The Differences Between AFPS 75, AFPS 05 and AFPS 15
The Armed Forces Pension Scheme has changed significantly over the decades, and the scheme you are on depends largely on when you joined the military. Understanding the differences matters, because the rules around when you can access your pension, how much you receive and what happens when you leave the forces vary considerably between the three main schemes.
AFPS 75
AFPS 75 applies to those who joined the armed forces before 6 April 2005. Under this scheme, the preserved pension for both officers and other ranks became payable from age 60. However, those who served long enough to qualify for an immediate pension could receive it from the date they left service.
To qualify for an immediate pension under AFPS 75, officers needed to complete 16 years of service from age 21, and other ranks needed to complete 22 years of service from age 18. Those who did not meet these thresholds but served for at least two years would receive a preserved pension, payable later.
AFPS 75 is a final salary scheme, meaning the pension is calculated as a proportion of your final salary at the time you left, multiplied by the number of years you served.
AFPS 05
AFPS 05 was introduced for those who joined from 6 April 2005 and applied until April 2015. It is also a final salary scheme, but with different qualifying thresholds. Under AFPS 05, an immediate pension is only payable to those who serve to age 55. Those who leave after at least 18 years of service and having reached age 40, known as the 18/40 point, qualify instead for an Early Departure Payment, which provides a tax-free lump sum and a regular income until the preserved pension comes into payment.
Those who left before either of these points but had completed at least two years of service could claim a preserved pension from age 65.
AFPS 15
AFPS 15 came into effect on 1 April 2015 and is the scheme that applies to most current and more recently serving personnel. It is a career average scheme rather than a final salary scheme, meaning your pension builds up based on your earnings each year, rather than being based solely on your final salary.
The normal pension age under AFPS 15 is 60, so those who serve to that age receive their pension immediately. For those who leave earlier, the preserved pension becomes payable at state pension age, though it can be claimed from age 55 at a reduced rate. Those who leave after at least 20 years of service and having reached age 40 qualify for an Early Departure Payment, similar in principle to the AFPS 05 arrangement. As with previous schemes, you need at least two years of service to be entitled to a preserved pension.
Transitional Arrangements
When AFPS 15 was introduced, some personnel had transitional protections that allowed them to remain on their previous scheme for a period. Legal challenges and subsequent court rulings led to adjustments for some members, and if you served across the transition period you may want to request a pension forecast from Veterans UK to understand exactly what you are entitled to.
Which Scheme Am I On?
For most people, the scheme you are on is determined by the date you joined the armed forces, but it is not always quite that simple. Those who joined before 2015 may have moved onto AFPS 15 part way through their career as part of the wider transition, and the date this happened varied depending on age and circumstances at the time. If you are unsure which scheme applies to you, or whether you span more than one, the safest approach is to check directly with Veterans UK rather than relying on assumptions based on your joining date alone.
What Happens to Your Pension If You Leave Early?
Leaving before reaching the immediate pension point does not mean losing your pension entitlement altogether. Provided you have completed the minimum qualifying service, typically two years across all three schemes, you will be entitled to a preserved pension that becomes payable from a set age rather than from the date you leave. Under AFPS 75 and AFPS 05, this is normally age 60 or 65 depending on the scheme, while AFPS 15 preserved pensions become payable from the state pension age. It is worth keeping your contact details updated with Veterans UK so that you can be traced when your preserved pension becomes due.
If you are unsure which scheme applies to you, or want to understand exactly what you have built up, Veterans UK can provide a pension forecast that sets out what you have accrued and when you can access it. Contact details are available through GOV.UK. Heroes Hub also has a downloadable guide on understanding your military pension, available at heroeshub.uk.com.