Armed Forces Compensation

Hello All.

I was hoping someone may be able to shred some light I what I think is totally wrong:

I was seriously hurt a couple of years ago whilst on Operations, (now a member of BLESMA). I have stayed in the Army and I am now attached from my Battalion to a Unit in the West Midlands where I like to think I add value and support to those that need it.

Like most Soldiers who are injured on Operations I was entitled to a tax free pay out from the Armed Forces Compensation Scheme which I received- I am also entitled to a GIP-Guaranteed Income Payment when I leave the Army. If I left the Army in a year’s time it will be around 17 grand a year tax free for life. However the longer you stay in the more the GIP will go down until your 22 year point then it is worthless because you have your service pension.

I was under the impression that compensation has nothing to do with your pension as everyone in the Army who completes 22 years receives a pension whether you are injured or not. I don’t want to leave the Army but I feel that if I don’t I will miss out. Can anyone tell me why the GIP goes down with age until it’s worthless just because you receive your service pension?

Thank you for any answers.

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