Navy Net - Royal Navy Community

Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Preserved Pension Reductions

tufty

Lantern Swinger
I left the pusser in 1980 with 12 years pensionable service and was awarded a preserved pension.

I recently turned 60, the lump sum was paid to me and I got a letter from the AFPS at Kentigern House.

At the bottom it says:

"Any necessary reduction, earned in respect of service given up to 31 March 1980, in consequence of retirement pension payable to you under the National Insurance Pension Schemes will be made at age 65 the age at which state retirement pensions normally become payable"

I rang them up to sak what that meant and was told I could lose quite a lot of it when I'm 65 but he was a bit vague about how much. :evil:


Anyone know any more about this?
 

slim

War Hero
I have just had a similar letter from the pension fund of my last company.
I have been told that the pension I have been receiving from the time I was made redundant will be reduced when I reach the age of 65. It will be reduced by the ammount of a suppement included. Seems this supplement was a requirement by law until state pension was received. This guaranteed a minimum ammount of pension until retirement age.
Once state pension comes into play this requirement in ended.
 

tufty

Lantern Swinger
Well got a reply from them and one paragraph says:

"When you reach the age of 65 and your state pension commences which will reduce your Armed Forces pension due to National Insurance modifications. This was due to service persons who served between 03/04/61 and 01/04/78, the MOD paid contributions on their behalf."

What annoys me is that I didn't know about this, and can't find any reference to it on the MOD Pensions website.

Should have gone in to banking ....
 

soleil

War Hero
tufty said:
Well got a reply from them and one paragraph says:

"When you reach the age of 65 and your state pension commences which will reduce your Armed Forces pension due to National Insurance modifications. This was due to service persons who served between 03/04/61 and 01/04/78, the MOD paid contributions on their behalf."

What annoys me is that I didn't know about this, and can't find any reference to it on the MOD Pensions website.

Should have gone in to banking ....

Tufty

Is this the Graduated Pension Scheme Abatement referred to on Page 5 of this document?:

http://webarchive.nationalarchives....D0-AAC9-4AFA-B02C-98B1960DFAB8/0/7AFPS_05.pdf
 

tufty

Lantern Swinger
It's close! I think they're talking about AFPS 05 there whereas I'm in AFPS 75 since I joined in 1967 and was still serving in 1975 when it came in - not that I noticed at the time though!

Still you've given me another search term I can try there then - cheers
 

vauxhall

Lantern Swinger
It is strongly recommended you ring the Forces Pension Society on 0207 820 9988 or email [email protected] and speak to the Pensions Secretary who is the National expert in Armed Forces Pensions. It is worth noting that the FPS is a membership Society and to get full personal service you will be expected to join - but it is only £30 per year. See also www.forpen.co.uk
 

rickeee

Badgeman
Members who are in receipt of AFP (AFPS75) should note that the forces were opted out of Nat Ins contributions for a number of years. Therefore on reaching 65 years your old age pension is reduced to take account of this. It should also be noted that this element does not figure for an increase this year (same as service pension) the increase heraded by the incoming CONDEM group stated all old age pensions would be increased by 2.5% -only part of mine was subject to the increase. BEWARE those bearing false gifts.
 

Rumrat

War Hero
rickeee said:
Members who are in receipt of AFP (AFPS75) should note that the forces were opted out of Nat Ins contributions for a number of years. Therefore on reaching 65 years your old age pension is reduced to take account of this. It should also be noted that this element does not figure for an increase this year (same as service pension) the increase heraded by the incoming CONDEM group stated all old age pensions would be increased by 2.5% -only part of mine was subject to the increase. BEWARE those bearing false gifts.

Not pension related comment, but you have just answered a question I tried to get an answer to on google.
I knew that during my time we never paid NI and when on leave had to pay for services that were free to civvies, get a receipt and then claim it back on board.
I could find no mention of the system on google.
It was relevant as when I left the mob the Job Center tried to make me buy shortfall NI stamps when I went to register there on discharge.
 
Think you'll find that if you did the full 22 years the non payment of insurance contribution evened its self out with the RN pension .

RN Pension being classed as a seperate scheme outwith the OAP my
pension statement payments read
State Pension-----------
Pre 97 additional pension -------
less contracted out deduction ----
Post 97 additional state pension ------
Graduated Retirement benefit --------

RN pension is paid seperately and usually gets used for any tax due to be paid . The tax man cannot take any tax from OAP related payments .

G
 

morsehorse

Lantern Swinger
Greenie said:
Think you'll find that if you did the full 22 years the non payment of insurance contribution evened its self out with the RN pension

RN pension is paid seperately and usually gets used for any tax due to be paid . The tax man cannot take any tax from OAP related payments .

G
Greenie I do not think that is quite correct they just adjust your tax code i.e. lower it so you have less tax relief against you pension.
That is what they did to me when I got my OAP
Jacqueline
xx
 

sulzer

Lantern Swinger
Greenie: I served for 20 years and the NI payments started at 16 years of age (1/3 pw) and continued until I had completed 44 yeays employment. The DWP office said anyfurther contributions would not coun. I took the hint and retired TM
 
My Service time --I did 27 years came out 1985 Joined as a junior
so basicallydid nearer 30 years RN time
I had a insurance number at age 13

Worked 1985 till 2004 and like Sulzer was told I need not sign on 'cos my Insurance contributions were above the 44 yr period

At age 65 the non taxable allowance is £9,490 so you would be allowed to
recieve approx £200 pw and pay no tax . However My state paid OAP benefits add up to more than £9,490 pa . The amount over £9490 becomes liable for tax
The tax due is passed to the RN Pension paying authority and added to the
amount that is due to be deducted as a tax payment from my RN pension
thus giving me a final tax code

ie tax is basically 0ne fifth [20%] of all income over and above your personal tax free allowance
If your income exceeds £24,000pa then you begin to pay more tax . So
anyone thinking of getting a job or staying in work after 65 beware the tax rules

G.

