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FINANCIAL Have you heard what happened to


Charlotte


Sergeant Andy Hughes was deployed to Afghanistan in 2013 and being a single person, he saw nothing amiss in nominating afriend to receive any lump sum due under Armed Forces Pension Scheme 05, should he die. Andy survived his deployment and returned to the UK. Three years later in August 2016, he married Charlotte.


In October 2016 Andy Hughes died as aresult of acar crash. Although he had visited his orderly room and changed his will and next of kin details –and thought he had done everything right, he had not changed his death benefit nomination. As such, Veterans UK paid the death in service lump sum –awhacking £120,000 –to Sergeant Hughes’s original nominee.


Ican hear you thinking ‘how come?’ so let me explain. AFPS 05 and AFPS 15 both feature tax free lump sums paid out in the event of amember’s death. If the member dies in service, the lump sum is four times pensionable pay.Ifthe member dies before


Mary Petley of the Forces Pension Society explains what happened and why.


nomination form and the death lump sum is paid automatically to the spouse, civil partner,children or the estate).


The MOD’s current interpretation of the rules is that the nomination remains valid unless: •The nominee dies before the member; •The nominee and the member were married or in acivil partnership and that relationship is dissolved, or


•The nominee is convicted of the murder or manslaughter of the member.


Mary Petley.


In every other circumstance, the nomination is treated as valid unless the member changes it. So, if anomination is made and the member’s personal circumstances have changed –perhaps he or she has married –the nomination form must be reviewed. If it is not, the wrong person may get the lump sum –possibly an ex-girl or boyfriend or even the bloke who was sitting next to the member when he filled out the form several years ago.


pensionable pay. If the member dies before claiming their preserved or deferred pension, the lump sum is three times the pension earned. Members can specify where this lump sum should be paid by completing an AFPS Form 2 (this form does not apply to AFPS 75, which has no


Charlotte is appealing the MOD decision and the Forces Pension Society is supporting her because we believe that the MOD has a discretion in such cases as hers, as is normal with many other pension schemes. But even if she wins, this does not


alter the fact that Charlotte has had alot of unnecessary upset at atime when her life is quite distressing enough. Our message from this is that although the form is easy to complete, it must be kept up to date if it is not to become aticking time bomb. If in doubt ask Veterans UK if you have ever completed such aform and if so, ensure it reflects your current circumstances.


If you are a Member of the Forces Pension Society and have questions about this or any other pension-related issue, email pensionenquiries@forpen. co.uk. If you are not a Member but would like to know more about us, visit forcespensionsociety.org


If you are aMember of the Forces


26


Envoy


Autumn 2017


raf-ff.org.uk


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