The Forces Pension Society - Protecting Your Interests

#1
I thought I'd just write a few words explaining what the Forces Pension Society is and what we do.

National newspapers, television and radio have reported the Forces Pension Society’s campaign in its fight for fairness for the Armed Forces, serving and retired; in particular for those who will be hardest hit by the Government’s changes to Armed Forces pension schemes.

The Forces Pension Society is a not-for-profit organisation and is the only independent, authoritative source of occupational pension advice. Through our Pension Helpline we deal with hundreds of queries every month; many of them complex, many from widows and those with young families. And increasingly we deal with queries about when to exit (and when not to) and what future pension entitlements may be expected.

Forces Pension Society represents the interests of all ranks in all three Services. On behalf of the whole military community we promote the Unique Nature of Military Service and adherence to the Military Covenant. Every new Member of the Forces Pension Society strengthens our collective voice (now well over 40,000 Members).

In addition to our advisory service we also offer our Members a wide range of discounted goods and services, from holidays to healthcare, currency exchange to home insurance.

Membership for you and your partner is just £30 a year and if you join us online now, we will send you this holiday voucher worth £150 (conditions apply). Just quote promo code NNT2011.

Why not have a browse round our site and then, if you are interested, join us online at The Forces Pension Society and quote the code
 
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wave_dodger

MIA
Book Reviewer
#2
I'm curious, I assume you are aware of the recent changes to Annual Allowance et al and the implications therein for anyone who within the last two years was promoted [esp. SO2 to SO1, 1* upwards, but might exceptionally apply to CPO-WO] and who is promoted from 01 Apr 11 onwards?

Have you managed to find out what the actual impact might/will be and the options that will be open to the individuals/service?

WD
 
#3
I'm curious, I assume you are aware of the recent changes to Annual Allowance et al and the implications therein for anyone who within the last two years was promoted [esp. SO2 to SO1, 1* upwards, but might exceptionally apply to CPO-WO] and who is promoted from 01 Apr 11 onwards?

Have you managed to find out what the actual impact might/will be and the options that will be open to the individuals/service?

WD
We have been working with the MOD on the reduction of AA and are waiting for the Treasury to tell us what methods they approve for pension schemes to recover any tax charge due. Rule of thumb: if the annual increase in the value of your pension is less than £2.6K this will not affect you. The Treasury have accepted that, for AFPS 75 members, the increase in pension (as per the pension codes) is divided over two years (which is what would happen if you left with one year's seniority in the higher rank).
 

wave_dodger

MIA
Book Reviewer
#4
The Treasury have accepted that, for AFPS 75 members, the increase in pension (as per the pension codes) is divided over two years (which is what would happen if you left with one year's seniority in the higher rank).
Yes I understood this too, but noted that HMT have declared that in making calculations upon this presumption you cannot use your two previous years AA at the previous 250k level you use the new 50k level, which does seem to suggest (to my simple mind) that SO2 to SO1 will be left with a tax bill of around £9k, and heaven help anyone more senior who gets promoted.

Having weasled my way into a larger conversation I left with a little nugget. If you are an SO2 and get selected for SO1, you will be liable either for £8k tax (on AFPS 05) or £5k (AFPS 75). These figures seemed to be generally accepted as realistic. Not good news.

WD
 
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#5
Yes I understood this too, but noted that HMT have declared that in making calculations upon this presumption you cannot use your two previous years AA at the previous 250k level you use the new 50k level, which does seem to suggest (to my simple mind) that SO2 to SO1 will be left with a tax bill of around £9k, and heaven help anyone more senior who gets promoted.

Having weasled my way into a larger conversation I left with a little nugget. If you are an SO2 and get selected for SO1, you will be liable either for £8k tax (on AFPS 05) or £5k (AFPS 75). These figures seemed to be generally accepted as realistic. Not good news.

WD
You are right about the previous two years AA counting at £50K. If you are an FPS member the Help Desk will work out what that would mean for you on promotion to SO1.
 

vauxhall

Lantern Swinger
#10
How about explaining what you don't do?
War Pensions and Compensation casework - that is the Royal British Legion. Financial Advice - but we know IFAs to point you towards. Legal Advice - but again we know firms who specialise in arguing for Service personnel on divorce and terms and conditions issues, so we can point you in the right direction, should you so wish.
 
#11
Hiya mate,The links in the OP aren't working
Thanks for the spot - all now fixed!

For what it's worth I'm a big fan of the FPS. They were awesome in helping me understand when I could leave with the best possible pension and also did a cracking brief on my CTW. Great to know that there are a group of people fighting for us as well.
 
#12
Are you doing anything about AFPS 75, NI abatement being illegally index linked to CPI from date of discharge until age of retirement. When Naval and Marine Pensions regulations clearly state in Rule D. 21 and D. 22 the amount and the date it should be applied. I believe this indexation was introduced in 2008. Under whose authority?
This probably effects thousands of your members
 

vauxhall

Lantern Swinger
#15
I am sorry to disappoint you but the FPS is not campaigning on this issue.

The law required pension schemes to introduce preserved pensions by April1975 - and AFPS 75 did this for those who left before the immediate pension. Initially the requirement was that, to qualify for a preserved pension, AFPS 75 members had to have at least five years service and be at least 26 yrs of age. Over the years, this was amended and all the AFPSs now have a 2 yr vesting period.

The position has been challenged in the past without success. AFPS 75 changed its rules to meet the requirements of the law within the required timescale.
 
#16

vauxhall

Lantern Swinger
#18
Quote from the original post......... " the Forces Pension Society’s campaign in its fight for fairness for the Armed Forces, serving and retired; in particular for those who will be hardest hit by the Government’s changes to Armed Forces pension schemes."
Maybe this claim should be amended or withdrawn? The sector "hardest hit by the Government’s changes to Armed Forces pension schemes" are the post '60 pre '75 veterans and you are "not campaigning on this issue"? Shameful.

Two thins to add:

1. This was challenged in the European Court of Human Rights ad deemed admissible.

2. This issue is does not just affect the Armed Forces - they are not being uniquely disadvantaged. All government employees are in the same boat.
 
#20
The sales pitch is for those hardest hit by Forces pension changes. You don't qualify for a Forces pension under the rules you signed up to so don't have a case!
 

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