At no. 9 in our chart is Added Pension
Q: I believe that I can make additional contributions to my ’15 Scheme pension. How do I do this?
A: You need to make a minimum contribution of £25 per month or £300 lump sum for the year. You do not pay tax on your contributions as they are deducted from your gross pay before tax is paid on the remainder. The ‘contract’ for your contributions runs from April to March each year, and you will need to renew the contract each year if you wish to continue contributing to your ’15 Scheme pension; it will not renew automatically.
To set up the ‘contract’ you need to complete an AFPS Form 6, which you can find on the Veterans UK website. You complete the form and sign it, and then post it to Veterans UK in Glasgow. Veterans UK will then send back to you an AFPS Form 6A notifying you of the additional pension that you will accrue based on your proposed contributions.
If you are satisfied with the additional pension accrual, you sign Form 6A and return it by post to Veterans UK. This becomes the ‘contract’ between you and Veterans UK for the year in question.
If you add to your pension in this way, it will increase your ’15 Scheme pension when you reach State Pension Age, and it will also increase your Early Departure Payment and tax-free lump sum when you leave the Services.
Check back tomorrow for No. 8 - Lifetime Allowance