Terms and Conditions
The Armed Forces Pension and Annual Allowance Calculator is for guidance purposes only. It is not intended to provide you with financial advice. If you require financial advice, you should contact an independent financial adviser. Your unit administration staff have a list of Services Insurance and Investment Advisory Panel (SIIAP) approved independent financial advisers, although you are free to use any independent financial adviser that you wish.
What will the calculator provide?
The Pension and Annual Allowance Calculator provides a guide to the pension benefits you could expect to receive under Armed Forces Pension Scheme 1975 (AFPS 75) or Armed Forces Pension Scheme 2005 (AFPS 05). The calculator does not show dependants benefits, ill-health benefits, AVCs, transfers in or pension sharing figures. In addition, the AFPAAC cannot give a forecast projection when qualifying service is different to reckonable service. The calculator will initially ask you to confirm which pension scheme you are in. The forecasts that the calculator provides are based on 2012 pension codes (for AFPS 75 members) and 2012 pay rates (for AFPS 05 members).
Pension Tax - Annual Allowance
If you hold the rank of OF3 and above there is also the option to calculate your Annual Allowance (AA) and any unused allowance from previous years that you may be entitled to carry forward. The AA is the amount that an individual's pension savings can grow each year without being taxed. For the tax year 2011/2012 the AA limit is £50,000. If you have exceeded the AA, SPVA will write to you with a statement. The calculator can only give an estimate on a complete tax year. Scheme Pays pension reduction is indexed linked and will increase each April in line with the Consumer Price Index.
"IMPORTANT INFORMATION"
FUTURE ARMED FORCES PENSION SCHEME – ACCRUED RIGHTS
2012DIN01-063 outlined the pension rights in AFPS 75 and AFPS 05 that will have been accrued prior to the introduction of the new AFPS from 2015. As a result the forecasts provided by this calculator are no longer complete projections of future entitlement beyond 2015. The calculator will still provide a general guide to benefit entitlement for those due to retire before 2015 and those who are covered by the additional transitional protection outlined in the DIN (ie those who are born on or before 1 April 1967 for regular forces). Details of the new AFPS are being developed and additional information will be promulgated in due course. A revised Pensions Calculator, incorporating both accrued rights and benefit entitlements under the new scheme, will be developed once the final design of the new scheme is agreed. On current planning assumptions it is anticipated a revised calculator will be on line from April 2013.
Aggregation of Previous Armed Forces Preserved Pension Awards
If you have rejoined the Armed Forces and have a preserved pension award in the AFPS 75 you are entitled to aggregate your most recent period of previous service with your current service. However, you must apply to do so in writing, to SPVA, Pensions Division (Aggregation), Mail Point 480, Kentigern House, 65 Brown Street, Glasgow, G2 8EX before terminating your service.
AFPS 75 - If you are a member of AFPS75 and have insufficient service on your current engagement and have not opted to aggregate your previous service you may not qualify for immediately payable pension benefits. You will only be entitled to a second preserved pension award.
AFPS 05 - If you are a member of AFPS 05 and are aged 55 or over on the date you leave service, and have not opted to aggregate your previous service, your immediate pension at age 55 or over will be based on your current period of service and your earlier service will be paid to you as a preserved pension at age 65. If you leave service before the age of 55 with insufficient service for an early departure payment, your previous and current awards will be deferred until you are age 65.
To calculate your pension forecast for aggregated service you add your preserved pension service to your current service.
MPGS
The MPGS are excluded because it is too complicated to include all the different circumstances that might apply to you. MPGS personnel should contact SPVA(GL) if you require a forecast of benefits.
Medical
If you are being discharged for medical reasons you should contact SPVA (GL) for a forecast of benefits.
Although every effort has been made to ensure that the information provided is as accurate as possible, no representation or warranty, express or implied, is given as to its accuracy and the MOD does not accept any liability for error or omission. The MOD shall not be liable for any loss or damage arising from the use of, or inability to use, the Pension and Annual Allowance Calculator, or any material contained in it, or from any action or decision taken as a result of using the Pension and Annual Allowance Calculator or any such material.
If you require an official pension benefit statement you should contact SPVA in writing. All personnel are entitled to one forecast per annum.
You cannot use the calculator unless you accept these terms and conditions by checking the ‘accept’ box below.
(you have to accept the terms to continue)