commutation of pension

Hello - hoping for a bit of advice. My OH is leaving the army after 13 1/2 years service and we are getting next to no hep/advice from resettlement officer or admin clerks. He has his pension form to fill and return before he leaves which asks about commutation of pension. Now I know this may be a daft question but what does that exactly mean? Also I don't know if he would qualify for that because from what we have heard it only applies to people leaving aftre 22 years service and in a position to receive an immediate pension but again have had confliciting answers. He is only 32 but if he did take a lump sum do they tell you how much or do you decide how much to take or is it best left alone and for him to get his pension when he turns 60? Sorry so many questions, didn't think it would be this hard!


  • edited 14 July 2010 at 1:52PM
    moleratmolerat Forumite
    29.1K Posts
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    edited 14 July 2010 at 1:52PM
    I can't see him getting an immediate pension as he has not completed 22, I assume he is on AFPS75 and not 05. What grounds is he being discharged on ?

    Here is a link to the booklet

    Commutation rates
  • edited 14 July 2010 at 1:50PM
    esmf73esmf73 Forumite
    1.8K Posts
    edited 14 July 2010 at 1:50PM
    Found this on page 14 of the above link:
    " commutation means giving up
    part of your pension in return for a lump sum. It is
    not an automatic right: you have to apply for it.
    There are 2 forms of commutation: resettlement
    commutation and life commutation."

    Its a mine field. Am in the same boat - but OH is useless at passing information on to me - leaving me to panic about it. Friend of mines husband recently left and they were still changing the figures they gave him, even after he'd signed on the dotted line. End result - he got a lot less than he'd expected to get and has had to work in the UK whilst his wife lives in Canada with the kids - not great for him.

    Can't you go to one of these meetings with your OH - or talk to the families officer - My OH is out 3 April next year OMG
    2014 will be all about ME!
    ( well that hasn't happened!!!)
    Mortgage free. Will be debt free in Nov 2014. Credit card £250
  • Clarey22Clarey22 Forumite
    35 Posts
    I know he won't receive an immediate pension but wasn't sure if you were only able to commute your pension if you had done the full 22 years or whether it was still an option for him and really how much it effect things. He is not being discharged but leaving of his own accord due to army life having changed over the last few years. He is on AFPS75 scheme.
  • BoblBobl Forumite
    695 Posts
    Part of the Furniture 500 Posts Combo Breaker
    Commutation is about reducing your monthly pension payments until age 55 where it then returns to a full pension, therefore if he is not entitled to a pension immediately he will not be able to commute.

    If you not getting the advice you need, speak to the Royal British Legion, I found them very helpful when I left.
    Life is too short to drink bad wine!
  • martinbuckleymartinbuckley Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    He wont get an immediate pension, so commutation is not an option.
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