Army Pension Impacts on State Pension

[Peter Gilfoyle]

Hi Guys

Getting close to that time in life and I wondered if anyone was aware of any detrimental impacts, on the state pension, as result of having a service pension - or visa-versa I suppose? I don't imagine there are any 'positive' impacts!!

Cheers

Peter[/size][/font] Gilfoyle

[Ken Hannah]

Hi Pete,

Long time no speak.....you and pension query...you must be taking it home in a wheel barrow .......

Your questions is either simple to answer or complicated depending on your personal circumstance.

Basically your OAP is paid tax free, therefore the tax element you would pay on that sum (depends on your whole earnings 20% tax rate etc) would come off your army pension so that would reduce your annual army pension....out of one pot into another ...simple so far .....but there could be an abatement also due to the opting out of SERPS in the 70s (remember the 70s Pete!!!).....it is quiet complex relating to NI contributions and GMP regulations (Guaranteed Minimum Pension)..... It effects some guys and not others as you can't get the the calculation on both the service pay and the OAP....one or the other but not both....some had it miscalculated on both so their service pension will be reduced .....Google GMP...to complex for here...I think it I explained in the annual pension newsletter you get with your penion increase....clear as mud eh?
[/align]
Basic answer to your question is - yes receipt of the OAP can reduce your service pension....after all that it is only pennies or pounds a year.....so no problem for you - going back to the wheelbarrow scenario...however in my case.........!

Get yourselves down to Stoke for the next reunion for a catch up....with an OAP, NHS, and Army you can fly down in your helicopter....Take Care.
Regards
Ken

[Peter Gilfoyle]

(08-17-2014 10:04 PM)Ken Hannah Wrote:  Hi Pete,

Long time no speak.....you and pension query...you must be taking it home in a wheel barrow .......

Your questions is either simple to answer or complicated depending on your personal circumstance.

Basically your OAP is paid tax free, therefore the tax element you would pay on that sum (depends on your whole earnings 20% tax rate etc) would come off your army pension so that would reduce your annual army pension....out of one pot into another ...simple so far .....but there could be an abatement also due to the opting out of SERPS in the 70s (remember the 70s Pete!!!).....it is quiet complex relating to NI contributions and GMP regulations (Guaranteed Minimum Pension)..... It effects some guys and not others as you can't get the the calculation on both the service pay and the OAP....one or the other but not both....some had it miscalculated on both so their service pension will be reduced .....Google GMP...to complex for here...I think it I explained in the annual pension newsletter you get with your penion increase....clear as mud eh?
[/align]
Basic answer to your question is - yes receipt of the OAP can reduce your service pension....after all that it is only pennies or pounds a year.....so no problem for you - going back to the wheelbarrow scenario...however in my case.........!

Get yourselves down to Stoke for the next reunion for a catch up....with an OAP, NHS, and Army you can fly down in your helicopter....Take Care.
Regards
Ken

---

Hi Ken

Many thanks for this, very much appreciated. If it just the impact of tax on whole earnings then not a lot to do about it. Same thing will apply if I go and get a wee job in B&Q or ASDA; just for the discount!

Wheelbarrow? A very small one and probably smaller that yours, matey!!

Mind you, it is (will be) helpful, having Army, NHS Superannuation and state pensions but, you pays your dues and cross your fingers and sometimes it works out! You'll be in the same boat won't you, didn't you work for a local authority or something?

Stoke in March is definitely out this time round, unfortunately. What with holidays (October), Christmas, and getting married in April the cash is gushing out of the account. Hopefully I'll be in a better position post-April, to come down to some of the does; may depend upon the exchange rate though and whether I have been ethnically cleansed from Scotland by then! May even need two passports!

Thanks again, Ken, oh font of all knowledge!

Cheers

Peter

[Philip Olive]

(08-19-2014 05:51 PM)Peter Gilfoyle Wrote:  

(08-17-2014 10:04 PM)Ken Hannah Wrote:  Hi Pete,

Long time no speak.....you and pension query...you must be taking it home in a wheel barrow .......

Your questions is either simple to answer or complicated depending on your personal circumstance.

