Defence IssuesNew AFPS & Compensation Schemes
NEW AFCS: FREQUENTLY ASKED QUESTIONS
Overview
What is the purpose of the new Compensation Scheme?
It replaces current arrangements for attributable benefits (under the War Pensions Scheme (WPS) and Armed Forces Pension Scheme (AFPS)) for those injuries, illnesses or deaths due to Service and caused after the date of introduction of the new scheme. It gives modern, fair and simpler arrangements, which focuses help better on the more severely disabled.
When is the Scheme to be introduced?
Our current intention is to introduce the scheme from April 2005 for all members of the Armed Forces whose injury, illness or death is caused after the date of introduction.
Who will run the new Compensation Scheme?
The Veterans Agency will be responsible for delivering the new Compensation Scheme. However, as we take implementation forward, we are 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. However, as with the current AFPS scheme, dependants’ benefits will be taxed.
How will the new compensation payments be made?
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 Stream (GIS), payable for life, will also be paid for those whose earnings capacity is significantly affected. (A widow’s GIS 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 and will be updated to take into account any developments in this and in medical understanding before the scheme is launched. Thereafter, the tariff will be regularly reviewed to take account of changing levels of award notably in the courts and developments in medical understanding.
Why will those with minor attributable injuries not receive as much in the future as under the current scheme?
A lump sum for pain and suffering will be paid for an attributable illness/injury and paid for the first time to those who remain in-service. However, an income stream to compensate for loss of earnings is not considered appropriate in circumstances where the earning capacity of the individual is not significantly impaired. The new scheme focuses resources better on those more severely disabled.
How will the scheme view ‘home to duty’ travel?
It is not considered appropriate to cover all home to duty travel. However, travel on detached duty and on emergency call-out will be covered; also travel to Service Accommodation where nothing is available 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 will be covered under the current arrangements.
How will the scheme view sporting injuries?
All publicly funded fitness training, sport and adventurous training qualifying as on-duty and contributing to Service objectives of fitness, and leadership, team or military skills will be covered under the new scheme.
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, which are paid on the basis of need.
Eligibility
Who is covered?
All regulars and reservists for all attributable (ie due to Service) deaths, injuries or illnesses caused after the scheme is introduced.
If I remain with the current AFPS can I choose to receive current benefits for injuries due to Service, including a War Pension?
No. All those who are attributably injured or suffer ill-health due to Service after the new Compensation Scheme is implemented will automatically be covered by the new scheme, even if they have chosen to remain in the current pension scheme.
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 probability’ 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. Our 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 would be on 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 that are supported by reasonable evidence will be accepted under the new standard of proof. The new scheme proposes a 5-year time limit to claim, but with an exceptions list for late onset conditions plus discretion for cases where an individual has been unable to claim for exceptional reasons (e.g. mental incapacity); this is more generous than the current AFPS which only provides compensation benefits for conditions that have led to medical discharge. However, it would not be open-ended like the War Pensions Scheme. These arrangements should provide ample opportunity for claimants who are injured or become ill due to service to claim in time.
The Royal British Legion state 60% less cases are likely to be accepted.
We have been in discussion with the legion about the claims. We do not accept the basis of its present conclusions. Firstly, the sample that it took was probably too small and not truly representative. Assumptions were also made about the effects of time limits that do not reflect the current behaviour of recently retired Service personnel.
Review and Appeal
Will the new scheme allow for review in cases where the condition or disablement deteriorates over time?
There is no routine review process. The level of the tariff takes into account the normal expected deterioration of a 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?
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 (the Social Security Commissioners) is proposed to hear appeals from the PAT, instead of the High Court. Further work is being undertaken by the Department for Constitutional Affairs on the reform of the tribunal process to provide better customer service to appellants.
Last Updated: 18 May 04