Todays changes, does it include Forces pensions?

System

I never mentioned the size of my pension. YOU didn't read things correctly. The OP stated their pension was small.

Pension is pension is taxable regardless of size. Whether it falls within personal allowance when other income streams and tax codes are taken into account is a totally separate question.

I earn it and that gives me the right to whinge about any taxes that I pay the same as others do on these boards.

I applaud you for being such a Stoic and suffering in peace. It must give you great satisfaction to know that there are others who do not have the fortitude that you have to suffer in silence.

peterg1965

jem16 wrote: »

No they don't. This is done by the pension provider responsible for paying the pension and would be used for the first pension payment whilst they await a correct tax code from HMRC.

What should actually happen is that the pension provider should use the emergency tax code but some providers wrongly choose to use the BR tax code.

this is very topical for me. I leave the Forces in 7 weeks and need my pension to be taxed at the 40% tax rate at source (D0 is the tax code I think). Having spoken to Sevice Veterans (SPVA) they have said that I can't influence the tax code on my pension until it is in payment and I have to speak to Equinity Paymaster and (I suspect) the relevant tax office. To make matters more complex I am starting a new job 4 weeks before I formally leave the Forces. And will be paid twice at the end of May - nice position but it is going to take a few months to unravel my tax situation I think! I also have to deal with separate tax offices.

On a slight tangent, there is no question that the Armed Forces pension scheme AFPS75, is probably the best final salary scheme out there and I am grateful to be a beneficiary. It is no surprise that is has been closed to new entrants since 2005 and for most of those on it (below the age of 48) and still serving, the benefits are now frozen.

jem16

peterg1965 wrote: »

Having spoken to Sevice Veterans (SPVA) they have said that I can't influence the tax code on my pension until it is in payment

That part is correct. Pension providers should use the emergency tax code unless they have a P45 with the relevant tax code.

and I have to speak to Equinity Paymaster and (I suspect) the relevant tax office.

It's only HMRC you need to speak to after your first payment. They will then send out the correct tax code. You may find that they've allocated a D0 code for future payments even before you phone - it all depends on timing.

I also have to deal with separate tax offices.

That doesn't apply now as you phone one central number.

kidmugsy

peterg1965 wrote: »

On a slight tangent, there is no question that the Armed Forces pension scheme AFPS75, is probably the best final salary scheme out there

What, even better than the MPs' and the judges'?

Andy_L

kidmugsy wrote: »

What, even better than the MPs' and the judges'?

Judges & MPs have a better accrual rate but the AFPS scheme pays out earlier and has lower contribution rates (although the AFPS just changed to a new (worse) version this month whilst MPs/Judges won't change to later this year just to confuse comparisons)

kidmugsy

Andy_L wrote: »

Judges & MPs have a better accrual rate but the AFPS scheme pays out earlier and has lower contribution rates (although the AFPS just changed to a new (worse) version this month whilst MPs/Judges won't change to later this year just to confuse comparisons)

Aha, a knowledgeable chap! Tell me, do the judges still get to be exempt from the Lifetime Allowance? If so that much be worth a packet to such well paid people.

peterg1965

The AFPS (of all variants) is also non contributory whereas the others (Judges and MPs) I would suspect are contributory schemes. That's not to say that the pay of Servicemen is abated by a certain degree to recognise the non contributory nature of the pension - although I am pretty certain that this is not written down anywhere!

It does seem rather incredulous that I could have retired from the Forces at any time since I was 37 and taken an immediate pension!

System

peterg1965 wrote: »

The AFPS (of all variants) is also non contributory whereas the others (Judges and MPs) I would suspect are contributory schemes. That's not to say that the pay of Servicemen is abated by a certain degree to recognise the non contributory nature of the pension - although I am pretty certain that this is not written down anywhere!

It does seem rather incredulous that I could have retired from the Forces at any time since I was 37 and taken an immediate pension!

No it would have been 39.5. Service for pension purposes starts at 17.5 and you need 22 years for an immediate pension.
I joined at 16 3/4 so did 9 months before it counted toward pension

Andy_L

kidmugsy wrote: »

Aha, a knowledgeable chap! Tell me, do the judges still get to be exempt from the Lifetime Allowance? If so that much be worth a packet to such well paid people.

AIUI it was only those who were close to retirement age when the rules were changed that got grandfather rights to the old rules.

Tell me, do servicemen still get to be exempt from the reduction in the lifetime allowance for getting an early pension?

Andy_L

peterg1965 wrote: »

The AFPS (of all variants) is also non contributory whereas the others (Judges and MPs) I would suspect are contributory schemes. That's not to say that the pay of Servicemen is abated by a certain degree to recognise the non contributory nature of the pension - although I am pretty certain that this is not written down anywhere!

It appears in the armed forces pay review board report when they come up with the pay settlement. IIRC they update the number every 5 years