Basically your OAP is paid tax free, therefore the tax element you would pay on that sum (depends on your whole earnings 20% tax rate etc) would come off your army pension so that would reduce your annual army pension....out of one pot into another ...simple so far .....but there could be an abatement also due to the opting out of SERPS in the 70s (remember the 70s Pete!!!).....it is quiet complex relating to NI contributions and GMP regulations (Guaranteed Minimum Pension)..... It effects some guys and not others as you can't get the the calculation on both the service pay and the OAP....one or the other but not both....some had it miscalculated on both so their service pension will be reduced .....Google GMP...to complex for here...I think it I explained in the annual pension newsletter you get with your penion increase....clear as mud eh?
[/align]
Basic answer to your question is - yes receipt of the OAP can reduce your service pension....after all that it is only pennies or pounds a year.....so no problem for you - going back to the wheelbarrow scenario...however in my case.........!

Get yourselves down to Stoke for the next reunion for a catch up....with an OAP, NHS, and Army you can fly down in your helicopter....Take Care.
Regards
Ken

---

Hi Ken

Many thanks for this, very much appreciated. If it just the impact of tax on whole earnings then not a lot to do about it. Same thing will apply if I go and get a wee job in B&Q or ASDA; just for the discount!

Wheelbarrow? A very small one and probably smaller that yours, matey!!

Mind you, it is (will be) helpful, having Army, NHS Superannuation and state pensions but, you pays your dues and cross your fingers and sometimes it works out! You'll be in the same boat won't you, didn't you work for a local authority or something?

Stoke in March is definitely out this time round, unfortunately. What with holidays (October), Christmas, and getting married in April the cash is gushing out of the account. Hopefully I'll be in a better position post-April, to come down to some of the does; may depend upon the exchange rate though and whether I have been ethnically cleansed from Scotland by then! May even need two passports!

Thanks again, Ken, oh font of all knowledge!

Cheers

Peter

Hi each, I am sure the OAP is taxable. When I retired at 66 with a years accrual of OAP the first thing they did was remove nearly a third of the lump sum in tax.

Regards
Phil

[Ken Hannah]

(08-20-2014 08:47 AM)Philip Olive Wrote:  

(08-19-2014 05:51 PM)Peter Gilfoyle Wrote:  

(08-17-2014 10:04 PM)Ken Hannah Wrote:  Hi Pete,

Long time no speak.....you and pension query...you must be taking it home in a wheel barrow .......

Your questions is either simple to answer or complicated depending on your personal circumstance.

Basically your OAP is paid tax free, therefore the tax element you would pay on that sum (depends on your whole earnings 20% tax rate etc) would come off your army pension so that would reduce your annual army pension....out of one pot into another ...simple so far .....but there could be an abatement also due to the opting out of SERPS in the 70s (remember the 70s Pete!!!).....it is quiet complex relating to NI contributions and GMP regulations (Guaranteed Minimum Pension)..... It effects some guys and not others as you can't get the the calculation on both the service pay and the OAP....one or the other but not both....some had it miscalculated on both so their service pension will be reduced .....Google GMP...to complex for here...I think it I explained in the annual pension newsletter you get with your penion increase....clear as mud eh?
[/align]
Basic answer to your question is - yes receipt of the OAP can reduce your service pension....after all that it is only pennies or pounds a year.....so no problem for you - going back to the wheelbarrow scenario...however in my case.........!

Get yourselves down to Stoke for the next reunion for a catch up....with an OAP, NHS, and Army you can fly down in your helicopter....Take Care.
Regards
Ken

---

Hi Ken

Many thanks for this, very much appreciated. If it just the impact of tax on whole earnings then not a lot to do about it. Same thing will apply if I go and get a wee job in B&Q or ASDA; just for the discount!

Wheelbarrow? A very small one and probably smaller that yours, matey!!

Mind you, it is (will be) helpful, having Army, NHS Superannuation and state pensions but, you pays your dues and cross your fingers and sometimes it works out! You'll be in the same boat won't you, didn't you work for a local authority or something?

Stoke in March is definitely out this time round, unfortunately. What with holidays (October), Christmas, and getting married in April the cash is gushing out of the account. Hopefully I'll be in a better position post-April, to come down to some of the does; may depend upon the exchange rate though and whether I have been ethnically cleansed from Scotland by then! May even need two passports!

Thanks again, Ken, oh font of all knowledge!

