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Our Top Ten Pension Q&A

At No. 2 we have McCloud, and there's no surprise here that this topic would be nudging the top of our enquiry chart.

Here are some typical questions...

Q. When will I be contacted regarding which pension scheme I wish to be a member of for the McCloud remedy period?

A. You will not be required to make a decision as to which pension scheme you wish to be a member of for the remedy period until you retire from the Services.  Veterans UK will contact everybody who is affected by this issue in due course, we are not sure exactly when, but we understand that it is unlikely to be until after Apr 2022.  We understand that SP who have already left the Services will be prioritized, followed by those leaving shortly.  When Veterans UK contact you they will provide guidance as to what you will require to do and when.

Q. What happens if I have already taken my benefits since 1st April 2015?

A. Members in scope who have already retired and received a pension/EDP award, from either the legacy scheme (AFPS75 or AFPS05) and/or reformed scheme (AFPS15), will be given a choice as soon as practicable once the legislative changes are implemented. Any revised award will be backdated to the date their pension/EDP award was made. Members who retire between now and the implementation of the changes will be treated in the same way.

Q: I know we will have the option to revert back to AFPS 75 under the McCloud judgement and I will choose this when the time comes. However, I want full commutation regardless and I am not sure of how I would work this out on the current 75/15 forecast.  Could someone please point me in the right direction? Also how can I work out my ‘75 scheme pension on its own, for information purposes?

A: We're afraid it is too early to speculate on the detail of what a return to your legacy scheme (AFPS 75) might look like as there is still much work to be done - there is not yet a facility available to enable you to forecast an AFPS 75 only pension. Veterans UK/MoD are currently working with legislators to re-draft the scheme rules and build the administration systems that will allow matters to progress.  It is only once these new frameworks are in place that FPS will be able to begin to answer individual questions relating to the implications for members of the latest developments. As frustrating as this is for us all, it is perhaps worth remembering that even if we had all the answers (which we don’t yet), none of this knowledge is ‘actionable’ at present.  We expect that when the process is in place, it will start with you receiving a communication from MoD/Veterans UK, providing you with your options. We expect this to include comparative figures which will allow you to choose whichever option is more beneficial to you. We are asking all members to “stand easy” until they receive the initial communication from Veterans UK. It is not until you have this that we will be able to provide individual guidance.

The Society has recently published a ‘timeline’ to give our members guidance on the McCloud remedy implementation, the details of which can be found here.*  As the situation progresses and we learn more about the remedy implementation, we will update the timeline accordingly.

The latest news that we have from MOD is that the online calculator will be updated to reflect individual pension schemes, and it is hoped it will be available early 2022.  This will allow personnel to do comparative calculations for their legacy scheme and AFPS 15. In the meantime we will continue to update our website (including McCloud FAQs*) and on social media, as more information (including timelines when known) become available to us.

*Both the Member Guide and the McCloud FAQs are a benefit of Membership with us only accessible via the Members Area of the website.

Check back later today for the Pension Enquiry Chart Topper!

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