Don't Miss Out: The Impact of the 2015 Pension Remedy & Age Discrimination
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- เผยแพร่เมื่อ 10 ก.ค. 2024
- Don't Miss Out: The Impact of the 2015 Pension Remedy & Age Discrimination
Were you one of the affected individuals discriminated against based on your age and moved over to the AFPS15? Then this video maybe of use to you.
In 2015, major changes were made to public service pension schemes seeing those in the Armed Forces move onto the new Armed Forces Pension Scheme 2015. However, those within ten years of normal retirement age as of 1st April 2012 were allowed to stay on their existing scheme, thanks to "Transitional Protection." Others were moved to the new AFPS15. But a legal challenge in 2018 found this to be age-discriminatory, leading to a remedy.
To be in scope, you must have been in pensionable service on an Armed Forces Pension Scheme on or before 31st March 2012, and still in service on or after 1st April 2015, with no breaks exceeding five years. If you joined after 31st March 2012, or left before 1st April 2015, this doesn't apply to you.
If you are in scope, you have a choice of pension benefits from 1st April 2015 to the 31st March 2022, known as the Remedy Period.
The Remedy consists of two stages. Stage 1, known as the Prospective Remedy, moved all active members to AFPS15 starting from 1st April 2022. This was done to end age-based discrimination.
Stage 2, the Retrospective Remedy, began on 1st October 2023. It rolled back those in scope to their legacy pension scheme.
So as part of this remedy, if you have benefits in payment, nothing changes until you make your choice. For those with Transitional Protection, you're already on AFPS15 since April 2022.
Active members will see future forecasts reflect the legacy scheme for the Remedy Period, but they can choose to revert to AFPS15 later.
A Remedial Service Statement (RSS) will be provided, allowing you to compare pension benefits from each scheme. By 1st April 2025, all in-scope personnel should receive their RSS.
There are two choices: Immediate Choice for those already receiving pension benefits and Deferred Choice for those who aren’t. The choice must be made within 12 months from the date of issue for Immediate Choice and 6 months for Deferred Choice.
It is very important to choose the best option. The RSS will help as well as the Armed Forces Pension Calculator. However, the Forces Pension Society can also help. With big decisions that affect your retirement, it can be wise to seek professional advice to make sure you are making the right choices.
Links:
Help Support What I Do - www.buymeacoffee.com/thesavvy...
2015 Remedy Explained Booklet - assets.publishing.service.gov...
Armed Forces Pension Calculator - www.mod-pc.co.uk/
Armed Forces Pension Calculator Explained - • Have You Used The New ...
Forces Pension Society - forcespensionsociety.org/join...
Timecodes:
0:00 Intro
0:47 How did the 2015 Remedy (McCloud) happen?
1:34 Am I in-scope for the 2015 Pension Remedy?
2:24 What happens if I am in-scope for the 2015 Pension Remedy?
2:43 What is the 2015 Pension Remedy?
4:22 How does the Retrospective Remedy Rollback affect me?
5:21 The Remedial Service Statement (RSS)
6:35 The Immediate Choice - 2015 Remedy
7:37 The Deferred Choice - 2015 Remedy
9:50 How do I submit my 2015 Remedy choice?
10:20 Final Thoughts
11:06 Outro
Sources:
www.gov.uk/guidance/pensions-...
forcespensionsociety.org/2023...
forcespensionsociety.org/wp-c...
assets.publishing.service.gov...
assets.publishing.service.gov...
assets.publishing.service.gov...
DISCLAIMER:
The views and opinions expressed in this video are my own and do not necessarily reflect the views of the British Army or the Ministry of Defence.
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.
UPDATE: @1:44 It should say "on/or before" NOT "on/and before".
Timecodes:
0:00 Intro
0:47 How did the 2015 Remedy (McCloud) happen?
1:34 Am I in-scope for the 2015 Pension Remedy?
2:24 What happens if I am in-scope for the 2015 Pension Remedy?
2:43 What is the 2015 Pension Remedy?
4:22 How does the Retrospective Remedy Rollback affect me?
5:21 The Remedial Service Statement (RSS)
6:35 The Immediate Choice - 2015 Remedy
7:37 The Deferred Choice - 2015 Remedy
9:50 How do I submit my 2015 Remedy choice?
10:20 Final Thoughts
11:06 Outro
Great video and very well explained. Thank you👍
You're welcome. Thanks for the comment.
I got a biff chit pension and lost out on just over 2 years service when I was forced into the 15 scheme. The way the booklet reads is like I’m going to a lot better off with taking the legacy benifits.
The way I’ve read it, is that they will owe me X-amount per month for the last 7 years, and then they will increase my monthly pension to match it, but that lump sum will likely be mainly offset by the lump sum I got at discharge on the 15 scheme which I will have to pay back (but the amount they owe me will be more anyways).
That’s my understanding but maybe I’ve completely misunderstood.
Is there any information regarding EDP timescales being reverted?
I believe it was 18/40 on the 05 scheme and was changed yo 20/40 on the 15.
Not to my knowledge, the 20/40 EDP point was always a feature of the 15 scheme as was the 18/40 for the 05 scheme. EDP is a retention tool so the eligibility criteria could have been increased with the 15 scheme to keep more people in for longer.
So - if you left service with EDP on 15, then elect to go back to 75 you will be liable for ‘recoveries’?
Does that mean I've automatically been rolled back to the 05 SCHEME for that 7 year remedy period? I've had a letter but it said if have to pick and make a choice. Then nothing since. I rang jpac briefly and they said I should have had paperwork to pick which one I wanted for that period. Then I've read online it's automatic going back to legacy for that 7 year period? So confusing.
The Retrospective Remedy rolls back all those in scope who did not have transitional protection to their legacy pension scheme for that 7 year period.
So in your case, from the understanding of your circumstances that I have with what you have provided, you have been rolled back to the 05 scheme for that period. If you are still serving or had service from April 2022, that would then be on the 15 scheme.
With regards to making a choice, that hugely depends on when your pension benefits are due. Most people had that 'warning order' but it is the RSS that matters most. The RSS is being sent out but those who are already in receipt of pension benefits and those soon to leave are being prioritised. If you are still serving, then you won't be getting it for a while.
Good explanation. I’m on a deferred 75 pension, left in 1985, so thought it unlikely it affected me. But that was never very clear from the newsletter we get. (Probably written by an officer!) 😂
@@thesavvysquaddie brilliant totally get it now mate. Thanks for this video as the pension briefs arnt always clear.
I wonder how this will affect people who I.e like me did 20 years on 75 then moved to 15 then a 3/4 years then med discharge, so my pension now goes up every year. There are so many things to this that they will end up making mistakes I can see it now
Medical discharge does add some complexity. Within the description of the video I link my sources aswell as the Remedy Explained Booklet. There is a chapter in there which covers med discharge which might be of value to you.
Looks like they will need to put me in a tier and go from there, very complicated and will have to be done on individual basis
has anyone received there RSS yet? I am part of the Immediate choice cohort and a "pensioner" so will be interested to see who gets there's in the first batch and if Royal mail deliver it registered/signed for mail. I can see a lot going missing unfortunately.
Hopefully it should be with you soon. The MoD have also released a downloadable pdf guide on how to understand the RSS. assets.publishing.service.gov.uk/media/65573b1d544aea0019fb2ef0/Remediable_Service_Statement__RSS__User_Guide.pdf
@@thesavvysquaddie 6 months on, nowt received still. Gotta love the wheels of government.