Armed forces pension scheme

sartois

Hi,

I have what feels like a really stupid question...I have recently received a statement from the MOD regarding my deferred pension (for serving more than 12 years) and just need to understand what it actually means to me when I retire (not for a while as I am 39 at the moment). My current pension position is as follows from the AFPS scheme:

1. Preserved Pension payable at 60: £5894.60
2. Preserved Terminal Grant payable at 60: £17,683.80
3. Preserved Pension payable at 65: £519.26
4. Preserved Terminal Grant payable at 65: £1557.78

Are these all just paid as lump sums when I reach that age or is the Preserved Pension paid annually/monthly/weekly (as in I get £5894 per year rather than just £5894 as a lump sum)?

If the amount is paid annually does it increase by the amount listed at point 3 above when I am 65 or does it drop to that amount due to being receipt of state pension?

Thanks in advance... just trying to work out what I am likely to get when I retire and how much I should be investing now for the future.

kidmugsy

God, what chumps they are. There is no excuse for such incompetent writing causing worry to people.

I guess that what they mean is:

1. Preserved Pension payable at 60: £5894.60 p.a.
2. Preserved Terminal Grant payable at 60: £17,683.80
3. Preserved Pension payable at 65: £519.26 p.a.
4. Preserved Terminal Grant payable at 65: £1557.78

If I'd written it I'd have added something to the effect that (1) and (3) will be taxable income, and that (2) and (4) are ... well, whatever they are. Tax-free lump sums, perhaps?

And if my guesses are wrong? It further demonstrates the folly of their writing so badly that their meaning is inscrutable.

xylophone

You are in AFPS 75?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252573/afps75_mmp106_your_pension_scheme_explained.pdf

Pages 11 and 13 seem relevant? So ( but check with the administrator)

1. Preserved Pension payable at 60: £5894.60 (per annum)
2. Preserved Terminal Grant payable at 60: £17,683.80 (lump sum normally tax free)
3. Preserved Pension payable at 65: £519.26 (per annum - added to whatever you are receiving at 65 and presumably increasing with inflation in a similar way)
4. Preserved Terminal Grant payable at 65: £1557.78 ( normally tax free lump sum).

sartois

Thanks kidmugsy and xylophone for the responses guys... much appreciated. Yes I am in AFPS75... That's what I was hoping it would be... although I think I will give them a call to make absolutely 100% sure and maybe drop the hint that adding something like 'annually', 'per annum' or something along those lines might be helpful, rather than listing figures without meaning...

Thanks again.

Cardew

sartois wrote: »

as I am 39 at the moment).



If the amount is paid annually does it increase by the amount listed at point 3 above when I am 65 or does it drop to that amount due to being receipt of state pension?

At 39 won't you be 67 before being in receipt of a state pension?