The key points:
KEY POINTS
• The FAFPS will be introduced from Apr 15.
• The MOD and HM Treasury have reached agreement over how rights accrued under AFPS 75 and AFPS 05 prior to enrolment into the FAFPS are to be treated.
• Individuals who are enrolled into the FAFPS will have the value of the AFPS 75 or AFPS 05 pension benefits they have earned up to the introduction of the new scheme protected until they leave the Service. This includes the Immediate Pension, the Early Departure Payment and lump sum.
• These accrued rights will remain payable at the time they were expected to be paid under the existing scheme rules and will be linked to the final pensionable salary at the point the individual leaves the Service, not the salary at the time of transition to FAFPS.
• The Government has proposed additional transitional protection for those individuals within 10 years of their Normal Pension Age (NPA) (age 55 for AFPS 75/05) on 1 Apr 12. They will remain on their current pension schemes and their benefits will be unaffected by the introduction of the FAFPS. IBN 19/11 refers.
• Regular Service personnel aged under 45 on 1 Apr 12 will be automatically enrolled into FAFPS when it starts and any further pension rights they earn from that date will be under the new scheme. Enrolment will be mandatory; there will be no ‘Offer to Transfer’.
• Guidance on Accrued Rights for the other Armed Forces Pension Schemes will be issued in due course (Reserve Forces, Non Regular Permanent Staff, Full Time Reserve Service, Gibraltar Regt and Gurkha).