Armed Forces Pension Scheme 05
Armed Forces Pension Scheme 05 (AFPS 05)
This is the pension scheme for all personnel joining the Service on or after 6 April 2005, or those who elected to transfer from AFPS75 under the Offer to Transfer. Under AFPS05 you will be entitled to pension benefits provided that you have at least 2 years’ reckonable service. Benefits are based on final pensionable pay, which is the greatest amount of pensionable pay you receive for 365 consecutive days over the last 3 years of reckonable service. If you leave before age 55 (having completed at least 2 years reckonable service) you will be entitled to a preserved pension and a tax free lump sum; payable when you reach age 65. If you retire at 55 or over you will be entitled to an immediate pension and a tax free lump sum of 3 times your annual pension. If you leave before age 55, but have reached at least age 40 and having served at least 18 years, you will get an Early Departure Payment (EDP) tax-free lump sum and an EDP income paid until age 65.
Web site: MOD Defence Issues - Armed Forces Pension Scheme 05 (AFPS05)
Dependants’ Benefits (AFPS05)
Dependants’ pensions are only payable if the member has two years’ or more reckonable service. If, at the time of death, the member has a spouse or civil partner, they will be eligible to receive a pension. Partners, other than civil partners, are also eligible to receive a pension, providing that it can be demonstrated that a substantial relationship existed and there is no spouse or civil partner.
The spouse, civil partner or partner will receive an index-linked pension worth 1/112th of pensionable pay for each year of service the member was entitled to count towards pension, up to a maximum of 37.33 years. Pensions may also be payable in respect of natural, adopted or stepchildren and any other children who are financially dependent upon the member. The amount payable is normally the balance of the pension remaining after payment of any spouse’s, civil partner’s or partner’s pension.
Web site: MOD Defence Issues – Family Pension Benefits (AFPS05)
Pension Rights on Divorce
If you are getting divorced you need to seek legal advice about any possible claim you may have in respect of your spouse's pension. As a result of recent changes in the law, the powers of Courts to take account of pensions in divorce settlements have been extended. Although some cases are still dealt with by offsetting (reallocating) the value of pension rights against other assets, in some cases the Courts have earmarked (set aside) part of the member's pension benefits to be paid to the former spouse when those benefits become due for payment. Where the member is already receiving a pension at the same time of the divorce, the Courts can make a similar order - known as an attachment order - in respect of that pension. The AFPS Pensions on Divorce booklet will give you further guidance but all interested parties are urged to seek competent legal advice.
Web site: MOD Defence Issues – Pension Benefits on Divorce