Armed Forces Pension are complex, so it’s really important to understand your pension scheme and benefits throughout your service. How do you do that? Here are our top tips!
Let’s first kick off with the benefits of AFPS15, which in fact remains one of the best public sector pension schemes in operation Key Benefits of AFPS15
Understand your BIS. The Benefits Information Statement (BIS) is circulated by MoD to all serving personnel should annually, shortly after their birthday. The BIS is not your fornal forecast, it is a snapshot of the Pension/Early Departure Payment (EDP) as if the member were leaving service on their birthday that year and the spouse or civil partner benefits which would become payable if they were to die in service at that point. It separates the benefits so that it is clear which benefits result from which scheme, and when they are payable. It does NOT show benefits transferred in from other schemes, the value of any Added Years or Added Pension purchased, or the impact of divorce-related orders on the pension. Read more about the BIS here.
Get to know the Pension Calculator. If you are still serving, do use the MOD’s online calculator. This can be used by the majority of service personnel to model benefits against future or potential ranks and exit dates. Once you have your projection of benefits, please feel free to send this to us and we will explain your options to you. You’ll need to be a Member of the Society of course! Join us here.
Obtain a pension forecast annually from Veterans UK. All serving members of AFPS are entitled to apply to Veterans UK, for a formal forecast free-of-charge, once a year. This is done by submitting AFPS Form 12, available here. This form must can be submitted in hard-copy by post or online. Additional forecasts can be requested within a 12-month period but they attract an administrative charge.
Consider purchasing Added Pension
AFPS 15 allows members to purchase Added Pension by means of a contract which lasts up to a year. If you wish to continue making added contributions, you need to renew the contract annually. Contributions can be as little as a £300 lump sum or monthly instalments of £25 per month. This short commitment period, and the option to pay by lump sum, means that even if you are thinking of leaving shortly, you are not excluded. Read our factsheet here and a Q&A here. (Downloads)
Seek advice if entering into a Pension Sharing Order. It is a sad fact that many marriages and civil partnerships end in dissolution and, on top of the emotional stress and strains of the whole experience, worries about the impact on pensions just add to the mix. There are also misunderstandings which ramp up the anxiety levels. The Society has experts in this field which our members can contact for guidance. You might find this handy Q&A helpful. Pension Sharing Orders and Divorce Q&A
Seek advice if being considered for any medical awards. This is not easy stuff! Again we have experts in this field, and have written plenty on it. You might find this helpful reading:
Invaliding Benefits from AFPS75 and AFPS15 – How does that work?
Invaliding Benefits from AFPS05 and AFPS15 – How does that work?
Think before you leave! Do you know your worth, or how valuable your pension is?
Many serving personnel have little idea of the real value of their Armed Forces pension, or how much they would need to pay into a private pension to gain a similar income. You would be suprised!! See more here
Attend a unit brief. Our briefing programme aims to help educate the Armed Forces community on all pension matters and raise awareness on the complexities and benefits of their Armed Forces Pension. We take our pensions Roadshows to ships, air stations and garrisons and you can book by emailing our Roadshow Manager Rob Morris roadshows@forpen.co.uk or see our full programme here.
Finally, get to know your scheme: AFPS15 Booklet – AFPS05 Booklet – AFPS75 Booklet (Downloads)
IT PAYS TO UNDERSTAND YOUR PENSION!