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Advice & Guides

Redundancy?

There are currently two main redundancy schemes for regular members of the Armed Forces:

  1. The Armed Forces Redundancy Scheme 2006 (AFRS06) pays redundancy compensation under the Armed Forces Redundancy Scheme Order 2006.  AFRS06 is designed to run alongside the Armed Forces Pension Scheme 2005 (AFPS05).
  2. The Armed Forces Redundancy Scheme 2010 (AFRS10) pays compensation under the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Scheme) (No. 2) Order 2010.  AFRS10  runs alongside the Armed Forces Pension Scheme 1975 (AFPS75)

These schemes are explained in full in a MOD document called 'The Armed Forces Redundancy Schemes' available here

As yet there is no redundancy scheme to match up with AFPS15 but with the latest McCloud consultation document, committing to AFPS15 for the future (At least from 01/04/2022), a new redundancy scheme would seem to be inevitable.

The purpose of the existing schemes is to ensure that a member of the Regular Armed Forces who is selected for redundancy or Directed Early Retirement (DER – primarily affects senior officers 1* and above) will be entitled to receive a lump sum in compensation for shortening their career.

Interestingly the payment of a redundancy lump sum would seem to be the only situation where a member can receive a resettlement grant alongside another immediate payment on exit.

To receive a resettlement grant a member needs to have served for at least 12 years (9 reckonable years for an Officer on AFPS75), and leave service being entitled to no other immediate pension benefits (pension, Early Departure Payments EDP, medical discharge invalidity benefits etc).

To calculate your Armed Forces redundancy benefits click here

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