I wonder if all this applies to MP's Pensions? Did anybody read the really small print?

It has been in the Paymaster newsletter that you get yearly for at least the last 10 years

radar 101

What Paymaster newsletter that is sent every year?

Apologies Caz I mean the "SP&VA AFPS Newsletter" - I always think of it as originating from the Paymaster.

radar 101

Thanks for that - there is always a possibility of postage being misdirected to Overseas Locations.

Catchy little title isn't it?

Hi Radar 101
Thank you for:-

'It has been in the Paymaster newsletter that you get yearly for at least the last 10 years.'

I have the 2010 and 2011 newsletters in front of me, can you please direct me to the section that refers to 'NI Modification Rules' that relates to people who served before 5/4 1978. I retired in 1976. I can see the GMP section but that only refers to service since 5/4/1978
Either I'm blind, thick and stupid or all three but I cant find any mention of 'NI Modification Rules'.
Appreciate your direction.
Thank you
***

Another Gotcha
 

Come next April those newly drawing pensions will discover another subtlety of the system.

The first annual pension increase is factored by the time between retirement date and the day of the increase, so those who retire later in the financial year get a smaller pension the following year (and every year thereafter) than those who retire earlier in the year. This despite a nominal pension revision once a year to take up inflation, which builds up over the year, but the later you retire in the year the less the first increase accounts for inflation. When I queried this, I was told it was due to an announcement in parliament by Maggie and that there was no way out of it.

And if they are still staging pay rises like they were in the year when I retired, those who retire before the 2nd stage only get the stage 1 pension.

In my case this amounted to an initial reduction of several hundred pounds a year compared to the full award.

xtp,
Have you done the maths, or do you know which is the best date in the year to retire on in order to maximise the pension?
It may be of interest to anyone who wishes to 'dictate to management' (replace with 3 letter acronym) the day on which they hang up their bag of loyalty pills.
CNN :ok:

They have to find the money for MP's and Lords perks from somewhere!!:mad:

@xtp
 

You want to see subtlety? It took me weeks to summon up the courage to get my head around this little AFPS gem..

http://www.legislation.gov.uk/uksi/2...0111364_en.pdf

Ok, here's the easy version!!

http://www.legislation.gov.uk/uksi/2...0111364_en.pdf

Al R

It seems perfectly reasonable to me as it complies with Standard Government Policy in respect of matters such as this:-

"Complicate where possible - Confuse where not."

If the pension increase is not staged, then those whose birthday/retirement date is soon after 6 April will get the maximum increase the following April.

I have not done the sums to see if the loss of pension from retiring early is offset by that extra increase, but somehow I doubt it will be.

If the pension increase is staged, then most likely the best date will slip from the April date to immediately after the stage increase given that the staged increase more than offsets the loss due to the time calculation.

In my case I lost out twice because my obligatory retirement date was just before the staged increase to complete the year's pay award. I would definitely not recommend being caught like that if you can avoid it.

Al R:
Easy version? We don't need no stinkin easy version! Everything here is in perfectly good order, boys and girls. Nothing happening here, we've all got homes to go to. Come along now Ladies and Gentlemen, move along please!
As Benzimra says, this applies to all UK Occupational Pension Schemes, you hit SRA and the good news is that the Government are paying back a little of what they've taken off you all your working life. The bad news is that your Employer's Pension takes a hit as so clearly and lucidly described in Al's link. Simples!
Hope all is well, Al, old bean. Good to see Mr Gibb's dream coming true at last!

Al R

The links appear to be AFPS 05 only?

LJ

As someone who served from 1960 to 1971 whose service pension entitlement is £0.0 per annum can anyone give me reassurance that, under the new rules, this will not be recalculated to a negative figure requiring me to set up a DD in favour of the MoD?

Shak37, now why did you have to go and say that? You've got me worried now. 1959-73, Gross Pension £0.00. You don't really think they could do you? I mean, they wouldn't would they? Al? Al? Oh dear, oh dear, oh dear. Oh dear, dear, dear......

One way round this issue for those in the colonies is not to take the UK Pension and instead go for your country of residences pension instead.

That way you don't end up with a frozen (non-indexed linked) UK OAP and your military pension abated but have, in my case, NZ Superannuation (increasing) plus my full UK service pension.

Strangely, at current rates, NZ Super is actually more than the UK OAP after tax for me as well :)

I'm not sure that works in Oz. I think that if you have entitlement to a UK OAP then that should be accessed and can only be topped up by the Oz pension if it gets to a stage where you become bereft of funds because of the freezing rules. Additionally, I think that the receipt of an Armed Forces Pension puts you outside the means tested figures for an Oz pension.

Somebody please tell me I'm wrong.

In NZ anyway the Super is not means tested and I have a choice on which to access - UK or NZ as I will be qualified for both. UK from NI payments and NZ from time in the country