G.
 

sandyspud

Midshipman
I served in the RN for 11years and am now 66 years old. At 65 I was told there would be a reduction in my AFPS 75 of £266.
I am at present in dispute over this and have followed the PSVA complaint processes stages 1 & 2. I am waiting on a reply from HMRC on the legality of this process. I have initiated an epetition to stop this http://epetition.direct.gov.uk/petition/54913 Please sign. Any further info email [email protected]
 

fishhead

War Hero
I had a reduction of my Service pension at 65 but I was told I had received more than the basic State pension as a result.
 

pie.thatcher

Lantern Swinger
I left the mob in 89 after 27 years then joined Royal Mail, took their pension at 60, then on reaching 65 it was reduced by almost 40%. This appears to be the norm in all final salary pension schemes. Of course at 65 the state pension kicks in, but because both pusser and RM were contracted out of SERPS my state pension was reduced by about £45 a week. Such is life! Mind you with 2 indexed linked pensions I am much better off than those with a full state pension. I agree with Greenie, I still work part time at 66 but if I earn more than £25400 (ish) this year you start paying almost double the tax, so I do 1 1/2 days a week but take a month off over crimbo and a month in the summer. Works well all round.
 
Last edited:
Thread starter Similar threads Forum Replies Date
K AFPS 75 - preserved pension rates Finance & Pensions 2
vauxhall Preserved Pension Benefits Guide Finance & Pensions 0
B 5 years preserved pension + rnr Finance & Pensions 3
G re preserved pension Finance & Pensions 10
babygravy Preserved Pension question Finance & Pensions 12
3yearstilltx With preserved pension now catching up with CPI index linking at 60 rather than 55... Finance & Pensions 17
JonnyAlpha Preserved Pension Eligibility Finance & Pensions 7
RINGO Preserved Pension Current Affairs 7
vauxhall Changes to the Forces Pension Society Roadshow Programme Finance & Pensions 0
MoD_RSS Pension costs review for Northern Ireland Water MoD News 0
MoD_RSS Simple statements boost for pension planning MoD News 0
MoD_RSS Landmark pension proposals will protect savers from scams and help tackle climate change MoD News 0
MoD_RSS Pension boost protected by new bill MoD News 0
MoD_RSS Government launches cross-sector Working Group to help address multiple small pension pots MoD News 0
MoD_RSS Government to help pension schemes seize long-term opportunities MoD News 0
MoD_RSS Taking action on climate risk: Improving governance and reporting by occupational pension schemes MoD News 0
MoD_RSS Britain’s pension schemes lead on climate risk MoD News 0
MoD_RSS New Chair of Firefighters’ Pension Scheme Advisory Board of England appointed MoD News 0
MoD_RSS Landmark Pension Schemes Bill proceeds to House of Commons MoD News 0
MoD_RSS Canada Pension Plan MoD News 0
MoD_RSS GAD's support on pension entitlements for fee-paid judges MoD News 0
MoD_RSS Pension Credit claimants now able to apply online MoD News 0
MoD_RSS GAD project helps 1,000+ pension scheme members MoD News 0
MoD_RSS Pension investment advisor banned MoD News 0
A OR2 full career pension rates 1998 Finance & Pensions 8
B Commute my pension or not? Finance & Pensions 4
MoD_RSS GAD pension specialists share expertise at industry conference MoD News 0
theoldti FTRS effect of pay rise on pension abatement Finance & Pensions 4
MoD_RSS GAD’s review of the Local Government Pension Scheme (Scotland) MoD News 0
MoD_RSS Statement from the Secretary of State on the Clinician Pension Tax Scheme MoD News 0
vauxhall How good is your pension? Finance & Pensions 0
MoD_RSS Russell Agius reappointed to the Judicial Pension Board MoD News 0
E Added pension Finance & Pensions 5
MoD_RSS Changes to the currency of UK State Pension and Industrial Injuries Disablement Benefit paid into Yemeni bank accounts MoD News 0
J Collection Pension From Overseas Finance & Pensions 2
vauxhall Pension Roadshow Schedule 7-11 October Finance & Pensions 0
B Pension for reservist 1 year operational service Finance & Pensions 1
MoD_RSS Multi-million-pound pension liberation bosses banned for 34 years MoD News 0
MoD_RSS Pension entitlements for fee-paid judges MoD News 0
vauxhall Keeping an eye on your pension! Finance & Pensions 0
MoD_RSS Non-Executive Chair to the Civil Service Pension Board: 5 September 2019 MoD News 0
MoD_RSS Pension company wound-up after mismanaging £14m of funds MoD News 0
MoD_RSS Uprating guarantee for UK State Pension recipients living in EU MoD News 0
vauxhall Telegraph Reports on Pension Tax Trap Finance & Pensions 0
vauxhall Pension Tax Update Finance & Pensions 0
vauxhall Forces Pension Society Appoints New Chief of Staff Finance & Pensions 0
vauxhall BBC reports that 'woman wins rights to her late partner's military pension Finance & Pensions 0
Sumo 'Unlawful' pension schemes to cost government £4bn a year Finance & Pensions 3
MoD_RSS Pension scheme negligence lands insurance boss seven-year ban MoD News 0
Archstoker Forces pension and age pension Finance & Pensions 6
Similar threads


















































Latest Threads

Top