As we enter 2026 — the Society’s 80th Anniversary year – it’s also time to briefly reflect on 2025, another record-breaking period for the Society. Our team responded to significantly higher volumes of pension enquiries than ever before, many reflecting the increasing complexity of today’s Armed Forces Pension Schemes.
We also reached new highs in membership numbers, social media followers, and engagement rates. Much of this was driven by the delayed AFPS 15 Remedy Remediable Service Statement (RSS) delivery plan. The year also included a difficult run-up to the Autumn Budget, during which threats to tax-free lump sums — thankfully countered for now — created understandable concern across the Armed Forces community. These, alongside other factors, contributed to what I can only describe as a challenging operating environment throughout 2025.
I would like to thank you for your continued support, engagement, and patience as we navigated these issues, worked to keep you informed, and sought to represent your interests with the MoD and across wider Government. While there is room for improvement, we ended 2025 in good order and well positioned for the year ahead.
The challenges ahead in 2026
2026 presents several significant challenges, for which we are primed.
Challenge 1: Clarity on the AFPS 15 Remedy RSS delivery plan
Our top priority remains achieving clarity on the AFPS 15 Remedy RSS delivery plan and progressing towards a sustainable “steady state” of implementation. Given the collective experience of recent years, there is understandable scepticism about progress in this area. Following our intervention, the MoD has confirmed that its 31 March 2026 RSS deadline will be missed, and we now await a further update promised for January.
We will continue to press the MoD for this essential clarification and keep you informed through our Remedy Situation Reports and other communications. We will also continue to support members with their individual decision-making as Election RSSs are received.
Challenge 2: Publicising the Early Leavers pension rectification exercise
A second major issue emerged with the publication of the AFPS Annual Accounts for FY 2024/25* on 17 December 2025. In summary, 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.
The MoD has acknowledged that this requirement has not been met since the legislation came into force. It estimates that around 60,000 former service personnel may be affected, at a cost of approximately £40 million. The Department is now revising its processes and has launched a rectification exercise to identify and engage those who may be entitled.
This will inevitably take time. We are examining the details and will share official communications to ensure as many eligible early leavers as possible are aware of their entitlement and understand the actions they need to take.
Challenge 3: Preventing a return of pre-Budget pension tax speculation
While we welcomed the fact that the 2025 Budget did not reduce the level of the tax-free Lump Sum Allowance, we remain concerned that — absent a clear statement from Government — the risk of renewed pre-Budget speculation persists.
Another cycle of rumours would further undermine trust and confidence among the serving and veteran community, something Defence — and wider society — can ill afford. We will therefore continue to press Ministers for a clear assurance that no such changes are planned for the foreseeable future.
Challenge 4: Reducing the unacceptably high number of unclaimed Armed Forces pensions
We have campaigned on this issue for several years and, despite progress, the fact remains that around 2,000 deferred Armed Forces pensions go unclaimed each year, with potentially significant sums involved.
Recent efforts have resulted in a modest but welcome reduction, from over 17,000 unclaimed pensions in 2023 to around 15,000 today. Our work to raise awareness and unite entitled veterans with their deferred pensions — payable from age 60, 65, or State Pension Age depending on scheme and circumstances — is supported by the Forces Pension Society Charitable Fund. Please help us spread the word and make 2026 the year we achieve meaningful progress in this area.
Challenge 5: Preparing for the outcome of the Reserve Service Employment Tribunal (the Milroy case)
The Employment Appeal Tribunal hearing in the Milroy case concluded on 19 December 2025. The original Employment Tribunal (Scotland) judgment in August 2024 found that the complainant, Major Milroy, had been treated less favourably as a part-time worker and denied access to AFPS 75 and successor pension schemes.
Our understanding is that the appeal ruling will be issued in February (date to be confirmed). Possible outcomes are varied and potentially significant. The guidance we published in October 2024 for those who believe they may be affected remains extant, and we will provide further updates as soon as we are able to do so.
Challenge 6: Fair treatment for members facing pension overpayment recovery
An increasing number of AFPS members are receiving correspondence from Equiniti Paymaster seeking recovery of apparent overpayments of their Armed Forces pension. We are aware of recurring issues relating to Pension Sharing Orders, Early Departure Payments, Guaranteed Minimum Pension, and calculation errors.
We have written formally to the MoD seeking clarification across a range of related policy issues and await their response before issuing further guidance. In the meantime, our September 2025 update should be read and acted upon by anyone affected. While the Government is obliged to seek recovery of overpayments, members are entitled to a full explanation and the opportunity to agree an appropriate repayment plan.
And finally: 2026 marks the Society’s 80th Anniversary
With so much to focus on in the year ahead, we must not overlook the opportunity to celebrate eight decades of service to the Armed Forces community.
We are already working on a special 80th Anniversary edition of Pennant, to be published in May. Our 80th Anniversary event and AGM, to be held on Wednesday 3 June at the Tower of London, will reflect the founding values of those who established the Society. It promises to be a memorable occasion, bringing together members and key stakeholders. Further details on how to apply will be published in February’s Members’ Newsletter and other communications.
Best wishes for 2026.
Neil Marshall
CEO Forces Pension Society
*Armed Forces Pensions Scheme Annual Accounts for FY 2024/25
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