Pension and Pay Off Advice Pls?

footballmanagerwidow

Hi All,

My husband and I are looking for some much needed advice. My husband has now done 15 years in the army and thinks he's now had enough. He hasn't taken any steps towards signing off yet and before he does we just wanted to see if we could get any info in regards to his pay off and pension entitlements. He is at the rank of Cpl. Camp is now shut down for Xmas leave so he can't go and see anyone in the RAO for info and we'd like to discuss our possible options over his time off. Does anyone know where I could find this information out online or does anyone have any personal experiences having served a similar length of time?

Many thanks.

footballmanagerwidow

to follow up:

I've found the pension calculator on Armynet, but im so confused because my other half swears that he's going to get a lump sum upon his leaving but I cant find any mention of that anywhere - only a lump sum at 65... confused!

badgerhead

dpends what pension scheme he's on, but i always thought when you hit 12 years it was a lump sum of 10 grand, or maybe half ur annual wage, then pension of ur x amount years when 65,

footballmanagerwidow

in the pension calculator on AN it states the Resettlement Grant is just over £10K and a lump sum at 65 of 22K with a pension of 8K...we're assuming the RG mentioned is the "lump sum" he assumes he's gonna get. Thanks for your reply though.

samm1551

My husband is in a very similar position. Assuming your hubby is on the 1975 Pension, and not the 2005 version this is what I understand. Your hubby would get a lump sum at 60 & at 65. A lower rate pension at 60 and the maximum pension at 65. The resettlement grant is NOT a lump sum payment (I originally thought it was too) it is an amount that your husband is able to claim up to for course's, accomodation for course's, travel, etc. It took me a while and asking a few questions of clerks to get it, but I think I am nearly there .. ha ha. If I am wrong please can someone correct me because I would not like to give the wrong information.

Good Luck whatever your choice.

Me xx

southendwill

As I understand it, sam1551 is correct. If your husbannd has 15 years continuous service(no break in service),and provided
he didn't opt into 2005 scheme(He would have to elect to do so, with a lot of form filling),then he is in AFPS 75,with
lower pension from 60,increased rate at 65. If you use pension calculator again ensuring you select AFPS 75 option,you
should get accurate forecast. hope this helps. Good Luck whatever you decide.

footballmanagerwidow

thanks for your help, but to be honest this new information has thrown me a bit to say the least! I can't believe he's going to get nothing to help us set up this totally new life. We've got no savings....how on earth are we going to manage to get somewhere to live? He is adament he can't do another tour - we've only been married 3 years and for the last 5 years he's been in static posts (long story!) - we've now got 2 children of our own aged 1 & 2 and he can't face going back into the field army now they're around. I know he has to do what's best for him, but part of me is willing him just to do the last few years to give a chance to get some money behind us before he leaves...but i'm not the one that has to leave my family behind for 6 months whilst I go and hunt out IED's am I?!

andy208833

Don't do it!!

I was in a similar position, got fed up at 15 years and really really wanted to leave so i submitted my notice... however i then asked for a pension forecast (i was staff sgt rank equivalent) and the money on offer for completing your 22 if you are on AFPS75 is just too much to give up. If you leave at 15 you get a resettlement grant which i think is circa £12k then a pension at 65 which would be 15/32nds of a pension.

I changed my mind and fortunately in 2002 they let me stay in the navy and i completed my 22 years (which flew by) and now have a pension at 40 and got a substantial lump sum £50k+

That penison means my bills are paid before i even get out of bed each month and anything i earn is a bonus.

Go here for a pension forecast that is actually pretty accurate so that you know what you are giving up:
http://www.mod-pc.co.uk/

Fill in a few details and you will get an answer, your hubby should know all the relevant detail.

Also bear in mind that post SDSR if you hubby submits notice and then changes his mind he is unlikely to be allowed to withdraw it especially now they are announcing redundancies.

Best thing i ever did was to complete my 22 years, it has made things much much easier.

Of course if your hubby simply can't stand staying then leave and things will work out.

andy208833

Having done a quick whizz through the calculator for AFPS75 (and making a few assumptions) i reckon you would get approx:
Terminal Grant £28761 (tax free)
Pension £9587 (taxable) a year

or if you decide to fully commute and take a reduced pension for 15 years:
Terminal Grant £44000 approx
Pension £7982 (taxable)

Of course the above assumes no promotion, if he gets promoted and does at least 2 years in the rank then the figures go up. The figures also go up each year when the pay rise is announced.

Having said all that can't say i would want to go looking for IED's either and it was hard enough going away every year for 9 months but the last 7 years absolutely flew by, honestly....

samm1551

footballmanagerwidow wrote: »

thanks for your help, but to be honest this new information has thrown me a bit to say the least! I can't believe he's going to get nothing to help us set up this totally new life. We've got no savings....how on earth are we going to manage to get somewhere to live? He is adament he can't do another tour - we've only been married 3 years and for the last 5 years he's been in static posts (long story!) - we've now got 2 children of our own aged 1 & 2 and he can't face going back into the field army now they're around. I know he has to do what's best for him, but part of me is willing him just to do the last few years to give a chance to get some money behind us before he leaves...but i'm not the one that has to leave my family behind for 6 months whilst I go and hunt out IED's am I?!

Not being funny, but he signed on the line to do that job. Whilst it may not be a pretty one it is one that pays (and I will take it on the chin that it does not pay very well). If he really doesn't want to do that any more there are other options, transferring, posting (which sometimes avoids deployment) for example. This may not be ideal but it sure as hell beats being homeless with no money. Especially as you have two young children to pay for as well.

Now, my husband has been expressing the same desires as yours, and I have told him exactly what I have written above. I have also told him that he has to act instead of talk about it because he is driving me nuts.

If, however your husband is adament he wants out then I suggest you start saving like mad and check out the benefit websites and such like asap so you know exactly what you are entitled to. I would also think about updating your CV so your ready to contact employment agencies/prospective employers when you know where you will be settling. If you will need childcare check out Ofsted website who have a list of locally registered childminders (I always found them better than nurseries).

Also contact Ssaffa/RBL. I read somewhere that they can help with the loan of a deposit on a house/flat for rent (Can't remember where though).

Sorry to sound so tough, but unfortunately unless you do the full 22 you don't get much help financially or otherwise.

Me xx

Ps Good luck whatever happens

batch.rhodes

Hi,

The IRG is just over 10 grand and is payable to all leaving thta have completed more than 12 years but are not entitled to an immediate pension. i.e. personnel leaving after less than 22 years on the AFPS75 and less than 18 years on the AFPS05. It is non taxable and entirely up to yourself what you spend the money on or just put in your bank account to save. Although called resettlement it is not to be confused with the money allowed to complete courses etc.