Forces Pension Society

Fighting for the forces and their families

Added Pension Increases

October 9, 2018
Facts

The AFPS15 pension scheme allows all active members of that scheme the opportunity to purchase more pension entitlement, over and above that earned through service, to increase one’s eventual pension award.

It has become apparent many who take advantage of this opportunity fail to grasp the fact that, whilst the AFPS15 pension they are earning through their service progressively increases each year by Average Weekly Earnings Indexation, the additional pension purchased is increased by the Consumer Prices Index (CPI) – the same index used to increase pensions once you leave the Services.

Therefore, there is most likely to be a small difference in the increase in value of your added pension when compared to the pension earned through service. This does not mean that the added pension will increase at a lower rate; indeed, it is quite possible that during the period between purchasing the added pension and leaving the service the CPI inflation rate ends up being greater than the AWE rate, meaning your added pension will have done better as far as increased value is concerned.

< More from News