Are you or someone you know a so‑called ‘Early Leaver’? You may be entitled to pension benefits or a potential cash refund.
When the AFPS Annual Accounts for FY 2024/25* were published on 17 Dec 25 a major issue emerged, affecting so called ‘Early Leavers’.
The issue is this: since April 2006, service personnel leaving with at least three months’, but less than two years’ qualifying service have been entitled to either a refund of any employee pension contributions (eg: AVCs / Added Pension), if made, or a transfer value paid into another registered pension scheme, but this did not happen.
This requirement has not been met since the legislation came into force in 2006 although the MoD has corrected this this for those currently serving.
The MoD estimates that around 60,000 former service personnel may be affected, at a cost of approximately £40 million. The MoD has launched a rectification exercise to identify and engage those who may be entitled and published this short update in December: Early Leavers – Pension Rights Notice
What happens next? It is now down to the MoD to develop and publish its plan to provide those early leavers affected the choice of a cash transfer sum to another pension scheme or a refund of their employee contributions. The processes and systems required to confirm eligibility and deliver this redress are now being urgently developed. Once plans are finalised, a further update will be provided by the Department.
Once we receive that update we will provide further guidance to those who may be affected. We’re monitoring this closely and will keep you informed.
