MONEY


as the member directs. If nobody is nominated, and there is no adult dependant, the lump sum goes to the deceased’s estate;


� The member’s spouse, civil partner or eligible partner will receive a pension of 62.5% of the member’s pension entitlement for life; and


� Eligible children will be entitled to pensions until they are age 18 or, if they are still in full time education or vocational training, up to age 23. If a child is unable to undertake gainful employment due to a mental or physical disability suffered before age 23 a pension is payable for life. How much is payable to each depends upon how many eligible children there are and whether or not an adult pension is to be paid too.


Those who transfer from the current schemes to AFPS 15 will have benefits from both schemes. For example, a Sergeant who left at age 40 with 22 years service having transferred to AFPS 15 at his 11 year point, would get: • An AFPS 75 pension worth 50% of the Sergeant’s 22 year rate plus a lump sum of three times that amount;


PLUS • An AFPS 15 deferred pension worth 1/47th of pensionable pay, with earlier years increased by the Earnings Index. This is payable at state pension age but may be drawn early with actuarial reduction; and


• An Early Departure Payment (EDP) Scheme lump sum of 2.25 times the deferred pension payable on exit; and


• An annual EDP income of 34% of the value of the deferred pension, also payable on exit. The EDP lump sum may be surrendered to improve the EDP income.


If the individual was an AFPS 05 member prior to transfer to AFPS 15, he or she could expect to receive: • An AFPS 05 preserved pension and lump sum payable at age 65. The pension is worked out by multiplying the final pensionable salary at his 22 year point by 11 and dividing by 70. The lump sum is three times the pension. These preserved benefits can be drawn as early as age 55 but, again, with actuarial reduction; and


• An EDP lump sum of three times the preserved pension and an EDP income of 50% of the preserved pension.


PLUS • An AFPS 15 deferred pension worth 1/47th of pensionable pay, with earlier years increased by the Earnings Index. This is payable at state pension age but may be drawn early with actuarial reduction; and


• An Early Departure Payment (EDP) Scheme lump sum of 2.25 times the deferred pension payable immediately on exit; and


• An annual EDP income of 34% of the value of the deferred pension also payable immediately on exit. The EDP lump sum may be surrendered to improve the EDP income.


If you find the above daunting and you are a member of the Forces Pension Society, you can call our dedicated help line on 020 7735 0110 or find answers on the Society’s web site. If you are not yet a member, the cost is modest and benefits (in addition to advice from an expert) include discounts on a range of useful products and services and the assurance that a dedicated organisation, independent of the Government, is there to help you get the most from your Armed Forces pension. For more information, go to www.ForcesPensionSociety.org. 


YOUR


LONDON HOME


All Ranks,Tri-Service members’club in London’s West End.


• 2 minutes from Oxford Street, Hyde Park and Marble Arch


• Modern, tastefully decorated bedrooms • Disabled friendly rooms • Rooms with air-conditioning • Free Wi-Fi throughout • Event Rooms for every occasion • Contemporary Lounge Bar for drinks, afternoon tea or light bites


• Club Restaurant, serving Modern European cuisine with a range of British classics


• Breakfast buffet with a wide range of healthy and traditional options


• Reading Room for a quiet escape


To book call us on 0207 440 1992 or email res@vsc.co.uk


The Victory Services Club for Veterans, Serving Members of the Armed Forces, and their families.


Victory Services Club JOIN | EAT & DRINK | CELEBRATE | STAY 10178-VSC_AllRanks_HomeportEnvoy_Ad_186x132.indd 1 www.raf-ff.org.uk Envoy Winter 2014


63-79 Seymour Street London | W2 2HF


27/10/2014 11:22


23


£44


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