Armed Forces Pension Schemes For Squaddies
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- เผยแพร่เมื่อ 31 ก.ค. 2024
- Armed Forces Pension Schemes For Squaddies
In this video, I explain the armed forces pension schemes (AFPS). I go over the AFPS 75, the AFPS 05 and the AFPS 15. I also talk about the McCloud case and it’s remedy and who it affects as well as, how each pension scheme is calculated and when you can claim it.
This video is absolutely packed with information about the Armed Forces Pension Schemes but I can’t cover every aspect of them. Below are the links to the sources I used for this video and they will have more information about more specific factors with regards to the pension schemes.
Need Professional Advice:
Forces Pension Society - forcespensionsociety.org/
Veterans’ Gateway - www.veteransgateway.org.uk/
Veterans UK - www.gov.uk/government/organis...
Gov Website - www.gov.uk/guidance/pensions-...
Timestamps:
0:00 Intro
0:12 Disclaimer
0:40 What is a pension?
0:50 State pension and workplace pension
1:23 How do workplace pensions work?
1:53 How to know which armed forces pension scheme you are apart of?
2:49 Armed forces pension scheme transitional protection
3:06 McCloud pension case remedy
4:23 How is the AFPS 15 calculated? Career Average Revalued Earnings (CARE) explained
5:12 How is the AFPS 05 calculated?
5:27 How is the AFPS 75 calculated?
5:48 Is my time on the other armed forces pension schemes protected?
6:10 When can you claim the armed forces pension scheme 15?
6:38 What is a deferred pension?
6:57 Claiming the armed forces pension scheme 15 at the age of 55
7:07 What is the EDP or Early Departure Payment Scheme?
7:35 EDP eligibility criteria for the armed forces pension scheme 15
8:25 What will you receive with early departure payment on the AFPS 15?
8:40 What is inverse commutation?
9:02 AFPS 15 Resettlement Grant
10:00 What is commutation?
10:42 When can you claim the armed forces pension scheme 05?
11:25 EDP eligibility criteria for the armed forces pension scheme 05
12:31 When can you claim the armed forces pension scheme 75?
13:31 Deferred pension on the AFPS 75
14:15 AFPS 75 Resettlement Grant
14:39 Can the armed forces pay into their pension?
14:56 Added Pension AFPS 15
15:58 Added Years AFPS 05 and AFPS75
16:24 Other factors to do with the AFPS
16:55 Why the AFPS 15 is a good pension scheme
18:33 Earning extra money for retirement
19:12 Final Thoughts
20:15 Outro
Links:
Pension Calculator For Squaddies:
• Armed Forces Pension C...
Using A Military Career To Achieve Financial Freedom:
• How to Retire Comforta...
Armed Forces Pension Calculator:
mod-pc.co.uk/
Added Pension Quote Request Form:
assets.publishing.service.gov...
McCloud Remedy:
file:///Users/cam/Downloads/McCloud%20Remedy%20Final_Leaflet.pdf
Sources:
AFPS 75
assets.publishing.service.gov...
AFPS 05:
assets.publishing.service.gov...
assets.publishing.service.gov...
AFPS 15:
assets.publishing.service.gov...
assets.publishing.service.gov...
McCloud:
assets.publishing.service.gov...
Resettlement Grant:
forcespensionsociety.org/2021...
Pension Survey:
www.finder.com/uk/pension-sta...
Other Webpages:
forcespensionsociety.org/pens...
www.ii.co.uk/analysis-comment...
support.veteransgateway.org.u...
file:///Users/cam/Downloads/Transition%20Information%20Sheet%2011%20-%20Pensions.pdf
forcespensionsociety.org/2019...
DISCLAIMER:
I am not a professional financial advisor and this video is not financial advice. Please do your own research before making any decisions with your money and seek professional financial advice if need be.
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Timestamps:
0:00 Intro
0:12 Disclaimer
0:40 What is a pension?
0:50 State pension and workplace pension
1:23 How do workplace pensions work?
1:53 How to know which armed forces pension scheme you are apart of?
