AFPS05

AFPS 05 offers ill-health benefits if a career is cut short by injury or illness, irrespective of cause or attributability.

Symptoms that started/occurred on or after 6 Apr 05

(members of AFPS 05 with symptoms pre 6 Apr 05 see Spanning cases)

You will be assessed under a system of tiers and tariffs according to your level of disability and ability for future employment.

How are the tiers allocated?

  • Tier 1

    For conditions which mean you are unable to do your service job, but your ability to get gainful employment is not deemed to be significantly impaired.

  • Tier 2

    For a breakdown in health which is not considered to leave you permanently incapable of gainful employment, although your employment prospects are deemed to be significantly impaired.

  • Tier 3

    For a breakdown in health which it is deemed leaves you permanently incapable of any further fulltime employment.

These tiers are linked to the tariff levels used for the AFCS. The tariff allocates medical conditions to one of 15 tariff levels and these map across the tiers as follows:

TierTariff Level
112 to 15
27 to 11
31 to 6

What will I receive under each tier?

Tier 1

If you are medically discharged under Tier 1 you will receive a tax-free lump sum to help you to adjust to your new circumstances. The payment will be calculated on the basis of one eighth of your pensionable pay multiplied by the length of your reckonable service, subject to a minimum of six months pensionable pay and a maximum of two years’ pensionable pay. In these circumstances your pension benefits will be preserved until age 65.

However, if you have reached the age of 40 with at least 18 years’ service (the Early Departure Payments Point (EDP 18/40 Point)) you will be entitled to EDP. This means that you will receive a tax-free EDP lump sum equivalent to three times your preserved pension (instead of the Tier 1 lump sum) and a taxable income of not less than 50% of your preserved pension.

Tier 2

If you are medically discharged under Tier 2, you will receive a taxable pension based on your reckonable service at the date of your discharge plus one third of the further reckonable service you could have built up if you had served on until the normal retirement age of 55. If you are over 55 you will not receive any enhancement to your pension. You will also receive a pension lump sum (normally tax-free) equivalent to three times your annual pension. As this is more generous than the EDP, it replaces the EDP for those serving beyond the EDP 18/40 Point. It is important to note No further pension benefits are payable at age 65.

Tier 3

If you are medically discharged under Tier 3 you will receive a taxable pension based on your reckonable service at the date of your discharge plus one half of the further reckonable service you could have built up if you had served on until the normal retirement age of 55. If this formula results in a total of less than 20 years’ service, you will instead receive a pension based on 20 years’ service. However, if you are over age 55 you will not receive any enhancement to your pension. You will also receive a pension lump sum (normally tax-free) equivalent to three times your annual pension. As this is more generous than the EDP, it replaces the EDP for those serving beyond the EDP 18/40 Point. Again, it is important to note No further pension benefits are payable at age 65.

Please note: the above awards are made irrespective of whether the illness/injury is considered to be attributable to service or not.

What if the condition is considered as attributable to service?

Attributable benefits are not payable under AFPS 05 like they were under AFPS 75 instead, compensation for conditions caused on or after 6 April 2005 will be considered under the Armed Forces Compensation Scheme (AFCS), please see the AFCS page for details of the scheme or the leaflets detailed below. The scheme is also explained on the Veterans UK website

If SPVA (Norcross) decide that your condition is attributable and was caused by service on or after 6 April 2005, it will make an assessment of your condition against a 15 level tariff. You will be awarded a tax free lump sum in line with the tariffs and may also be awarded a tax free Guaranteed Income Payment (GIP).

If a GIP is awarded under the AFCS for the condition which brought about the medical discharge, the ill-health pension under AFPS 05 or early departure payment (EDP) becomes tax-free. However, the ill-health pension will be deducted from the GIP and only the difference between the two will be added to the ill-health pension. The whole amount will become tax free.

Further Information

Leaflets applicable to AFPS 2005

Leaflets applicable to AFCS

Contact Info

If you need any further information about your claim or to obtain an update on the progress of your claim, please contact.

Free Veterans Helpline
Freephone 0800 169 22 77 (UK only)
0800 1914 2 18 Textphone facility (UK only)
+44 1253 866043 (Overseas)

Telephone lines are open:
8.15am to 5.15pm Monday to Thursday; and
8.15am to 4.30pm Friday

Mutual Support’s Pension Volunteers

Terl Bryant
Tel: 01780755734
Email: pensions-1@mutual-support.org.uk

Mark Paterson
Tel: 01294 203377
Email: pensions-2@mutual-support.org.uk