As part of the 2015 Remedy (McCloud), all personnel in scope who were previously unprotected having transitioned to AFPS 15 on 1st April 2015, were rolled back to their legacy pension scheme for their service in the remedy period. Roll back was not necessary for protected members because they remained in their legacy scheme during the remedy period, and did not transition to AFPS 15 on 1st April 2015 due to their age.
Rolling back members to their legacy scheme ensures everyone is returned to the position they would have been in had AFPS 15 not been introduced. Because of this it is necessary to recalculate the Pension Input Amounts (PIAs) in respect to everyone in-scope for the remedy, for the purposes of Annual Allowance, based on their legacy scheme benefits. This includes Immediate Choice (IC) members i.e. those who left the Armed Forces before remedy implementation started on 1 October 2023.
Once an IC member has received their Remediable Service Statement (showing their remedy options) and made their election choice, they will be issued a Remediable Pension Saving Statement (RPSS) by Veterans UK. This is irrespective of whether they choose to receive AFPS 15 or legacy scheme benefits for their service in the remedy period. Using the information provided in the RPSS, IC members will require to enter details into the online HMRC Adjustment Tool, to assess their tax position based on legacy scheme benefits.
Based on their legacy scheme PIAs, IC members may be due a tax refund or possibly incur a tax liability. A tax liability can only be incurred from April 2019 onwards – any liability for earlier years will be written off. This will not be revisited again. For those who elect to receive AFPS15 benefits there will be no additional tax liability.
28 January 2025 – content correct at time of writing
