Royal Navy Pensions

Navywife1975

Can anyone help clarify something for me. Hubby served 17 years in RN. Was awarded pension on leaving and commuted part of it. At that time we are sure we were told that no increases would be paid until age 55 when any increases accrued would be paid in a lump sum at age 55 when the pension would go up to the amount at that time!!

Hubby is 55 later this year and he asked for an update on the amounts due. Told what his pension would go up to following his birthday but no lump sum of increases would be paid.

We appreciate no increase would be due on the commuted pension but for 15 years his pension did not increase although there had been increases awarded. Why is hubby not getting these increases as we were lead to believe??? Where did this money go??

Has anyone come across this???

molerat

He will get an increase to the full pension at discharge increased with inflation. There is and never has been a lump sum payment. You obviously misunderstood what you were told.

http://www.mod.uk/NR/rdonlyres/73C97FDF-BCDA-4B3F-A686-CA8533FD52BC/0/afps75_mmp106_your_pension_scheme_explained.pdf

My estimate of my age 55 pension was £18 p.a. out, not bad for a 15 year compound calculation

TREVORCOLMAN

molerat wrote: »

He will get an increase to the full pension at discharge increased with inflation. There is and never has been a lump sum payment. You obviously misunderstood what you were told.

http://www.mod.uk/NR/rdonlyres/73C97FDF-BCDA-4B3F-A686-CA8533FD52BC/0/afps75_mmp106_your_pension_scheme_explained.pdf

My estimate of my age 55 pension was £18 p.a. out, not bad for a 15 year compound calculation

I thought you had to serve 22 years to get an immediate pension, ah must be an officer.

My understanding is that you get no increase till you are 55. Then the rate of inflation of September each year since he left the service is added back and paid from age 55. Inflation increases are added there after.

Mind you the current government are going to steal part of it when the increases change from RPI to CPI.

Navywife1975

TREVORCOLMAN wrote: »

I thought you had to serve 22 years to get an immediate pension, ah must be an officer.

My understanding is that you get no increase till you are 55. Then the rate of inflation of September each year since he left the service is added back and paid from age 55. Inflation increases are added there after.

Mind you the current government are going to steal part of it when the increases change from RPI to CPI.

Hubby was made redundant in 1993 and was entitled to immediate pension. After commutstion pension was a tad over £240pm and will increase to just over £620 in September. Just wondering why no increases during that time and why we were told they would be paid in a lump sum at aged 55. Bang goes our plan for a super holiday!!!!

molerat

Navywife1975 wrote: »

Hubby was made redundant in 1993 and was entitled to immediate pension. After commutstion pension was a tad over £240pm and will increase to just over £620 in September. Just wondering why no increases during that time and why we were told they would be paid in a lump sum at aged 55. Bang goes our plan for a super holiday!!!!

The lump sum of 3 times pension was paid on commencement when he left the service. None of the things you are expecting were mentioned in any of the paperwork he would have received at the time. I certainly did not receive any contrary information when I was made redundant in 1994. It is the way the AFPS75 scheme has always been run.

This pension will be fixed until you reach the age of 55. At this point it will be increased to take account of the total rise in the cost of living since your service ended and will continue to increase in line with annual movements in the Retail Price Index. This is known as index-linking and means that your pension keeps its purchasing power over time.

Navywife1975

molerat wrote: »

The lump sum of 3 times pension was paid on commencement when he left the service. None of the things you are expecting were mentioned in any of the paperwork he would have received at the time. I certainly did not receive any contrary information when I was made redundant in 1994. It is the way the AFPS75 scheme has always been run.

Obviously a misunderstanding on reading the paperwork all those years ago. Thanks to all for clarifying!!!!