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ARMED FORCES PENSIONS CALCULATOR INSTRUCTIONS

INTRODUCTION

Welcome to the Armed Forces Pensions Calculator. The calculator has been designed to assist all those who are eligible for the Offer to Transfer (OTT) from Armed Forces Pension Scheme 1975 (AFPS 75) to Armed Forces Pension Scheme 2005 (AFPS 05). By following a series of questions, and using drop-down menus, the calculator will allow you to compare benefits under AFPS 75 and AFPS 05 based on different views of your future rank and leaving date.

The calculator should be used with your OTT pack, which includes your personal benefit statement, AFPS 05 ‘Your Pension Scheme Explained’ booklet and your OTT ‘Guide to Making Your Pension Decision’ booklet. It is important that you read all of this information carefully and consider all elements of both pension schemes before making your pension decision. Remember that one scheme is not better than the other – they are just different!

WHO MAY USE THE CALCULATOR?

The calculator will give a comparison between AFPS 75 and AFPS 05 for all Regulars apart from the MPGS. The MPGS was excluded because it would have been too complicated to include all the different circumstances of this group.

HOW THE CALCULATOR WORKS

Once into the calculator, you will be faced with a disclaimer that you must accept before you may proceed. The information on your personal benefit statement (PBS) is based on your rank, rate of pay, reckonable service and type of engagement as at April 2005. The calculator will allow you to consider what your pension benefits might be if you were promoted, or served longer or offered more reckonable service to allow you to get an IP in AFPS 75 to compare with EDP in AFPS 05. (Individuals in this last category should note that you will be getting a second PBS before the end of August based on the completion of 22 years’ pensionable service and therefore showing a comparison between IP and EDP benefits.) On completion, the calculator will give a comparison of benefits between AFPS 75 and AFPS 05. Here are some points about the information the calculator provides and what it will do:

  • It will give a forecast comparison between your benefits under AFPS 75 and AFPS 05.
  • The information given is for guidance only and does not constitute an entitlement to the benefits stated.
  • The pension comparison will be based on whole years and will be rounded down eg 21 years and 200 days reckonable service will be rounded down to 21 years, for both schemes.  The personal benefit statement in your OTT pack is based on your actual service ie years and days.
  • It makes no account for future pay or inflation rises and so the comparisons it produces will not be the same as any future pension benefits you might receive.
  • It uses 2005 pay and pension representative rates. Please note that AFPS 75 pensions are based on a representative pay rate and that AFPS 05 pensions are based on your final pensionable pay (generally your last 12 months before leaving).
  • It assumes that the leaving rank you use is your substantive rank and you have held this rank for at least two years. For the rules on pension benefits and substantive rank, please speak to your unit administrative staff.
  • The calculator does not take into account any Additional Voluntary Contributions that may have been paid to improve benefits under AFPS 75.
  • It will not calculate life commutation.
  • It will not show any dependants’ benefits. Details are in the pension scheme booklets on this website.
  • IT WILL NOT MAKE YOUR PENSION TRANSFER DECISION FOR YOU. IT IS FOR YOU TO DECIDE WHAT TO DO HAVING REGARD TO YOUR OWN PARTICULAR CIRCUMSTANCES AND TAKING YOUR OWN INDEPENDENT FINANCIAL ADVICE, WHERE APPROPRIATE.

     Pensions Calculator

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    • Last Updated: 22 Jul 05