth is currently winning at 8.5%. The govt are reneging on the Triple Lock gaurantee and considering stripping out bonuses from annual wage growth figures. That would bring the rate down to approx 7.8%
In a nutshell; pensions will increase in line with wage growth of either 7.8% or 8.5% depending on bonuses in or out of the calculations.
Gentlemen, start your calculators.
Consumer Price Index (CPI)
Wage growth
2.5%
Wage growth is currently winning at 8.5%. The govt are reneging on the Triple Lock gaurantee and considering stripping out bonuses from annual wage growth figures. That would bring the rate down to approx 7.8%
In a nutshell; pensions will increase in line with wage growth of either 7.8% or 8.5% depending on bonuses in or out of the calculations.
Gentlemen, start your calculators.
Another pay cut! If I wasn’t already retired, I would go on strike!
'Triple Lock' increase of 8.5% for State Pensions has now been confirmed in the Autumn Statement!
Confirmation that Armed Forces Pensions will rise by September 2023 CPI figure of 6.7% in April 2024 will probably be announced early next year.
Confirmation that Armed Forces Pensions will rise by September 2023 CPI figure of 6.7% in April 2024 will probably be announced early next year.
