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AFPS75 & MPAA

NickDale
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AFPS75 & MPAA

#440622

Postby NickDale » September 8th, 2021, 2:03 pm

Shortly I have an option to drawdown a small AFPS75 military pension.

If I were to invoke the option would MPAA be triggered

tia

ursaminortaur
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Re: AFPS75 & MPAA

#440668

Postby ursaminortaur » September 8th, 2021, 3:54 pm

NickDale wrote:Shortly I have an option to drawdown a small AFPS75 military pension.

If I were to invoke the option would MPAA be triggered

tia


This military pension is a DB pension (based upon your length of service and the representative rate of pay for your final rank ie pretty much a final salary scheme) so taking it does not invoke the MPAA.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/911030/FINAL_DRAFT_-_AFPS_75_Your_Scheme_Explained.pdf

For the vast majority, AFPS 75 is calculated on your final rank and length of reckonable service (the actual years and days that count towards your pension). Members of the Armed Forces with the same rank and same number of years of reckonable service are normally awarded the same pension, regardless of their actual pay either at retirement or discharge, or earlier in their career. This is known as the representative rate of pay for the rank

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/money-purchase-annual-allowance-mpaa/

If you receive a scheme pension from any defined benefit arrangement this will not trigger the MPAA.


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