Armed Forces Pension Scheme Lump Sum and Child Support Payments

Trying_to_be_good

I'd originally posted in the Armed Forces forum, but it's bene suggested I post here, too, for you CSA specialists.

Thanks in advance for reading.

With the prospect of redundancies in the Armed Forces, can anyone please advice how the terminal grant/lump sum of an Armed Forces pension (the tax-free three-times annual pension payment, AFPS75, if that matters) would be treated for CSA maintenance calculations?

Is it treated as normal income, with a percentage going to the ex-wife? Or is it separate (as its a terminal grant and the long-term planned use is to pay off a mortgage this would seem justified - we hadn't planned on my OH leaving for sometime yet)?

There is no pension sharing arrangement - it was a clean break settlement, so the ongoing payments are for the children's maintenance. The plan would be to keep paying those payments.

I guess the same question applies for any redundancy payment itself, too.

thanks

febe

hi

redundancy lump sum payments are not treated as income ( on cs1 any interest earned from the sum is treated as income), money in lieu of notice is treated as normal income.

hth

Trying_to_be_good

febe wrote: »

hi

redundancy lump sum payments are not treated as income ( on cs1 any interest earned from the sum is treated as income), money in lieu of notice is treated as normal income.

hth

Thanks, febe. I'm not sure how the sum is made up, so will need to do more homework. The CSA site makes a reference to statutory minimum redundancy being exempt, but money over that being included as income. The problem with the Armed Forces is that their entire redundancy scheme is statutory, so I don't know if it's all exempt from CSA calculations.