Understand the rules around AFPS and Reserve Service
When Armed Forces Pension Scheme 2015 (AFPS15) was introduced it included all Reservists as Scheme members. This was the first time that a single AFPS applied both to the Regular and Reserve Forces, so of course the same tips we have given for Regulars also apply to Reserves.
However, we thought it might be helpful to highlight some areas here that relate specifically to Reserve service that we have picked up on when briefing Reserve units, and through correspondence with Regular service personnel wishing to join the Reserves either in a full or part-time capacity. In particular:
Pension accrual and payment, abatement and ill-health benefits. Read more.
Also you can download: Reserve Forces and Pension Benefits Q&A and FTRS Effects on Pension Benefits Factsheet
And here are your main tips to consider:
Understand your BIS. The Benefits Information Statement (BIS) is circulated by MoD to all serving personnel should annually, shortly after their birthday. The BIS, which was updated last year, is a snapshot of the pension/EDP as if the member were leaving service on their birthday that year and the spouse or civil partner benefits which would become payable if they were to die in service at that point. It separates the benefits so that it is clear which benefits result from which scheme, and when they are payable. It does NOT show benefits transferred in from other schemes, the value of any Added Years or Added Pension purchased, or the impact of divorce-related orders on the pension. Read more about the BIS here.
Get to know the Pension Calculator. If you are still serving, do use the MOD’s online calculator. This can be used by the majority of service personnel to model benefits against future or potential ranks and exit dates. Once you have your projection of benefits, please feel free to send this to us and we will explain your options to you. You’ll need to be a Member of the Society of course! Join us here.
Consider purchasing Added Pension
AFPS 15 allows members to purchase Added Pension by means of a contract which lasts up to a year. If you wish to continue making added contributions, you need to renew the contract annually. Contributions can be as little as a £300 lump sum or monthly instalments of £25 per month. This short commitment period, and the option to pay by lump sum, means that even if you are thinking of leaving shortly, you are not excluded. Download our factsheet here and a Q&A here.
Obtain a pension forecast annually from Veterans UK. All serving members of AFPS are entitled to apply to Veterans UK, for a formal forecast free-of-charge, once a year. This is done by submitting AFPS Form 12 to Veterans UK. You can download it here. This form must can be submitted in hard-copy by post or online. Additional forecasts can be requested within a 12-month period but they attract an administrative charge.
Read your scheme booklet: Reserve Service Pension Schemes
The MoD have also just released some information which you might find useful. Support and Benefits for Reservists and thier families
Attend a unit brief. Our briefing programme aims to help educate the Armed Forces community on all pension matters and raise awareness on the complexities and benefits of their Armed Forces Pension.
We take our pensions Roadshows to ships, air stations and garrisons and you can book by emailing our Roadshow Manager Rob Morris roadshows@forpen.co.uk or see our full programme here.