Cheers

Peter

Hi each, I am sure the OAP is taxable. When I retired at 66 with a years accrual of OAP the first thing they did was remove nearly a third of the lump sum in tax.

Regards
Phil

Hi Phil,

The OAP is a taxable allowance but isn't taxed at source....hence why other 'income'
is reduced by tax% of your OAP....your case is slightly different in that you retired later and accrued what would have been paid had you took OAP at 65......you and young Gilfoyle are both in the 'taking it home in a wheelbarrow brigade'......me on the other is a poor old OAP with only an army pension and OAP....don't have a civvie job pension....I will bore you to death with that one over a drink in November?
Regards
Ken

[Peter Gilfoyle]

(08-20-2014 06:36 PM)Ken Hannah Wrote:  

(08-20-2014 08:47 AM)Philip Olive Wrote:  

(08-19-2014 05:51 PM)Peter Gilfoyle Wrote:  

(08-17-2014 10:04 PM)Ken Hannah Wrote:  Hi Pete,

Long time no speak.....you and pension query...you must be taking it home in a wheel barrow .......

Your questions is either simple to answer or complicated depending on your personal circumstance.

Basically your OAP is paid tax free, therefore the tax element you would pay on that sum (depends on your whole earnings 20% tax rate etc) would come off your army pension so that would reduce your annual army pension....out of one pot into another ...simple so far .....but there could be an abatement also due to the opting out of SERPS in the 70s (remember the 70s Pete!!!).....it is quiet complex relating to NI contributions and GMP regulations (Guaranteed Minimum Pension)..... It effects some guys and not others as you can't get the the calculation on both the service pay and the OAP....one or the other but not both....some had it miscalculated on both so their service pension will be reduced .....Google GMP...to complex for here...I think it I explained in the annual pension newsletter you get with your penion increase....clear as mud eh?
[/align]
Basic answer to your question is - yes receipt of the OAP can reduce your service pension....after all that it is only pennies or pounds a year.....so no problem for you - going back to the wheelbarrow scenario...however in my case.........!

Get yourselves down to Stoke for the next reunion for a catch up....with an OAP, NHS, and Army you can fly down in your helicopter....Take Care.
Regards
Ken

---

Hi Ken

Many thanks for this, very much appreciated. If it just the impact of tax on whole earnings then not a lot to do about it. Same thing will apply if I go and get a wee job in B&Q or ASDA; just for the discount!

Wheelbarrow? A very small one and probably smaller that yours, matey!!

Mind you, it is (will be) helpful, having Army, NHS Superannuation and state pensions but, you pays your dues and cross your fingers and sometimes it works out! You'll be in the same boat won't you, didn't you work for a local authority or something?

Stoke in March is definitely out this time round, unfortunately. What with holidays (October), Christmas, and getting married in April the cash is gushing out of the account. Hopefully I'll be in a better position post-April, to come down to some of the does; may depend upon the exchange rate though and whether I have been ethnically cleansed from Scotland by then! May even need two passports!

Thanks again, Ken, oh font of all knowledge!

Cheers

Peter

Hi each, I am sure the OAP is taxable. When I retired at 66 with a years accrual of OAP the first thing they did was remove nearly a third of the lump sum in tax.

Regards
Phil

Hi Phil,

The OAP is a taxable allowance but isn't taxed at source....hence why other 'income'
is reduced by tax% of your OAP....your case is slightly different in that you retired later and accrued what would have been paid had you took OAP at 65......you and young Gilfoyle are both in the 'taking it home in a wheelbarrow brigade'......me on the other is a poor old OAP with only an army pension and OAP....don't have a civvie job pension....I will bore you to death with that one over a drink in November?
Regards
Ken

Why Ken! You do say the nicest things! Not been called "young" anything for some time!!

It was good (for me) to hear of your experinece, Phil, as I was thinking about working on for one or two years to increase my superannuated years. However, rapidly coming to the conclusion that it probably isn't worth it; from your experience and other factors.

I am so pleased I asked the question of TBoB's! Nothing 'deminishing' about your guys! Clear responses, no frills or ambiguity and first hand knowledge of where I was coming from.

Couldn't you all go set up an advice centre, or perhaps write a plain English fact sheet for the various 'Forces' advisory services? Its like swimming through treacle! They could make a modest contribution to a chosen charity perhaps?

Cheers

Peter