Forthe past 70 years, the Forces Pension Society has served the interestsoftheArmedForcesandtheirfamiliesastheirindependent pension watchdog. With four schemes now operating Armed Forces Pensions have never been more complex, so our Pension Advisory Service is busier than ever,dealing with enquiries from our Members.
These are just afew examples but you can do something which would help a lot -nominate your partner for your death- in-service lump sum. The AFPS 05 and AFPS 15 death-in service lump sum is worth four times your pensionable pay. To nominate to receive such alarge sum helps to show your commitment to support them financially in the event of your death. ForAFPS 75 it is three times pay but you cannot nominate the recipient. It is paid to either the spouse/civil partner or,ifnone, to the children or,ifnone, your estate. Only one scheme pays out, and that will be the scheme that the member belongs to at the time of his or her death.
Q. How do Inominate recipients of this lump sum?
A. It is easy.Do
wnload AFPS Form 2from the internet, complete it and send it to:
he absence of the legal trappings of marriage or civil partnership presents
particular considerations for unmarried couples –same-sex or heterosexual, the issues are the same. Service personnel do adangerous job and it is only right that they and their ‘significant other’ understand what the various Armed Forces Pension Schemes (AFPSs) provide should the worst happen. In this short article Mary Petley of the Forces Pension Society looks at death in service benefits for families, with aparticular emphasis on unmarried partners.
Q.Would my ‘other half’ get apension in the event of my death?
A. AFPS 75 will pay apension to aspouse or civil partner.Int
his, the oldest AFPS, an unmarried partner is only entitled to benefits if your death is due to service. AFPS 05 and AFPS 15 will pay apension to aspouse, civil partner or unmarried partner.Al
l unmarried partners who claim an AFPS pension will have to meet the ‘substantial partner’ test.
Q. What is this test?
A. Youmust be living together and your partner must be financially dependent on you or interdependent with you. Veterans UK will seek evidence of eligibility –they have to but they will do it sensitively.
Q. What sort of financial evidence would Veterans UK be looking for?
A. Evidence might include: Proof of bill sharing; Joint rent book; Joint bank account;
Awill or insurance policy each naming the other as the beneficiary.
12 Summer 2016
DBS, Pensions Division, Mailpoint 580, Kentigern House, 65 Brown Street, Glasgow,G28EX
Youcan nominate one recipient or more than one, stipulating how the lump sum is to be shared.
Q. If Idonot nominate my spouse or partner,is the lump sum lost?
A. No. If there is aspouse or civil partner it will be paid to them, or if Veterans UK agree that your partner is eligible to receive apension, they will receive it. However,nomination reduces delay,helps prove eligibility and makes your wishes clear.
Q. So how much will the AFPS 05 and AFPS 15 pensions be worth if Idie in service?
A. ForAFPS 05 and AFPS 15, the pension is worth 62.5% of your pension entitlement calculated as if you had been invalided with aTier 3health condition, and it is paid for life. Putting it as simply as possible, your pensionable service under each scheme would be increased by half of prospective service to age 55 (for AFPS 05) and to age 60 (for AFPS 15). If the increase plus the actual service totals less than 20 years (for AFPS 05) or 25 years (for AFPS 15), the higher figure is used. If you were transferred from AFPS 05 to AFPS 15 this increase is adjusted to reflect how much of your service you spent in each scheme. Thus, if someone had 9years in AFPS 05 and 3years in AFPS 15,¾ofthe AFPS 05 increase would be added to your actual time as in AFPS 05 and¼ofthe AFPS 15 increase times your average pension would be added to the actual AFPS 15 pension.
Q. And AFPS 75 adult pensions?
A. If you transferred to AFPS 15 on 1April 2015, the spouse/civil partner receives the Forces Family Pension (FFP) which is 50% of the invaliding pension for your rank and length of service, with the other 50% available for the children. Forthose who did not transfer to AFPS 15, there is aShort Term Family Pension (STFP) preceding the FFP.Th
is means that, if you die in service, your pensionable salary is paid for 91 days (if there are no eligible children) or 182 days (if there are). Thanks to the success of the Forces Pension Society campaign for Justice for Widows, AFPS 75 adult pensions are now paid for life.
Q. What about my children?
A. ForAFPS 05 and AFPS 15, your partner will get 62.5% of your pension entitlement. That leaves 37.5% of your pension to be divided between any eligible children.
An eligible child is any natural child or a child who is financially dependent on the member who is:
under 23 and still in full time education or vocational training; or
achild who is unable to work due to disability incurred before age 23.
ForAFPS 75, the age criteria above alter only in as much as age 18 reduces to age 17. The scheme expects you to have been married to the parent of the child (natural, adopted or astep-child) but, where death occurs in service, eligibility is extended to illegitimate children.
In all three schemes the sums available for the children are divided up as follows:
If an adult pension is in payment, no child can receive more than¼ofyour pension entitlement.
If an adult pension is not in payment and the children are not living with aparent or step-parent, no child can receive more than 1/3 of your pension entitlement.
If you areaMember of the Forces Pension Society and have questions about family benefits or any other AFPS issue, please email your query to firstname.lastname@example.org
.Ifyou are notaMember and would like to learn more about the Forces Pension Society,visit our websitewww.forcespensionsociety.org
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