JTO...
EARLY DEPARTURE PAYMENTS (EDP) SCHEME
Introduction
Changes to tax law by the Inland Revenue do not allow pension benefits to be paid from a tax-approved pension scheme before the age of 55 (apart from those for ill health). The new Early Departure Payment (EDP) Scheme is not a pension, but it pays a tax-free lump sum of three times pension and a taxable income, so it is a compensation payment, similarly structured to the Immediate Pension (IP) in AFPS 75 but of a lower value. It is payable to personnel who leave Service from age 40 AND with at least 18 years of service, but before the normal retirement age of 55.
Who is will be affected by this change?
Those who choose to transfer to the new AFPS 05 and, new entrants or re-entrants to the Armed Forces from 6 Apr 05 will be eligible to receive an EDP (apart from certain specialist staff who are on bonus terms). Those already in receipt of an IP or who are currently serving and decide to remain in AFPS 75 will NOT be affected by these changes.
That was taken from the MOD website at:
http://www.mod.uk/issues/pensions/ea...e_payments.htm
I always thought that the last sentence was quite clear. But I can understand why you are suspicious.