Army pension what's the formula?

alfiesmum

Hi everyone. A request for help from my brother!
He's trying to work out what his army pension will be (in todays money of course), when he reaches 60. I've found online booklets that explain some things about it, but none actually say what the pension amount will be. i.e. 1/80th or 1/60th of corporals present day wage x number of years served.

Does anybody have a rough idea of how it's calculated please?

Thanks
alfiesmum
xx

Andy_L

Which scheme is he in?

If it's AFPS 05 ( the new one) its an annual pension of 1/70ths of his final salary x years of service and a (tax free) lump sum of 3x that pension.
This will be paid either at the age of 65 (but with RPI increases inbetween) or, if he serves till the age of 40+ with 18+years of service 50% of that pension is payed immediatly.

If he's in the old one (AFPS 75) it's similiar except:
Pension age is 60 not 65.
To get the immediate pension you need 16 or 22 years service (Officer/other rank)
Instead of your final salary it's based on rank & length of service

http://www.mod.uk/DefenceInternet/AboutDefence/WhatWeDo/Personnel/Pensions/ArmedForcesPensions/

alfiesmum

Hi Andy,
Many thanks for your reply. He was a corporal, serving from age 16 in 1979, for a total of 9 years. He says it rings a bell that the pension starts at age 60, so it must be the AFPS 75 that he's on then?
Thanks again
alfiesmum
xx

Andy_L

If he contacts the Service Personal & Veterans Agency
http://www.veterans-uk.info/about_us/about_us.html
they will be able to help him

alfiesmum

That's brill Andy, many thanks. I'll pass that onto him, and he can start to get an idea of what retirement holds a few years from now!
I appreciate your time very much, thank you.

alfiesmum
xx

neil9313

alfiesmum wrote: »

Hi Andy,
Many thanks for your reply. He was a corporal, serving from age 16 in 1979, for a total of 9 years. He says it rings a bell that the pension starts at age 60, so it must be the AFPS 75 that he's on then?
Thanks again
alfiesmum
xx

I dont think he gets a pension, didnt you have to do at least 12 years?

alfiesmum

Nope it's atleast 2 years as far as we've been able to establish so far.

Andy_L

neil9313 wrote: »

I dont think he gets a pension, didnt you have to do at least 12 years?

That was the pre-1975 scheme

Sparky29

neil9313 wrote: »

I dont think he gets a pension, didnt you have to do at least 12 years?

You getting confused with serving 12 years to get your lump sum when you signed off?

TREVORCOLMAN

alfiesmum wrote: »

Nope it's atleast 2 years as far as we've been able to establish so far.

Any service over 2 years = preserved pension at 60.

As has been said you need to check with the pension service to get a proper answer of the value.