2:49 Armed forces pension scheme transitional protection
3:06 McCloud pension case remedy
4:23 How is the AFPS 15 calculated? Career Average Revalued Earnings (CARE) explained
5:12 How is the AFPS 05 calculated?
5:27 How is the AFPS 75 calculated?
5:48 Is my time on the other armed forces pension schemes protected?
6:10 When can you claim the armed forces pension scheme 15?
6:38 What is a deferred pension?
6:57 Claiming the armed forces pension scheme 15 at the age of 55
7:07 What is the EDP or Early Departure Payment Scheme?
7:35 EDP eligibility criteria for the armed forces pension scheme 15
8:25 What will you receive with early departure payment on the AFPS 15?
8:40 What is inverse commutation?
9:02 AFPS 15 Resettlement Grant
10:00 What is commutation?
10:42 When can you claim the armed forces pension scheme 05?
11:25 EDP eligibility criteria for the armed forces pension scheme 05
12:31 When can you claim the armed forces pension scheme 75?
13:31 Deferred pension on the AFPS 75
14:15 AFPS 75 Resettlement Grant
14:39 Can the armed forces pay into their pension?
14:56 Added Pension AFPS 15
15:58 Added Years AFPS 05 and AFPS75
16:24 Other factors to do with the AFPS
16:55 Why the AFPS 15 is a good pension scheme
18:33 Earning extra money for retirement
19:12 Final Thoughts
20:15 Outro
Bro I have interesting question for you. Edp vs age 60 pension. For apps 15 say you join as regular at 18 and qualify for edp at age 40. And you spa is 68. Is the edp you get more than the full pension you get at age 60 all the way to 68.
You’re the savvy squaddie eh?
Basically a random mouthpiece for veterans uk?
You screw seriously poorly veterans over and drive them to suicide
Andy dowds (head of veterans uk previously) literally killed people
Scum
Revenge will be sweet
Mate, genuinely so useful and I cannot thank you enough. I can never seem to get a straight answer about my pension and this has laid it all out for me.👍
No dramas, glad you've found it useful.
Great content! Very informative and easy to follow! Thanks!
Cheers man, glad you found it helpful!
Great video. I’m getting a deferred AFPS 75 pension and was wondering if the McCloud thing affected me at all, seems it doesn’t. Not something that Veterans U.K. managed to explain, so thanks! 👍🏻
Thank you very much for the detailed information.
No problem, you're welcome.
from what iv read my previous pensions 75 and 05 will remain untouched and wont be encompassed onto the 15 pension as I had a break from service for over 5 years.. its a bit of a minefield but thanks again for these uploads.
Nice video. Just for info on AFPS75 your pension is calculated on the highest paid rank held for two years in the last five. This is important because if you have held Special Paid Acting Rank for longer than two years and then not promoted to that higher rank you could leave with the higher pension as long as it was in your last 5 yrs of service.
Thank you for including that extra information. That's really helpful.
Better than any advice or info I’ve had from the “mob”, anything beyond the very basics and they refer me to “independent financial advice”. Really appreciate the work you put in to these.
I can’t establish whether or not my 8 months on tour acting up a rank (and being paid accordingly) will have a positive impact on my pension. I’m on the AFPS05/15 and I’ve had mixed messages on this. It would probably only be a negligible improvement if so, but it’s not detailed on the new pension calculator, so it’s nice to know the results on there are all “at least £X” rather than the definite amounts.
Should add the tour was before we were moved on to the 15 against our will!
I recommend you look at whether its worth joining the pension society, it is less than a costa every month.
Thanks for explaining this well.
No dramas
Very informative thank you so much
You're welcome. Glad it helped.
Great information 👌🏽
Thank you. Glad it helped.
Very informative. Please do one about Divorce and Pension Sharing Orders
That is on my list of videos to create. So it is coming. Might not be for a few months yet though
Great vidoe. Have you done on or about to do one explaining medical discharge pension/payment.
