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!

[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]

Originally Posted by 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

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]

Originally Posted by 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!

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]

Originally Posted by 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.

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]

Originally Posted by Party Animal

.....
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.