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Question of the Week

We’re ending the week with our question of the week, this one relating to medical discharge and pension increases.

I was medically discharged, and I understand my pension rises every year just wondering what happens at 55. Is there a big increase to my pension?

The rules are if you are discharged with an invaliding pension the annual pension increases (PIs) which you mention are payable from the outset. This means unfortunately there is no big increase at age 55. The increase you refer to only applies to those who leave with an AFPS75 Immediate Pension (IP) or with AFPS 05/15 Early Departure Payment (EDP) benefits, and are not yet aged 55, so the PIs are stored until they become payable at age 55. However, if you were given a tier 1 discharge, and that included an AFPS15 Early Departure Payment (EDP), then you can expect that part of your income to be increased in line with changes in the consumer price index (CPI) from age 55.

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