Thanks. I have done one on the Armed Forces Compensation Scheme but nothing specifically about being MD and what happens to pension etc with that. But I will be doing one in the future
Hi I served junior service Oct 84 to feb 86 when I turned 18. I served then on till about Jun 96 just over 10 years, rank Sgt. I'm aware I can claim a pension at age 60 for about 10/22 of a full pension but also was aware I would get a lump sum as well. Is this about right for type of pension I was on AFPS 75. Or did I not serve long enough for a lump sum.
Also I assume any Junior Leader service to the age of 18 even though some of it was at my first adult working unit will not be included.
Any thoughs would be of interest.
Thanks
This is a great channel, just what I needed. I was in the reserves from 2009 to 2016 when I transferred to regular, would my time spent in the reserves be taken into account for my pension? Thanks 👍
Thank you. Glad I could help. I believe it would count towards qualifying service but from my understanding, unless you were FTRS there was no pension for Reserves until the AFPS15. So, your service from April 2015 onwards would count towards your pension.
Good video, don't suppose you know when the update to the pension calculator will be released? I left in January and it was due around then, but not seen it.
Will be interesting to see what my pension will be when it's reverted back to the 75 scheme
No firm date has been released but it has now been delayed to next year due to the complexity of the remedy
Very informative video and I have watched it a number of times. It also did the rounds around the lads. Thank you for clearing it all up.
Quick question. I am aiming for maxing out my EDP, so going down the inverse communication route and paying into my pension. So is £6500 before tax all you can voluntarily contribute? Or is that the max you can contribute annually? £6500 doesn't seem a lot and how would that reflect my EDP.
TIA
Liked and subbed
I have found a number of places that have conflicting information on this but the majority of them say, and this is backed up by the Forces Pension Society, that the £6,500 is over your whole career not annually. If it were annually and people managed to do that per year then their EDP lump sum and monthly income would be very high, probably too high for the Government to pay, so it makes senses it's not annually. Hope that helps.
Also, the £6500 annually isn't a huge amount. It will add a bit but not life changing or anything. I'll be doing a video in the future to see if it is worth it or not
@The Savvy Squaddie legend thanks mate 👍
Hello! Please could you do a reserve/ADC/FTRS pension video? I’m ex regular now reservist but haven’t got a clue about my reservist pension 😕 I’ve never been given a brief on how it works!
Doing a pension video for Reserves is on my list for when I return from my current deployment.
Excellent video. You’ll no doubt be pleased to know that I've given it a ‘thumbs up’ & also subscribed to the channel. I purchased Added Pension this year and intend to do so again next year (both for the full £6,500 amount). One question I do have: When I leave the Army as a regular, if I decide to join the reserves will I still be able to purchase Added Pension as a reservist?
Thanks for the comment and support. Now, I could be wrong but from my understanding the Added Pension is £6,500 over your whole career and not per year. This is why the minimum payment someone could do each month adds up to 6,500 over a whole career. I have seen a number of different sources quote different things so I think there is some confusion behind it. I could be mistaken but I don't think I am from what I have read but please do correct me if you have evidence otherwise. If it indeed does turn out to be true, then I believe you should be able to continue payments into the reserve forces as reservists are also on the AFPS 15 scheme.
@@thesavvysquaddie Thank you for your reply. So I emailed Veterans UK the other day to explain my situation and to ask the same question I asked you 3 days ago. They replied and confirmed that I've paid £6,500 already however, I still have £6,114.70 Added Pension Benefit Cap remaining which can be paid over the remainder of my career. It appears that people may have different individual thresholds depending on age, length of service and which scheme they're on.
@@thesavvysquaddie Hello again. Still loving your videos so please keep up the great work! So, 6 months on since I last commented on this particular video I recently made my second (and final) added pension payment of £6,114.70, and that's my total pension benefit cap 'maxed out'. I'll be applying for a pension forecast later this month and getting it audited by the Armed Forces Pension Society, so it'll be interesting to see how much the extra voluntary payments have affected/influenced my overall pension pot value.
@@noodles632 That's great news. Well done and fair play. Hopefully it pays off, will be interesting to know how much of a difference it has made.
