med discharge

Discussion in 'Armed Forces Pension Scheme' started by chico5581, Apr 25, 2013.

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  1. hey guys,
    wondering if anyone can help me cos I cant seem to get an answer. I am due to leave the army through med discharge I have got my date and I have found out am on tier 1.iam on the 05 pension scheme.i offered to transfer to that scheme.i will have done 15 years 6 months by the time I leave at the end of july.was wondering if anyone could tell me roughly I would be getting.i got told I would get a lump sum and a preserved pension at 65.
    cheers
     
  2. Tier 1

    If you are medically discharged from the Armed Forces because you are unable to do your Service job, but your ability to get gainful employment is not deemed to be significantly impaired, you will be awarded a tax-free lump sum to help you adjust to your new circumstances. The payment will be calculated on the basis of 1/8th of your pensionable earnings multiplied by the length of your reckonable service, subject to a minimum of six months pensionable earnings and a maximum of two years pensionable earnings. In these circumstances, your pension benefits will be preserved until pension benefit age (currently age 65).
    If you have passed the EDP 18/40 Point, you will receive an EDP lump sum and monthly EDP income payments instead, until your preserved pension comes into payment (currently age 65). Examples of lump sum calculation An individual joins at age 20 but is medically discharged after two years service.
    Final pensionable earnings is £16,000. The ill health lump sum is calculated as: 1/8 x £16,000 x 2 = £4,000. As £4,000 is less than the minimum of six months pay, the lump sum is increased to £8,000 an individual joins at age 20 but is medically discharged after 10 years service. Final pensionable earnings is £32,000. The ill health lump sum is calculated as: 1/8 x £32,000 x 10 = £40,000. An individual joins at age 20 but is medically discharged after 17 years service. Final pensionable earnings is £40,000. The ill health lump sum is calculated as: 1/8 x £40,000 x 17 = £85,000. As this exceeds the maximum of two years pay, the lump sum award is reduced to £80,000.

    MMP/124
     
  3. He/she can ask as many questions as required and, if preferred, can arrange to come in and speak to David Marsh. Meanwhile I will send Chico a PM on the implications of medical discharge to see if it helps.
     
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