Armed Forces Pension Scheme 75

Am I eligible?

Serving members of the Regular Armed Forces who joined between 1 April 1975 and 5 April 2005 were automatically enrolled in the AFPS 75 scheme. From 6 April 2005, AFPS 75 was closed to new members.  Following legal challenges, in December 2018 the Court of Appeal found that transitional protection arrangements applied to the judicial and firefighters pension schemes gave rise to unlawful discrimination as transitional protection was only offered to older scheme members. In July 2019, the government confirmed that they would remove discrimination in those schemes by introducing a remedy period.

As part of the remedy, serving members in legacy pension schemes (AFPS 05, AFPS 75, previous Reserves pension schemes) who were previously offered transitional protection, moved to the AFPS 15 scheme on 1 April 22.  Any benefits built up in legacy schemes are protected, and members will receive benefits earned under legacy schemes at the same time as they originally expected to receive them.

When an Armed Forces pension becomes payable, if you are affected by the 2015 remedy, you will be offered the choice of which scheme benefits you wish to receive (the 75 scheme or the reformed 15 scheme), for the remedy period 1 April 2015 – 31 March 2022.

More information can be found on Defence Connect at Group: 2015 Remedy (McCloud). 

How is AFPS 75 calculated?

The AFPS 75 pension starts to accrue from:

• Officers – age 21

• Other Ranks/Ratings/Marines – age 18

For Officers at OF6 (Commodore, Brigadier, Air Commodore) or below and Other Ranks/Ratings/Marines, pension benefits are based on final pensionable rank and length of reckonable service. The final pensionable rank is based on the following:

• Officers – the highest substantive rank held for more than two years, or the highest paid acting rank held for three years, at any point in service

• Other Ranks/Ratings/Marines – the highest paid rank held for more than two years in the last five years of service.

In AFPS 75, members of the Armed Forces with the same rank and same number of years of reckonable service are normally awarded the same pension, regardless of their actual pay; this is known as the representative pay rate for the rank. Representative pay is calculated using specially selected rates of military salary and does not include extra amounts for those on bespoke pay spines.

For Officers at OF7 (Rear Admiral, Major General, Air Vice-Marshall) and above the pension is based on years of reckonable service and final pensionable earnings.  The only exception is the ill health pension which is based on a representative rate. 

The maximum service that can be accrued on AFPS 75 is:

• Officers – 34 years, and

• Other Ranks/Ratings/Marines – 37 years

When will I receive my pension?

This scheme will pay an immediate pension (annual pension and pension lump sum) when a Service person leaves Regular Service at the following points:

• Officers – after 16 years service from age 21

• Other Ranks/Ratings/Marines – after 22 years service from age 18

The pension is paid at a flat rate until age 55 when all the inflation increases are applied. After age 55 the pension increases by Consumer Price Index (CPI) every year. The one-off pension lump sum is three times your annual pension income.

If you leave the Armed Forces but you have not completed the required years to receive an immediate pension, a deferred pension is kept for you until pension benefit age. This is age 60 for members of the AFPS 75 scheme and age 65 for members of the 05 scheme.

What happens if I commission from the ranks?

Personnel commissioned from the ranks will be eligible for an officers immediate pension after 16 years qualifying service from the age of 21, once they have served at least five years as an Officer.

Service personnel who commission from the ranks and do not serve for five years as an Officer will receive an OR9 (Warrant Officer/Warrant Officer Class 1)pension with a commissioned service addition after 22 years’ service from age 18.

Do I get a Resettlement Grant?

 You may qualify for a Resettlement Grant if:

• Officers – you have at least nine years relevant reckonable service from age 21 and are not also entitled to AFPS 75 immediate pension; or any other Resettlement Grant.

• Other Ranks/Ratings/Marines – you have at least twelve years of relevant reckonable service on discharge from age 18  and are not also entitled to AFPS 75 immediate pension; or any other Resettlement Grant

The Grant is a fixed sum (Apr 2021 - Officers £16,597 and other ranks/ratings/marines £11,344). The Resettlement Grant is paid to help the Service person adjust to civilian life.

If I die, what pension benefits do my dependants get?

Spouse or civil partner

If you die in Service, your spouse or civil partner will receive a short-term pension (paid in the immediate aftermath of your death for up to 182 days), a long-term pension (once the short-term pension is paid), and a tax-free lump sum worth three times your representative rate of pay. Depending on which is worth more, your long-term pension is either: • Equal to one half of the pension that would have been received had you had been discharged for ill-health; or • Equal to one half of the value of an immediate pension (had you been entitled).

If you leave the Armed Forces with a deferred pension and die before this comes into payment, your spouse or civil partner will receive a long-term pension and a lump sum worth The long-term pension is equal to one half of your pension for Service given on or after 31st March 1973, and/or one third of your pension based on Service given for the period up to 31st March 1973. The lump sum is 3 times your annual pension that would have been paid if the pension had come into payment on the day of your death.

If you die after your pension has come into payment, your spouse or civil partner will receive a short-term pension (paid in the immediate aftermath of your death for up to 91 days for a spouse or civil partner with no children, or 182 days for a spouse or civil partner with eligible children), a long-term pension (once the short-term pension is paid) and, if you die within one year of your last day of pensionable service, a lump sum. The long-term pension is equal to one half of your pension based on Service given on or after 31st March 1973, and/or one third of your pension based on Service given up to 31st March 1973. The lump sum is equal to 3 times representative pay (minus any lump sum that you had previously received).

Eligible children

All eligible children are entitled to the long-term pension. It is up to one quarter of your pension for one child, or half your pension divided equally between your eligible children, with no child receiving more than a quarter of your pension.

How do I claim?

To find out how to claim your pension please visit DBS Vets UK and click Armed Forces Pensions.  The process will also be explained to you during the resettlement process and there are more details in the Service Leavers Guide