A new armed forces pension scheme comes in from April 2015, bringing with it big changes to how pensions are calculated and when they are paid.
From April 2015 the Future Armed Forces Pension Scheme comes into effect, replacing the various current schemes.
The main changes are:
- It is no longer a final salary scheme, but is based instead on career average salary.
- The pension age rises from 55 to 60.
- The Early Departure Payment is still available at 40, but service leavers can opt to swap it for bigger pension payments later.
Almost 15,000 currently serving personnel will be exempt from the changes because they are too close to retirement age.
There are still details to work through, and it still has to get through parliament, but the experts say they are broadly happy with the deal.
It is just seven years since the last major changes to the armed forces pension scheme, but there is a promise of no more changes for the next 25 years.
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Attributable benefits (compensation)
Tri-Service pension codes 2002 - 2011
Pension terms glossary
SPVA pension forms