We promised you more of our myth-busting series for Pension Awareness week, so here we have a another handful of rumours we hear regularly.
I have received my Veng (Full) contract to extend my service, but the expiry date is the day before my 40th birthday and therefore I will be one day short of reaching the 20/40 Early Departure Payment (EDP) point on the AFPS 15.
You will qualify for your EDP and EDP lump sum providing you have completed 20 years of service and are aged 40 on the first day after retiring from service.
I have been told that I will get my half pension if leaving after 12 years’ service – is this correct?
No, that’s not correct but you would be entitled to a Resettlement Grant. The Resettlement Grant is a one-off lump-sum payment intended to help you transition to civilian life. When you leave the Armed Forces, you will be entitled to a Resettlement Grant provided you:
- Have served for at least 12 years.
- Are not entitled to an Early Departure Payment, ill-health award or an immediate pension.
- Have not previously received a Resettlement Grant.
- Are not a member of the Reserve Forces.
If you receive a Resettlement Grant, you will still be eligible to receive a deferred/preserved pension when you reach age 65/State Pension Age
I completed 20 years regular service (2000-2020, retiring as an OF3) and I am now on a 2 year Full Time Reserve Service (FTRS) contract. I currently receive an Early Departure Payment (EDP) from AFPS 15 as I completed the 20 years’ service required and was aged 40 when I left the Services. I’ve been told by a colleague that when I complete my FTRS contract that I will receive an additional EDP from AFPS 15 – is that correct?
EDP is only accrued during regular service and not during any kind of reserve service, including FTRS. During your FTRS you have been accruing pension on the ‘15 scheme, and this will be added to the ‘15 deferred pension that you accrued during your regular service. This will come into payment at your State Pension Age, unless you serve to age 60 in which case the ’15 scheme pension will come into payment immediately.
Veterans UK won’t give me a forecast for my medical discharge until I have submitted my Pen Form 1 – is this right?
Veterans UK will only provide a medical forecast once the Tier award (for AFPS 05 or AFPS 15) and exit date have been decided by a medical board. This decision is not in anyway linked to the submission of your Pen Form 1. Additionally, the sections you will need to complete, and the options for how you wish to take elements of your pension benefits, will change dependant on your Tier award. It will be easier to wait until you have received your forecast before submitting the Pen Form 1.
READ THE FULL SERIES HERE