Royal Air Force Reservists from 606 (Chiltern) Squadron based at RAF Benson are pictured taking part in a training weekend at the base
“Contains public sector information licensed under the Open Government Licence v2.0.”
April 2015 draws closer for the NEW Armed Forces PENSION SCHEME
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n 1 April 2015 a new Armed Forces pension scheme is to be introduced – AFPS15. Personnel who,
on 1 April 2012, were aged 45 or over (for AFPS 75 and AFPS 05 members) or 50 or over (for RFPS members) will remain in their current schemes but everyone else – the vast majority – will transfer to AFPS 15 on 1 April 2015. The pension benefits built up before the transfer will be protected and paid at the point at which individuals expected them to be paid.
The big difference between the old schemes and this new scheme is that, instead of being a final salary scheme, AFPS 15 pensions build up at the rate of 1/47th of pensionable pay for every year of service, with earlier years being
Envoy Winter 2014
adjusted by an Earnings Index (probably the National Earnings Index). This principle, called Career Averaging, lends itself well to every type of Armed Forces service and, for the first time, service with the Part Time Volunteer Reserve is to become pensionable from 1st April 2015 too. The Early Departure Payment Scheme and Resettlement Grant provisions will, like now, only apply to Regulars.
The main provisions are: � Those who serve to age 60 get their AFPS15 pension paid immediately they leave;
� Those who leave before age 60 for non- medical reasons get a deferred pension payable at their state pension age. They can choose to draw it at or after age 55 but it will be reduced to take account
of the fact that it will be in payment for longer;
� There is no automatic pension lump sum but 25% of the value of the pension pot can be surrendered to create one. For each £1 of the value surrendered you will buy a £12 tax free lump sum.
� Those who are medically discharged will get benefits based on the severity of the condition. Medical conditions placed in Tier 1 receive a deferred pension (plus an immediate compensatory lump sum from a separate scheme): conditions placed in Tiers 2 and 3 receive an enhanced pension payable immediately;
� If an individual dies in service. his or her nominated beneficiary will receive a lump sum of four times your pensionable pay. More than one beneficiary may be nominated and the lump sum divided
www.raf-ff.org.uk
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