Can CSA use lump sum payment on retiring from HM Forces

salbee1964

Hello, apologies if this thread is repeated but I can't find it on the forum...Well, my hubby is in the armed forces and will get a lump sum on retirement. He has served his full amount of years and is currently being extended for 5 years. He would like to leave but is scared the CSA will take some of his lump sum away from him. We have been paying for 13 yrs under old rules. I would really appreciate any solid advice as it is almost impossible to get a straight answer from the helpline...:rolleyes:

Thanks in advance

CMAC_2

salbee1964 wrote: »

Hello, apologies if this thread is repeated but I can't find it on the forum...Well, my hubby is in the armed forces and will get a lump sum on retirement. He has served his full amount of years and is currently being extended for 5 years. He would like to leave but is scared the CSA will take some of his lump sum away from him. We have been paying for 13 yrs under old rules. I would really appreciate any solid advice as it is almost impossible to get a straight answer from the helpline...:rolleyes:

Thanks in advance

The Commission can not take your partners lump sum payment into consideration however in 52 weeks time they can look at the interest ( thats if there is any) His ex could apply for Assets over 10k (departure Diredtion) which are able to produce a income but again if you can show that you are doing something that is reasonable with the cash ie use it to resettle in civy street you be fine.

carolp_2

You are in the position we were in at the start of the year - I am ex Army and my hubby just finished 22 years in April. The CSA cannot touch your lump sum as they are not allowed to take any tax free allowances or income into account in assessments (we got that info from a senior manager in the CSA who works in a team that specialise in dealing with HM Forces). If you are having any CSA probs speak to Army Welfare they are working with the CSA to help sort out any problems and can get you a face to face interview with a CSA rep (even if you are in Germany or Cyprus). Its well worth doing and Army Welfares support is fantastic.