FAFPS 2015

[Al R]

Yes, no more doing a year or so for the Queen.

How old are you in 2017? If you were born on or before 1 April 1967, you can stay on 75 and you won't be affected. If you're too young, you may still get the slightly smaller amount of your fund (three times annual pension as cash) in 2017 (depending on how many years you have done) and then at 65, have the ability to commute on the final 2 years worth of fund - which will mean (in real terms) a particularly small amount if you choose to go down that route. You could still also qualify for the FAFPS EDP.

The new EDP will continue to consist of a monthly income plus a tax-free lump sum. The monthly income will be 34% of the value of the ‘pension pot’ based on 1/47ths, plus a tax-free EDP lump sum of 2.25 times the ‘pension pot’. Further work is being undertaken to investigate the potential for giving Service personnel greater flexibility in how they receive their EDP benefits, in light of the responses to the initial consultation. The results of this work will be announced when a final agreement on the scheme design is announced in September.