It’s our final Q&A in this series, and we finish on this very important issue of dependants benefits
I retired from the Armed Forces last year. I live with my partner of eight years; we are not married, and we don’t have any children. I am in receipt of an AFPS 75 immediate pension and AFPS 15 Early Departure Payment benefits. If I die, how much of my pension and benefits will my partner receive?
For a dependant to be eligible to receive any benefits from AFPS 75 you must be married. If you were to die within 6 months of marrying, however, Veterans UK would investigate to ensure the marriage was not entered into for purely financial gain. AFPS 15 does not require you to be married for your partner to be eligible to receive dependant’s benefits.
If you were to marry and pre-decease your spouse, AFPS 75 would pay a pension to them in two stages: initially they would receive the short-term family pension in the immediate aftermath of your death, which is based on your full pension and is payable for 91 days. After the short-term pension, your spouse would receive a long-term pension which is 50% of your original pension entitlement, payable for life. If your death occurs within 12 months of your last day of pensionable service, AFPS 75 will pay a lump sum equal to three times representative pay for your rank, less the amount paid as a pension lump sum and any commutation lump sum taken.
AFPS 15 would pay a pension to your eligible partner providing they can prove that a substantial and exclusive relationship existed and there was financial dependence or interdependence. Submitting an AFPS Form 2 nominating your partner as the recipient of any lump sums that might be due in the event of your death provides evidence of your intention to make financial provision for your partner. If you pass away with a deferred AFPS 15 pension (i.e. before State Pension Age whilst your EDP income is in payment), your eligible partner would receive a pension of 62.5% of your deferred pension, adjusted for increases in CPI. This pension is payable for life. In addition, they would be eligible to receive a lump sum of three times the deferred pension. If your death occurs once the pension has come into payment, your eligible partner would receive 62.5% of the pension that was being paid to you. Furthermore, if your death was within 5 years of the pension commencing, a tax-free lump sum would be payable, equivalent to 5 years’ pension payments less the lump sum and any pensions already paid.
Well that’s it for this series. Did you miss any? don’t worry you read the whole series here.