Armed Forces Pensions - Gratuity Payment

I am trying to find out how much my RAF gratuity would be reduced by if we agreed to a pension share. The gratuity works out as 3 times your annual pension, so would it be reduced to 3 times whatever my pension was worth after the pension share was deducted? What would happen if the PSO came into force after my gratuity had already been paid to me in full - would I have to pay some of it back?

I thought the gratuity received when leaving the forces was separate to the pension?.

The pension itself is split by the % agreed or imposed so that you both have your own pension in the same scheme.

I`m sure lots of guys will know the answer to your question but if no one answers contact peter@bdm he works with pension experts and will defiantly know.

The Pension and gratuity are all part of the same thing.

The Pension would be shared between the two of you at the % agreed.

This will also be the case with the gratuity or lump sum when you leave the RAF. You will receive your share of the lump sum when you leave the RAF and your stbx/ex will recieve hers(?) at 55 along with the pension.

Not sure what happens if the gratuity has already been paid but Im sure someone will be able to help you. It may help to know whether this is actually the case.

Asram

Thanks for the reply. The gratuity is based on the size of pension and is paid as a tax free lump sum. I'm trying to find out that if my pension is reduced by a PSO, is my gratuity reduced also - because my annual pension would be less after the PS.

Thanks. Do you know whether the percentage paid to my wife as a pension credit automatically reduces my pension by 3 times the annual pension credit, or can she opt not to take a share of the gratuity.

Leggo

Im not sure about this 3 times the "annual pension credit".

You would probably need to speak to SPVA, the booklet below may also answer some of your questions.

www.rafcom.co.uk/pay_allowances/pdf/divo...pension_benefits.pdf

Have had a quick scan of the booklet and there is quite a bit of info there which should help.

Hope this helps

Asram