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AFPS75 Explained

gsimpson

Midshipman
Hello to the forum

I joined the Royal Navy in 1987, aged 19 and served for 4 years and 86 days!
Bank in 2015 I requested information on what if any pension would be available to me when I hit pension age. I received a copy of the AFPS 75 Pension Benefit Forecast from the Glasgow office, it has a figure for preserved pension payable at the age of 60 (£####. ##) and another figure for Preserved Terminal Grant payable at the age of 60 (£####. ##), and there is another figure written against Value of these preserved benefits against the lifetime allowance (LTA) (£#####. ##). What I'd like to understand is after the first two sums are paid at the age of 60 do I get any other yearly / monthly payments? And what is the last figure LTA? Also in the top section it has a figure Current Life Allowance (LTA) (£#, ###, ###. ##) what does this mean?

With thanks thanks in advance.

-Gs
 

vauxhall

Lantern Swinger
The preserved pension is the current value of what will be your annual income from AFPS 75 at age 60.

The Terminal Grant is a one off lump sum, paid when you claim the pension. It is worth three times the annual income and is, under current tax rules, tax free.

The LTA was introduced in 2006 and imposed a limit to the amount you could save in a tax privileged pension scheme before being heavily taxed. The Current LTA is the current limit. The figure is what, of that limit, you have used by earning the pension and that appears in percentage terms next to it.
 

gsimpson

Midshipman
Hi Vauxhall

Thank you very much, makes perfect sense now, I appreciate you taking the time out to respond to my query.

-Gs
 

gsimpson

Midshipman
Sorry just one other thing, I hope this doesn't sound silly, so is the "Value of these preserved benefits against the lifetime allowance (LTA)" like the current value of the pension which would be paid out on my death if I died before I reached pension age? Or like the transferable amount if I wished to transfer it into another pension pot I have?
Thanks again

-Gs
 

vauxhall

Lantern Swinger
I am afraid not. The calculation for the value against LTA for preserved pensions is 20x the pension + the lump sum.

The value for transfer is calculated in a different way and Vets UK has a section who work these things out.

You are an AFPS 75 member so, If you were to die before your pension were paid, the lump sum (so 3 x pension) would be paid to your spouse/civil partner or children (if none, to your estate) and the scheme would ask about persons who may be eligible for a dependants' pension under the scheme. AFPS 75 booklet attached.
 

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  • 37284_MMP114_ Family Benefits.pdf
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