New AFPS & Compensation Schemes
KEY FEATURES OF THE NEW COMPENSATION ARRANGEMENTS
The key features of the new compensation arrangements are:
- It will cover all Service personnel injured on or after introduction (even if individual remains in current AFPS) replacing the current War Pensions Scheme and AFPS attributable benefits.
- It will provide a tariff-based lump sum award for pain and suffering. The tariff will have 15 levels of award, based on the Judicial Studies Board Guidelines for the Assessment of General Damages in Personal Injury Cases and be reviewed periodically (current maximum of £280K).
- It will offer a Guaranteed Income Stream (GIS) for life for those at higher levels of tariff (1-11) to compensate for loss of earnings capacity. The value of the income stream will be set at different levels, dependent on the degree of loss of earnings capacity caused by the disablement.
- Dependants. For an attributable death, a Guaranteed Widows’ Income Stream (GISW) will be awarded. An additional attributable Widows’ Compensation lump sum of £20K would be paid for death in retirement. For deaths in service, the estate will receive a lump sum of four times pensionable pay from the pension scheme but, if three times pensionable pay plus £20K is a greater amount, the balance of that amount will be paid from the injury scheme. Where there are children there will also be a children’s income stream.
- With immediate effect (this includes current scheme) provision is made for registered unmarried partners (including same sex partners) for all deaths resulting from service.
- For the first time, in-service awards for injury for all will be paid for pain and suffering, including for injuries arising from warlike acts and terrorism.
- The scheme is designed to be administratively straightforward for the majority of claims and will be run by administrators with access to specialist medical and legal advice where needed.
- The scheme will use the "balance of probabilities" standard of proof, in line with civil claims.
- There will be a time limit to claim of 5 years from the event or after retirement where no particular incident caused the condition, but there will be an exceptions list for late-onset conditions and discretion within the scheme for exceptional cases.
- There will be no regular review mechanism. Awards will generally be final with provision for interim awards where the long-term prognosis is unclear and for review in exceptional cases where significant unexpected complications arise. There will be an internal disputes resolution procedure and an independent appeals process using the Pensions Appeal Tribunal and the Social Security Commissioners, compliant with ECHR.
- The scheme will be supported by a welfare support service.
- It will be a no-fault scheme; a claim against the scheme would not prevent individuals making a claim for negligence against the MOD.
- These attributable benefits will be in addition to those non-attributable benefits under the AFPS on medical discharge or death-in-service, but there will be a netting off to avoid double compensation (eg for loss of earnings capacity).
- The new scheme will be broadly cost-neutral. There will be some increase in up front costs due to the payment of lump sums for pain and suffering
Last Updated: 20 Apr 04
