Pensions Veterans Britain
There are two Armed Forces pension schemes for members of the Regular Armed Forces.
a ) The first was introduced in 1975 and was closed to new entrants from 6 April 2005. This is known as AFPS75.
b ) On 6 April 2005, a new scheme was introduced for new entrants, known as the Armed Forces Pension Scheme 2005 (AFPS 05). Members of AFPS 75 were given the opportunity to transfer to AFPS 05 on 6 April 2006.
AFPS 75. This scheme is no longer open to new applicants.
Details of Current (2005) Pension Scheme.
' As a member of the Armed Forces Pension Scheme 2005 (AFPS 05), you could earn a range of benefits to help provide financial security for you and your dependants up to retirement age and beyond. You make no direct contributions towards your basic benefits under AFPS 05, although your pension benefits are taken into account when your pay is assessed. If you wish to, you may be able to increase your pension benefits, by buying added years.
Your pension will start to build up from your first day of paid service, and after 35 years' service you could achieve a pension worth 50% of pensionable pay. Longer service up to a maximum of 40 years will count towards your pension.
The Armed Forces Pension Scheme covers many different circumstances, from normal retirement to retirement on medical grounds, and to pensions for widows, widowers and children. All the rates are usually revised annually on 1 April. Some of the main features are:
Immediate pensions. Officers may get a pension as soon as they leave the Army once they have completed 16 years' reckonable service ( Minimum Reqd Service ) from the age of 21.
Soldiers may get a pension as soon as they leave the Army once they have completed 22 years' reckonable service from the age of 18. The level of pension in both cases would represent approximately 30% of the salary for the rank of the individual officer or soldier.
A gratuity of three times the annual rate of pension awarded is payable in all cases. If you are eligible to receive an immediate pension, you can also opt to give up a portion of your pension in return for a lump sum - this is known as resettlement commutation. Commutation is, however, a privilege and not a right and you must apply for it before you are 55.
Preserved pensions. If you leave the Army with insufficient service for an immediate pension, you are entitled to a 'preserved pension', provided that you have at least 2 years' service (counting from the age of 21 for officers and 18 for soldiers).
Preserved pensions are payable at the age of 60,or earlier in the event of permanent disablement. Gratuities are also paid at this time, again at the rate of three times the annual pension awarded.
Resettlement grants. In addition to a preserved pension, officers who complete at least 9 years' service from the age of 21 and soldiers who complete at least 12 years' service from age 18,receive a resettlement grant. If you get a pension as soon as you leave the Army, you will not be entitled to a resettlement grant.
Increments to Senior Pensioners,after 55 years of Age. Immediate pensions are not increased at all until you reach the age of 55. Then they are increased to include all pension increases that have been awarded since the pension was first paid. Rates are increased annually thereafter. When preserved pensions are issued at age 60, they are revised to take into account any increases in pension rates since the pension was earned. Rates are increased annually thereafter.
Less Penion on Divorce. Pensions benefits on divorce. Your pension may be affected if you get divorced.
Armed Forces Compensation Scheme ( Like Disability Pension )
The Armed Forces Compensation Scheme is for Serving personnel and ex-Service personnel whose injuries, wounds and illnesses arose on or after 6 April 2005. More information can be found by following the Veterans-UK link on the right
War Pension scheme ( War Wounded )
The War Pensions Scheme is for ex-Service personnel whose injuries, wounds and illnesses arose prior to 6 April 2005. This scheme also covers War Widows and Widowers Pensions. More information can be found by following the Veterans-UK link on the right.
Pension benefit changes for ex-spouses
As a result of recent change in legislation, former spouses and civil partners now have the option to claim their pension benefits from the age of 55 (If you are interested in having your pension paid at age 55, or immediately if you are already over age 55, you should write to:
Service Personnel and Veterans Agency (SPVA)
Pensions on Divorce Section
Mail Point 480
65 Brown Street
Glasgow G2 8EX