Armed forces compensation scheme
Did you join the Armed Forces between 1975 and 2005
AFPS75 is a work-related pension scheme that began in 1975.
You may be a member of this scheme if you joined the Armed Forces between 1975 and 5 April 2005. However, you may have chosen to transfer to the Armed Forces Pension Scheme 2005 (AFPS 05).
Under AFPS75, your pension is payable to you when you are 55. The amount of your pension will depend on your rank and length of service.
You can use the Armed Forces pension calculator to give you a forecast of benefits that you will receive. Go to the Armed Forces Pensions Calculator website and answer the series of questions.
Did you join the Armed Forces after April 2005
If you joined the Armed Forces from 6 April 2005 onwards you will automatically be a member of theArmed Forces Pension Scheme 2005 (AFPS 05).
The AFPS 05 is a work-related scheme that began on 6 April 2005. It replaced the previous scheme AFPS 75. Anyone who joined the Armed Forces since this date is on the scheme unless they choose to opt out. Some people who were on the previous scheme (AFPS 75) have also chosen to join AFPS 05.
Under the AFPS 05 scheme, your pension is payable to you when you are 60. The amount of your pension will depend on your length of service and final salary.
Changes To The Armed Forces Pension
Preserved pensions
Preserved Pensions Overview and History. Veterans who have served in the Armed Forces since 1975 and did not qualify for an immediate pension may be entitled to a Preserved Pension(PP).
Prior to 6 April 1975 there was no provision for a preservation of pension benefits and Service personnel who left the Armed Forces had to have completed 16 years service from age 21 (Officers) or 22 years from age 18 (Other Ranks) to be eligible for a pension. Those who left before that date, without completing the above criteria, had no pension entitlement unless they were medically retired.
Pension rules changed on 06 April 1975 for pensions to be preserved for payment at age 60 for all those discharged over the age of 26 with a minimum of 5 years service. In 1978 the age criterion was removed. On 06 April 1988 the qualifying period was reduced from 5 to 2 years. The Armed Forces Pension Scheme (AFPS) 75 PP whose service ended before 6 April 2006 should claim their pensions, from SPVA, at age 60.
AFPS 75 pensioners whose service ended after 6 April 2006 but who had at least 2 years service before 6 April 2006 should claim the proportion of their pension which relates to their pre 6 April 2006 service at age 60 with the remainder becoming payable at age 65.
Early Payment of Preserved Pensions. Preserved Pensions may be paid early, subject to consideration by SPVA, if a Veteran has become permanently unable to work full-time, in any capacity, through ill-health, and this condition will continue until preserved pension age. Early payment of the pension may be subject to review and stopped if it is considered that the criterion for payment was no longer met.
Early Payment of Preserved Pensions with Actuarial Reduction. PP may be claimed early with an actuarial adjustment to take account of the longer period for which the pension will be in payment. The ages from which this form of early payment may be claimed are:
- AFPS 75 – the proportion of the preserved pension payable at age 65 may be claimed from age 60
- AFPS 05 – from age 55. Such a claim will not affect any EDP payments which are being paid.
- Reserve Forces Pension Scheme (RFPS) – from age 55.
2009 changes to DWP rules on the age at which Pension Credit Members’ benefits may be paid have allowed us to make a rule change in all the above schemes to allow those whose benefits had not yet been paid to claim them from age 55 with actuarial reduction.
What do I do next?
SPVA will not contact you to commence payment of a Preserved Pension you must contact them. To find out if you are entitled to a preserved pension ring or write to the SPVA JPAC Enquiry Service on 0800 085 3600 or 94560 3600 or alternatively: E-mail: <mailto:JPAC@spva.mod.uk> JPAC@spva.mod.uk
Why was the preserved pension age increased from 60 to 65?
Prior to 6 April 2006 all personnel who were in AFPS 75 and left before the immediate pension point having completed at least two years reckonable service had their benefits paid at age 60. For service after 6 April 2006 the preserved pension age is 65. The reasons for the increase to the preserved pension age was to take account the impact of longevity on public sector schemes.
