Don't get caught out ..

Discussion in 'Finance & Pensions' started by vauxhall, Jan 9, 2018.

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  1. Ninja_Stoker

    Ninja_Stoker War Hero Moderator

    It begs the obvious question: Why don't Equinity or Veterans UK automatically notify those paid EDP, three months before the chop date?
     
  2. It would be nice if they did. My guess is that it is a question of resources.

    Just for clarification, the veteran in the case above was an AFPS 05 member - hence the EDP income continued until age 65. For AFPS 15 linked EDPs, EDP income continues until the member's state pension age.
     
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  3. I am assuming as I left in 98 with a full pension, this does not affect me?
     
  4. No. Relax.

    When you left you left with either a pension or a preserved pension. EDPs were introduced because the 2004 Finance Act said that pension schemes could only pay a pension before age 55 in the event of ill health. AFPS 75 was safe as it was closed to new entrants before the provisions of the Act commenced (6 April 2006). EDP when introduced was a way to pull people through to at least age 40 with at least 18 yrs, letting them leave with a lump sum and an income stream.
     
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  5. Feww! Glad I turned down that 2OE in 2000 then!
     
  6. good call, who would have ever know you made a right call, it took you 18years to find out? :D:rolleyes:
     
  7. I think I had an inkling earlier but its nice to have confirmation now and again!
     
  8. I left in 98 telling them to ram 2OE for my last 5
     
  9. I did 2OE10, left in 2007 and resisted all of the growns up who kept pressurising me to change from AFPS75. They kept trying to convince me that I'd be better off but the spidey senses had kicked in full bore, especially when I got blank looks when I said they'll only change the pension scheme to save money, so how am I better off? The waffle that usually followed was a joy to behold, I assume that's a course they do at Dartmouth :)
     
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  10. I think it's called the BS or don't have a clue course.
     
  11. I think the new system worked well for a few, there are a couple of ex RAF WO's here who dipped in a stinker :(
     
  12. It all depended on length of service and how long you had left, for me it was a no brainer to stay on '75. A bloke I know who was the same rate and branch, same length of service fell for it. I still see him and he still keeps trying to convince me he's better off. For a lucky few changing over worked, but they were in a minority.

    I often wonder, with those that changed schemes, just how much has the MoD saved?
     
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  13. Its funny that they all of a sudden became fully qualified financial advisors able to offer such sage advice. As you say, they would hardly be likely to introduce a new scheme that would actually cost more money and be beneficial to everyone. Someone, somewhere would inevitably lose out.
     
  14. I think the ones that dipped in have to make at lease 65 to reap the full benefit of jumping across. One WO I knew was Mr RAF and would have stayed in forever, but the financial package was far to good and he was gone as soon as he could. As mentioned it only benefited a small minority and it wasn't hard for people to work out if they were in the zone.

    I left as a PO and its not a massive pension but it pays the mortgage every month, and I got it at 40.
     
  15. I switched to 05 from 75 and went at 55. Much better off.
    Believe 75-05 change was financially neutral. Reduced immediate pensions etc paid for increased widow's benefits etc.
     
  16. Ninja_Stoker

    Ninja_Stoker War Hero Moderator

    Each pension scheme differs but in my experience,whenever a new armed forces pension is introduced, the only person that makes gains is the government.

    Changes aren't made to pay more.
     
  17. I remember in the 70s paying in extra money to enable my wife to have a Full half of my pension when I die. Without these extra contributions she would have only been entitled to 50% of any pension due after a certain date.
    Was it worth it?
    We will only find out if I pop my clogs first
     
  18. Then you will never know:rolleyes:
     

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