Hi, If I want to purchase added pension to increase my pension pot, will the amount I decide to put in also be matched on top of what is already being put in as part of the 'non-contributary' pension we currently have? Cheers
Sadly there is no matching of any contributions that you make with added pension.
Can you please explain about GPS Gurkha pension scheme & GOTT Gurkha offer to transfer pension how & why Gurkhas were allocated totally different pension schemes than British armed forces AFPs 5 & AFPs 75 if they both were British armed forces why they were treated different pay schemes as mercenary & their far east services pensionable were not reckoned in terms of GOTT Gurkha offer to transfer scheme 2008. what percentage gap between GPS Gurkha pension scheme & AFPs 05 & AFPs 75 ?
Thanks for the comment. The Gurkha Pension Scheme is a topic that I will be covering in the future.
Savvy, what if you are medical discharged and on 75 scheme and receiving a immediate pension after served 15 years. Will payment stop at anytime.
From my understanding, it should not run out.
Very clear... Why didn't we get this brief in the chain so far??😔😔
Thanks, I hope it helped. There are organisations like, The Forces Pension Society, that go around to different units all year to do briefs but they aren't always accessible to everyone or people just don't know about them.
This video, hopefully, bridges that gap and is a one stop shop for all the basic of the pension scheme and it's available all day every day.
I joined as a boy soldier in 1964 and left in 1975 just B4 my 25th birthday. Am I entitled to a pension.
I don't feel I would be the right person to answer this question as I only have limited knowledge on the Armed Forces Pension Scheme 75, 05 and 15 and you fall outside of that bracket. All the information in the video is sourced from the relevant JSPs, and I am not a professional advisor so I am unable to help with your specific situation.
I think contacting DBS Veterans UK would be the best option to get the correct information regarding your specific situation. Here is a link to the Gov website with the contact details that you require at the bottom of the page.
www.gov.uk/guidance/pensions-and-compensation-for-veterans
Sorry I couldn't be of more help.
When should we be offered the option to change pensions? Thanks
Short answer is towards the end of your career.
For the long answer, here is the exact wording from the McCloud Consultation Update found on the Gov website;
"Irrevocable choice made at the earliest point at which it is necessary to determine benefits payable. For the regular armed forces, this could be the immediate pension point or EDP point, or the point at which a pension becomes payable (e.g. retirement or ill-health). Until the choice is exercised, all members would be deemed to have been in their legacy scheme for the remedy period."
Hope that helps.
Good it may be compared to other scheme’s its not as good as previous pensions, couple that will retention bonus’s being scrapped. People will Always look to what used to be and compare it to now and its not enough to keep people in hence the unsustainable outflow we are now experiencing in manpower.
People would rather pay into a subpar pension than be in the mob currently so the offer simply isn’t cutting it
I joined up in sept 89 to Feb 99. Did reserves until Dec 08. Rejoined as MPGS Jan 09 until the present.
When I get my pension letter every birthday, it does not mention 75 pension on the statement only 05 and 15. Has my 75 automatically been put on 05? As I never requested it if it has
I don't feel I would be the right person to answer this question as I only have limited knowledge on the Armed Forces Pensions, all of which is in the video and sourced from the JSPs, and I am not a professional advisor so I am unable to help with your specific situation.
I think contacting DBS Veterans UK would be the best option to get the correct information regarding your specific situation. Here is a link to the Gov website with the contact details that you require at the bottom of the page.
www.gov.uk/guidance/pensions-and-compensation-for-veterans
Sorry I couldn't be of more help.
I always wondered what Sid the sloth was up to in between films
Gotta keep myself busy 😂😂
I did 13yrs service from 1984 till 1999 and gained the rank of cpl, when can I claim, I was told to claim when I am 59 6months
That's correct. Your AFPS75 pension is a deferred one which must be claimed for 6 months prior to the pension becoming payable. And as you left the forces before 06/04/2006, pension benefit age is 60. Had you left after that, then the pension benefit age is 65 and you'll have to wait longer. So yep, claim your AFPS75 pension around the time you reach 59 years old and 6 months.
i will have done over 30 years when i leave, is the EDP part of the pension paid every year or is it a one off?
