This week’s question circles around medical discharge, the Guaranteed Income Payment (GIP), and benefits from AFPS15 with an example of the payments you might receive.
Question:
Due to an injury that I sustained in-service, I have been awarded a level 9 Guaranteed Income Payment (GIP) of £14,200 per annum, payable immediately on leaving the RAF. Will I receive both the Armed Forces pension & GIP payments in full?
Answer:
As its name suggests, GIP will provide you with a guaranteed minimum income.
If you receive a GIP from the Armed Forces Compensation Scheme (AFCS), the amount paid to you will be adjusted to take into account any income streams that you may already be receiving under AFPS 15.
If you receive an ill-health pension for the same injury for which your GIP is awarded, that entire pension will be considered within the GIP payment. If you receive a GIP and your ill-health Tier changes from Tier 1 to Tier 2 or Tier 3, the full annual value of your ill-health pension will be deducted from your GIP. So, for example if your pension/EDP is £12,000 per annum, your GIP award would be £2,200 per annum. However, if your pension/EDP is £14,200 per annum there would be no entitlement to any GIP
Next week, we have something on rejoining for you, meanwhile you can read more in this series here.
