Page 26 - issue03.05.2019

How would you cope if the unthinkable happened?

a pension for life of 62.5% of the members pension en- enhancement is half of the 27 years he could have
Not every Serviceman
and woman puts them- titlement based on their actual Reckonable Service (RS) served until 60 multiplied by his average pension (13.5 x
selves in harm’s way, plus ½ of the service he or she could have given to age £900=£12,150) but he is entitled to only 4/15th of that
but all need to consider 55.** If this totals more than 37.33 years’ service, the (£3,240).
how their spouse or adult pension will be based on 37.33 years. Toby’s adjusted entitlement would have been £6,840
partner would fare if (£3,600+£3,240). His wife’s entitlement is 62.5% of his
they were to die in service AFPS 15: spouse, civil partner or eligible partner* adjusted entitlement – so £4,275 pa.
– for whatever reason. benefits comprise: Had his earlier service been as an AFPS 75 member,
In this short article Mary a death-in-service lump sum worth four times pension- Toby’s entitlement would be based on his pension as if
Petley of the Forces able pay; and he had retired ‘normally’ with 11 years’ reckonable serv-
Pension Society looks a pension for life of 62.5% of the pension entitlement ice (£5,319.77) plus 11/15 of the difference between the
at what the three Armed based on the member’s RS plus ½ of the service he or 15 year pension rate of pension for his rank (£7,254.30)
Forces Pension she could have given to age 60.** and the 15 year invaliding rate for his rank (£9,232).
Schemes (AFPSs) His total entitlement would be £5,319.77 plus
would provide should * to be eligible both must be single, the partner must be £1,448.85 (£1,975.70 x11/15) totalling £6,768.62, so his
the worst happen. cohabiting with the member and he or she must be fi- wife would receive £3,384.31pa in addition to her AFPS
nancially dependent or interdependent with them 15 pension.
First, the benefits paid under the rules of each of the ** this may be subject to reduction if the spouse, civil There would be no STFP payable – the larger AFPS
three schemes as they apply to people who have only partner or eligible partner is more than 12 years younger 15 death-in-service lump sum more than making up for
been members of one scheme. than the member. it. These figures are arrived at using the 2018/19 Pen-
sion Code plus an assumed increase of 2%.
AFPS 75: spouse or civil partner benefits comprise: Personnel who were under the age of 48 on 1 April 2015 Had his earlier service been as an AFPS 05 member,
a death-in-service lump sum worth three times the spot were transferred to AFPS 15 on 1 April 2015 and have Toby’s unadjusted pension enhancement would have
rate of pay for the member’s rank – not their actual protected benefits in their ‘old’ scheme. been 11 years (half of the number of years he could have
salary, which is particularly relevant in the case of Med- That means that there are potential entitlements under served to age 55) but he is only entitled to 11/15ths of
ical & Dental Officers where the difference is very signif- both their ‘new’ and ‘old’ schemes but any benefits paid this enhancement (8.0667 years).
icant (to the detriment of the individual); by one scheme are taken into account when benefits are His pension entitlement would be based on his 11
a Short Term Family Pension (STFP) – this means the assessed under the other. years’ reckonable service plus the additional 8.0667
spouse or civil partner would receive the member’s pen- years (total of 19.0667 years), multiplied by his FPP, then
sionable pay for 91 days (182 days if there are eligible Time for an example! divided by 70 (the pension scheme’s accrual rate
children); followed by Toby joined the RAF on 1 April 2004 - his 18th birthday. (18,0667 x 40,000/70 = 10,323.83. His wife would re-
a pension of 50% of the member’s pension entitlement He was a married man who died on 31 March 2019 as a ceive £10,323.83 x 62.5% = £6,452.39 pa in addition to
based on Invaliding Rates, payable for life. Sergeant. This gives him 11 years in his ‘old’ scheme her AFPS 15 pension.
But do note that unmarried partners are not eligible under (either AFPS 75 or AFPS 05) and 4 years in the ‘new’.
AFPS 75 rules unless the death is deemed to be attribut- His Final Pensionable Pay (FPP) is £40,000 and his Not easy!
ableto service, in which case there may be an entitlement. AFPS 15 pension is £3,600pa.
If you are a Member of the Forces Pension Society
AFPS 05: spouse, civil partner or eligible partner* From AFPS 15 his wife would receive: and have a pensions-related question, please email
benefits comprise: 1. a lump sum worth four times pensionable pay pensionenquiries@forpen.co.uk. ADVERT
a death-in-service lump sum worth four times pension- (£160,000); If you are not a Member but would like to know more
able pay; and - Toby’s annual pension would have been £3,600. His about us, visit www.forcespensionsociety.org FEATURE

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