I've created a video dedicated just to EDP. That should be able to answer your question and provide more info
Hi, I'm trying to find out the answer to:
I have a 75 pension in payment. I did 25 years.
I'm back in the army and I'll do 18 years.
If I die, firstly how much does my wife get and secondly how does she get it.
Thank you
Hey, the EDP annual payment of £11k until you reach state pension age. Does this payment increase with CPI each year or stay the same ?
Depends on which scheme.
EDP on the AFPS05 does not increase with the CPI but from age 55 it changes to 75% of your deferred pension instead.
EDP on the AFPS15, it does increase in-line with the CPI but only from age 55 onwards.
@@thesavvysquaddie Ok thanks for reply. Good work with these videos 👌🏻
Can I defer claiming my AFPS 75 pension at 60 for a larger pension say aged 65? I’m just about to turn 50 & already borederline super tax & planning to retire at 65. Is it a case of claim it at 60 or lose it! 🤷♂️
Thanks for the comment. It's not a case of claim it or lose it. You can claim it any time after you become eligible. However, I am not sure that delaying the payment of the AFPS 75 will lead to a higher payment like it would with the state pension. For a solid answer to that, it is probably best to email Veterans UK and they'll be able to give you a definitive answer to that.
@@thesavvysquaddie Thank you for answering 👍
So, just a question I'm curious about - in many of these videos, you give consistent examples of reaching W01 at 22 years in the British Armed Services. Is this the amount of time in the military that you must reach at a minimum in order to receive the pension benefit? In the US Armed Services, you just have to reach 20 years in service no matter what your exiting age is to receive that benefit. It sounds like you have to be 40 on the UK. Is this true or am I mistaken?
Thanks for your comment. There is some truth to it. However, a bit more nuanced. At the moment there are potentially 3 different pension schemes that certain people will be on. This is in the minority as the majority will solely be on the Armed Forces Pension Scheme 15 (AFPS15).
I usually use a 22 year career and reaching the rank of WO1 as that would be the aspiration for most non-commissioned officers to reach by the time they leave. I say 22 years because in the Army that is the length, in most cases, of a full career. You can extend for a bit longer and if you are very specialised stay on for even longer if you would like.
The AFPS75, introduced in 1975, is the pension scheme that most senior people still serving have the most time on. Everyone serving now is on the AFPS15 but that another story for a different time. Confusing.
A soldier on AFPS75 would only get an immediate pension upon leaving the service if they served 22 years as an other rank or 16 years as an officer. Another reason why I use 22 years. However, this scheme is no longer open to new entrants and has been replaced.
We are now on the AFPS15. This takes your average earnings over your whole career to calculate your annual pension. It is not as financially generous as the AFPS75. And if you serve a full 22 years, the AFPS15 does not grant you an immediate pension. The pension becomes payable at state pension age which is currently 68 years old in the UK.
But there is still some financial compensation in that period of leaving the Armed Forces to hitting state pension age and this is called the Early Departure Payment (EDP). This is separate to the pension but the amounts are calculated using the annual pension amount.
It is there as a retention too due to the eligibility criteria that must be met in order to receive the EDP, which consists of a tax-free lump sum at exit and then a monthly payment up until state pension age.
The criteria to hit are 20 years of service AND be 40 or over when you leave. Only meet one of these then you are not eligible. The EDP monthly payment is not as high as the pension payment will be but it is better than nothing and certainly nothing to be sniffed at.
Our whole public sector pension schemes were reformed and whilst they all took quite a hit and are not as financially attractive as they once were, the Armed Forces one is still one of the best workplace pension schemes in the UK.
Longwinded, but hopefully that answered your question.
That was very informative. I was just curious about the stipulations thar came with serving in the UK with their Armed Services retirement schemes. I'm in one of the branches of the U.S. military. We have a cliff vesting pension that you can only receive after 20 years of service. Ours recently had a reform, too. However, there was no mingling of the two systems. You were either grandfathered in to the old one, enrolled into the new one, or had the choice to change over to the new one depending on how many years you had service up until that point.
