AFPS05

If you leave the Armed Forces early because you suffer ill-health or become injured and are medically discharged, you may be entitled to an ill-health pension and lump sum under AFPS 05 arrangements.

Attributable benefits are not paid under AFPS05 but under the Armed Forces Compensation Scheme (AFCS) for injuries whose main cause is Service or or after 6 April 2005.

(For disability or ill-health caused by Service before 6 April 2005, attributable benefits may be payable under the Armed Forces Attributable Benefits Scheme 2010 (AFAB) and the War Pensions Scheme (WPS).

If you are medically discharged from the Services with two years or more qualifying service you may be awarded an ill-health pension, a tax-free pension lump sum or both. The benefits will be calculated according to the degree of your ill-health, your length of reckonable service and your final pensionable earnings. Ill-health pensions are currently increased annually in line with CPI and are taxable, unless your illhealth is deemed to be caused by Service in which case your pension is paid tax-free. The ill-health categories are split into three tiers.

These tiers are linked to the AFCS Tariff tables.

• AFPS 05 Tier 1 = AFCS Tariff levels 12 – 15

• AFPS 05 Tier 2 = AFCS Tariff levels 7 – 11

• AFPS 05 Tier 3 = AFCS Tariff levels 1 – 6

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.

What will I receive under each tier?

Tier 1

The payment will be calculated on the basis of 1/8th of your pensionable earnings multiplied by the length of your reckonable service, subject to a minimum of six months’ pensionable earnings and a maximum of two years’ pensionable earnings. In these circumstances, your pension benefits will be preserved until pension benefit age (currently age 65). If you have passed the EDP 18/40 Point, you will receive an EDP lump sum and monthly EDP income payments instead (see page 27), until your preserved pension comes into payment (currently age 65).

We are of the opinion that a Tier 1 award is unlikely to be appropriate for someone being discharged with MS as it is unlikely that future employment would not be impaired….We suggest if a Tier 1 award is made this should be challenged.

Tier 2

Your pension will be based on your reckonable service plus one-third of the time remaining up to the normal retirement age of 55; your pension lump sum will be three times your annual pension. Because this is more generous than the EDP, it replaces the EDP for those serving beyond the EDP 18/40 Point. No further pension benefits are payable at pension benefit age (currently age 65).

We think that any case where members are discharged with anything other than a Tier 2 award (and in a few cses Tier 3) should be challenged. 

Tier 3

You will be awarded a taxable ill-health pension based on your reckonable service plus half the time remaining to the normal retirement age of 55, with a minimum pension based on 20 years’ service. You will also receive a pension lump sum (currently tax-free at time of publication) of three times your annual pension. Because this is more generous than the EDP, it replaces the EDP for those serving beyond the EDP 18/40 Point. No further pension benefits are payable at pension benefit age (currently 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 AFCS  for details of the scheme or the leaflets detailed below. The scheme is thoroughly explained on the Veterans UK website

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