As we continue to challenge any reduction to the tax-free Lump Sum Allowance (LSA), we highlight the potential impact such a measure would have on the veteran community.
Veterans who may be impacted include:
- Those in second careers building another pension pot
- Those on AFPS 05 promised a pension lump sum at age 65 of a value already determined in a pension award notification
- Those on AFPS 15 approaching State Pension age, who may have already planned to commute a lump sum
In his Labour Conference speech on 23 September, the Secretary of State for Defence pledged that:
“This Labour government, will be a government that: Renews the nation’s contract with those who serve, and our veterans….“
Should the Chancellor choose to reduce the LSA in her 30 Oct budget it would breach the very ‘contract’ with those who serve and our veterans that the Government are seeking to renew. We strongly urge the Government to reconsider.
Further reading: Is my Armed Forces pension tax-free lump sum safe?
