NEW ARMED FORCES COMPENSATION SCHEME (AFCS)

FREQUENTLY ASKED QUESTIONS

OVERVIEW

What is the purpose of the new Armed Forces Compensation Scheme (AFCS)?

It replaces current arrangements for attributable benefits (under the War Pensions Scheme (WPS) and Armed Forces Pension Scheme 1975 (AFPS 75)) for those injuries, illnesses or deaths caused by Service after 6 Apr 05. It gives modern, fair and simpler arrangements, which focuses help better on the more severely disabled.

Who will run the new AFCS?

The Veterans Agency will be responsible for delivering the new AFCS. However, as we take implementation forward, we will be working hard to achieve a much more integrated delivery of pensions and compensation.

SCHEME DESIGN

Will attributable awards remain tax-free?

Yes. Awards under the new scheme for members’ attributable benefits in retirement will remain tax-free. As with the AFPS 75 scheme, dependants’ benefits will be taxed.

How will payments be made under the new AFCS?

A lump sum is payable to the Service person to compensate for pain and suffering based on a range of tariffs graduated according to the seriousness of the condition. A graduated Guaranteed Income Payment (GIP), payable for life, and will also be paid for those whose earnings capacity is significantly affected. (A widow’s GIP will also be payable for attributable deaths.)

What is the basis of the 15-tier tariff?

The illustrative tariff published in the Framework Document takes account of the Judicial Studies Board Guidelines for the Assessment of General Damages in Personal Injury Cases. It will be updated to take into account any developments in the guidelines and in medical understanding before the scheme is launched. The tariff will be regularly reviewed to take account of changing levels of award, notably in the courts and in developments in medical understanding.

There is a tariff for injuries, what would a widow(er) get paid?

The tariff sets out the lump sum award to a Service person or former Service person and in addition they may be entitled to a Guaranteed Income Payment (GIP). Surviving adult dependants (widows and partners from a substantial and exclusive relationship) with entitlement to AFCS will receive a GIP and also a lump sum of up to £20K. They will also receive benefits from the Armed Forces Pension scheme if partners of regular personnel.

Why will those with minor attributable injuries not receive as much in the future as under the AFPS 75 and WPS?

A lump sum for pain and suffering will be paid for an attributable illness or injury. It can now be paid for the first time to those who remain in the Armed Forces. An income payment to compensate for loss of earnings is not considered appropriate in circumstances where the earning capacity of the individual is not significantly impaired. This new scheme focuses resources better on those who are more severely disabled.

How will the scheme view ‘home to duty’ travel?

It is not appropriate to cover all home to duty travel. However, travel on detached duty and on emergency call-out is covered; also travel to Service Accommodation where none is provided within 50 miles of place of work.

Will claims for accidents whilst travelling home-to-duty still be covered under the current system for accidents that happen prior to 6th April 2005?

All accidents which occur between Service Families Accommodation and place of duty and which occur prior to 6th April 2005 are covered under the current arrangements.

How will the scheme view sporting injuries?

All publicly funded fitness training, sport and adventurous training that contributes to Service objectives of fitness, leadership and team or military skills qualifies as on-duty and is covered under the new scheme. Other sporting activities are not covered, and personnel will need to consider whether they should take out personal sporting death and injury cover.

Will War Pensions Scheme (WPS) supplementary allowances still be payable under the new scheme?

No, but the claimant will be eligible to claim the corresponding state benefits. It is no longer considered necessary to replicate the benefits, which are now available from the State, and which are paid on the basis of need.

Will payments under the AFCS be affected by other compensation payments from other sources?

AFCS payments will not be reduced if someone is getting DWP benefits. If someone has received compensation for the incident being claimed either through the courts or through the Criminal Injuries Compensation Authority then these payments may be taken into account. Pension benefits payable from the AFPS or RFPS will also impact on the AFCS GIP payments.

ELIGIBILITY

Who is covered?

All regulars and reserve Service personnel, for all attributable (ie due to Service) injuries, illnesses or deaths caused after 6 Apr 05.

If I remain with AFPS 75 can I choose to receive current benefits for injuries due to Service, including a War Pension?

No. All those who are injured or suffer ill-health caused by attributable Service after 6 Apr 05, when the new AFCS is introduced are automatically covered by the new scheme, even if they have chosen to remain in AFPS 75 or even if they are not a member of the AFPS.

Why is there a time limit for claiming attributable injuries?

The sooner a claim is made the better, in terms of ready access to evidence. However, a 5-year time-limit, together with an exceptions list for conditions whose onset we recognise may be delayed, and discretion for unpredictable cases, should ensure that all claims relating to injury or illness due to service are compensated.

Why is ‘balance of probabilities’ being used as the standard of proof for eligibility of claims?

The new scheme uses the ‘balance of probabilities’ standard of proof, as used in the civil courts and other occupational pension schemes. Experience shows that those who suffer an injury, illness or death as a result of their Service should not be disadvantaged by the proposed evidence-based assessment using the balance of probabilities standard of proof. Although the onus of proof has moved toward the individual, the MoD is required to support any claim by releasing relevant information (such as Service medical records). Where the evidence shows that Service is more likely than not the cause of a condition, a claim will be accepted.

Are fewer cases likely to be accepted?

Claims where there is reasonable evidence will be accepted under the new standard of proof. The new scheme proposes a 5-year time limit to claim. There is an exceptions list for late onset conditions, and there is discretion for cases where an individual has been unable to claim for exceptional reasons (e.g. continued ill-health). This is more generous than AFPS 75 which only provides compensation benefits for conditions which result in medical discharge. However, it is not open-ended like the WPS. These arrangements should provide ample opportunity for claimants who are injured or who become ill due to service to claim in time.

The Royal British Legion say they have major issues with the AFCS and that Armed Forces personnel will be disadvantaged.

There is no reason why someone whose injury is caused by service will be disadvantaged. We are confident that any claim where there is a causal link to service will succeed. Indeed, AFCS will offer several benefits currently unavailable under the AFPS 75 and War Pensions Scheme (WPS). Service personnel will be able for the first time to make in-Service claims and receive lump sums for pain and suffering. The scheme rules will focus compensation on the more severely disabled. Guaranteed Income Payments (GIP) will be paid for life, including to partners of either sex. The changes to time limits and standard of proof will mean that conditions that are age-related and occur many years post-Service generally will not be accepted, which is considered reasonable, given that service was unlikely to be the cause. We shall be monitoring the scheme and its outcomes very carefully.

Review and Appeal

Will the new AFCS allow for review in cases where the condition or disablement deteriorates over time?

There is not a routine review process – most awards are meant to be full and final. The level of the tariff takes into account the normal expected deterioration of a condition and the likely consequential condition. However, in cases of exceptional deterioration, significantly beyond that normally to be expected of a condition, the scheme has the discretion to review a case.

Is there an appeals process?

The scheme allows for internal reconsideration of a claim. Decisions on claims will be subject to appeal to the independent Pensions Appeal Tribunal (PAT). In line with the Leggatt Report, a second tier tribunal (Social Security Commissioners) will hear appeals from the PAT, instead of the High Court on points of law – and there are further layers of appeal to the Court of Appeal and the House of Lords on points of law. However, we envisage this being used as an exception, and very rarely. The Department for Constitutional Affairs is undertaking further work on the reform of the tribunal process in order to provide better customer service to appellants.

Last Updated: 10 Nov 05