Your pension is our business

‘ … Our Will and Pleasure is that the Schedule attached to this Our Warrant, together with any additions and amendments that We may hereafter decide shall

‘ … Our Will and Pleasure is that the Schedule attached to this Our Warrant, together with any additions and amendments that We may hereafter decide shall, except in cases covered by the warrant of Her late Majesty Queen Victoria of 27th October 1884, be established and obeyed as the sole authority on matters herein treated …’

Thus begins the Royal Warrant that brought into force the 1975 Armed Forces Pension Scheme (AFPS 75). Nothing so glamorous prefixes the new scheme (AFPS 05), introduced through the Armed Forces (Pension and Compensation) Act 2004 and that came into force on 6April 2005. Such is the march of progress.

So there are now two different pension schemes running (AFPS 75 and AFPS 05), and this will remain the case until the last member of the 75 scheme retires in (probably) over 30 years’ time. All people serving at the time were given the option of remaining on the old scheme or transferring to the new one, and the overall take-up rate for transfer was about 8 per cent. All people joining the Armed Forces from April 2005 have been enrolled in the 05 scheme.

The two schemes differ significantly and their detailed provisions demand careful study. In general, however, AFPS 75 favours short service but has a poor dependant’s package, whereas AFPS 05 favours long service, recognises all service and has a much better dependant’s package.

Like other complex legislation, Armed Forces pensions have had glitches over the years. Nevertheless, whichever scheme you are on, you will be paid your pension in due course. But do you truly understand everything you need to know about it, and are you really confident that nothing can go wrong?

Few people can answer this question with a confident ‘yes’. If you have any doubts about your full understanding of the implications of your pension situation, the Forces Pension Society can help.

It was formed 60 years ago to fight for the pension rights of Service men and women. There have been huge improvements in Service pensions in recent years, and few would have been achieved (and none of the so-called legacy issues addressed) without the campaigns it has run. In future it is inevitable that new problems will emerge to haunt retired Service people. Their resolution will require the expertise of the Society, because no other independent organisation has the necessary knowledge. It is a not-for-profit limited company, funded by subscription. As a membership organisation, its ability to fight the pensioner’s corner depends on a steady stream of new members from all three Services. Its primary objectives are:

• campaigning to secure fair conditions in the Armed Forces Pension Scheme for all ranks of all three Services, both serving and retired, and for their widows, widowers and dependants
• for these conditions to recognise the unique commitment that they make and have made to their country, and that are in line with modern good practice
• to campaign for the resolution of legacy issues
• case work through advising and assisting members on Service pension problems and related issues.

The Society works closely with other ex-Service organisations to benefit all past, present and future pensionable members of the Armed Forces. Independence from the MoD allows it to engage vigorously with Parliament, ministers, military and government officials to ensure that Service pensions are as good as they can be. Over the years significant successes have included:

• abolition of means testing for Service widows
• index linking of pensions
• increasing Service widows’ pensions to half rate
• pensions for Service widows of post-retirement marriages
• restoration of Service widows’ pensions on the ending of a second marriage
• resolution of improper taxation
• thousands of individual case work problems.

Case work (about 400 queries per month) provides an advice service to members and dependants on their individual Service pension problems. These vary widely and include potential dependants’ pension entitlement, pension sharing orders on divorce, and internal dispute resolution.

Society members also receive a biannual magazine, Pennant, which includes member services, articles and comment on a wide range of topics. The Society’s website also covers these areas.

No one can tell what problems may arise in the future with their Service pension, and no other organisation has the sole purpose of protecting the occupational pension interests of the Services. We need to continue campaigning both on your behalf and on behalf of your successors. But the Society needs to maintain a strong membership base.

To understand more about your pension, for help with problems, or to support campaigns, please get in touch. For just £23 per year, can you afford not to become a member?

Phone the Forces Pension Society on 0207 820 9988, e-mail memsec@forpen.co.uk, or visit the website at www.forpen.co.uk