AFPS75 - served 2yrs as a boy & 4yrs 9 months from 18 (RN). Left in 84.
At 60 received a lump sum & small annual pension.
Any idea why as I didn't get the 5yrs recognisable service in
lol - I haven't transitioned, not my ipad
If you leave at 18/40 and get lump sum plus EDP, then rejoin after 90 days, will you have to pay the money back?
If you re-join Regular service then, yes you will have to repay back most of the lump sum. However, when you come to leave again, the amount will be recalculated to include that new service and you'll receive another lump sum. I have a whole video on EDP which can help give you more info including rejoining info.
Please can you do a video on, paying into your pension. I've got 9 years left and wont to maximise my pension.
You're in luck. I released one on that topic a month or two ago. Here is the link, th-cam.com/video/dvVD_XjnYz8/w-d-xo.htmlsi=64a2gCAeqH7dDGdm
What about all who served 1964 to 1970
Many put their lives on the line in Malaysia/ Borneo etc ? I wouldn't recommend 9 months in the jungle to anyone
If I put my notice in on my 11th year in the navy and leave on the day of the 12th year, do I get the 11k?
In theory yes it should, but if it was me, I might wait a week or two just to make sure that I am across that threshold before putting in my notice.
Hi great info i served 5 years left 1984 and got a pension , so was trying to help a mate he served 4 years and left the army in 1984, we called the help line today and he was told he has no pension as he only served 4 years and had to do at least 5 years to get a pension. Please can you confirm if this is true if you would be so kind. Many Thanks.
Thanks for the comment.
I'm afraid it is correct. 2 years qualifying serving came into affect from the 6th April 1988. If you left before then, 5 years of reckonable service were required.
This paragraph has been taken from the AFPS75 Explained Booklet that you can find on the Gov Website: "The minimum qualifying period of 2 years’ Service applies if you were in AFPS 75 on or after 6th April 1988. If you left Service before 6th April 1988, then you need to have completed 5 years of reckonable service."
what's the oldest you can serve in the Army? if i was to join at 43 years old (joining mpgs) and serve 17 years up to my 60th birthday would i receive immediate pension? BTW, thanks for these uploads..
Ya, if you did serve until you were 60 then you would get an immediate pension.
The oldest you could join army use to be 26 years old but I think it was raised to 34years old in late 1990s or early 2000s I remained on long term reserve untill age 60
I'm a Sponsored Reserve for 19 tank transporter squadron what's my pension going to be like?
From my understanding a sponsored reserve is where your employer has a contractual obligation to the MoD to supply, when needed, with a reserve capability for niche jobs.
There is very little information online about sponsored reserves and even less about pensions to do with SRs.
Eventhough you might be coming under military command, from my understanding, you are still being paid by your civilian employer and not the MoD.
I unfortunately can't give you a definitive answer as I don't know myself but I'd suggest talking with your employer about it as they should know.
Shit
Hi... let's say my pension right now is £9000. I took full lump sum when I left. Could you tell me, roughly how much I will be on once I'm 55?? Or could you tell me where to go to work it out. Thank you
I'm assuming your on the 75 and took out what is known as 'resettlement commutation'?
errrr, yes I believe so. I am just trying to figure out the extra payments I can make on my mortgage. Thanks again
Would it be possible to DM please? I think there is a fantastic opportunity for me to assist with topics/emerging allowances
You can DM me on Instagram @thesavvysquaddie
@@thesavvysquaddie will do, it’ll be from my wife’s account as I’m not cool enough for the Gram
AFPS 75 is just the very best….luxury…..
What happens aged 55 please? How much do the monthly payments go up by?
For me I retired after 22yrs on 75. Recieved Tax free lump sum and a monthly pension every month thereafter. When I hit 55 the following month my pension went up by the compounded yearly index link. My increase was over 33%. Hope that helps if your already in receipt of pension.
Looks like there is money 💰 problem as it keeps on going down and down 😇😎😎😎😎
Ya, unfortunately cuts were made and the pensions did suffer.