Service attributable pension/War disablement pension

Hello all,

I was medically discharged in 2010 after 19yrs mans time. I received a service attributable pension and a war pension (30% rate) These are tax free as my condition was found to be attributable to service.

What I was never told was how long I would receive these pensions. Do they stop when I receive old age pension or are they for life.

I tried asking SPVA but got nowhere with the bufoon.

Anyone know?

 

Your AFPS 75 occupational pension is entirely separate to the Old Age Pension so it doesn't stop when you reach State pension age. Benefits from the War Pension Scheme counts as a State benefits and I will need to check with FPS HQ as to whether there is a reduction when your State pension kicks in. I know that, for dependants' attributable benefits, there is an adjustment to the State pension but I am not certain about the veteran him or herself.

 

Just an aside for age allowance 65 years old next April it is £10500, if your occ/pen and state pension exceeds that amount your state pension will be payed as gross your occ/pen is then taxable

 

Hello toofreetoo,

In addition to the advice given above, the Service Personnel and Veterans Agency will also be able to offer guidance.

Kind regards,
The NFF Team

 

I promised to find out what I could about the War Pension element of you pension income. To the best of our knowledge the payment of the old age pension does not have an impact on your War Pension. What you do need to know about, though, is the National Insurance modification and the Guaranteed Minimum Pension impact on your AFPS pension. There is a leaflet about this on our website (Forces Pension Society - Fighting for the forces and their families) - if you have any trouble identifying it, send me a PM with your email address on it and I will send you a copy.

 

I am in receipt of both a War Pension and OAP ,I was in receipt of Unemployability Supplement before my OAP came into play.Unemployability Supplement and OAP are overlapping benefits so was advised to continue with UNEMP as it is tax free,my OAP was then reduced accordingly to take this into account.
Clear as mud I suppose!!But if I had opted to take my full OAP it would have been taxable!!My tax code is used up by my Pussers pension
MH

 

Age-related tax allowances - Tax and allowances for older people - Tax - Which? Money

 

toofreetoo, I can answer your questions. Your War Pension is for life, or for as long as your medical condition continues. It is tax free totally. However your AFPS 75 will be reduced when you reach state pension age. I have been informed this is to prevent members recovering their National Insurance and Graduated Pension Contributions, in state pension and the Armed Forces Pension. I served in the Royal Navy for 10 years recognised service and the reduction is £266 per year, therefore the reduction amounts £26.60 per year of service after 18 years old. I am waiting on word from HMRC regarding this reduction, as I believe it should be challenged, and I intend to present it to the pensions ombudsman.
You may be taxed on your AFPS 75, if you exceed the pension threshhold (not your war pension.

Hope this helps