War Pension-Service Pension at 55

Discussion in 'Armed Forces Pension Scheme' started by nigeats, Jun 4, 2007.

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  1. A query on War Pension being paid and then claiming a Service Pension. When someone leaves the Military after 22 yrs and more, they are in receipt of a pension obviously based on rank and length of service. If that person wishes to they can apply for a War Pension (or whatever the new fandangled name is now) and if successful they can also be in receipt of that pension as well. So lets suppose that someone has retired at 22 yrs service, is then in receipt of pension (and Gratuity), albeit taxed and at one rate of payment until 55 yrs of age when index link kicks in. If the person that is successful in claiming a War Pension gets above 20% for example then that pension is not taxed on that particular pension payment. If that is the case where someone can claim a war pension on top of their military pension then all well and good. But, can someone who has been medically discharged and in receipt of war pension, then at the age of 55 start claiming the other pension? It seems fair enough to me if this did apply but a little odd that the Govt can pay two pensions from the pot to one person one way but not the other way unless I am not aware of this. Anyone offer some advice and experience with this scenario?
  2. Its a long time since I had anything 'official' to do with service pensions (apart from receiving one now, that is!), and someone more up to date may correct me. My understanding is that the deferred service pension that you can claim (at age 60, not 55) is the pension that you have earned, and is yours by right. These are similar terms to most final salary schemes where someone leaves before completing enough time to get an immediate pension. The War pension is quite different, and is partly compensation for the damage done to you as a result of service, and partly to give an immediate income. Until quite recently the two were paid from different sources (War pensions came from the DWP, occupational pension came from the MOD), but now both come from the MOD. I'm referring here to the 1975 pension scheme, not the new one, but I don't think the treatment of war pensions and occupational pensions differ much.

  3. vauxhall

    vauxhall Sponsor

    In AFPS 75 if someone is medically discharged they leave with a pension payable immediately (irrespective of whether WPS pays a War Pension). There is no preserved pension due later (the age is 60 for pensions earned up to 6 April 2006 and 65 for pensions for service after that date - not 55). The only time I can think of where there might be something preserved is if, having been medically discharged, the individual is later fit enough to rejoin - but I doubt that happens often.
  4. Just to add to the previous post, if you are med discharged under AFPS 75, and the reason for the discharge is that the injury was due to service, you get a SAP (Service Attributable Pension), if you also get a War Pension, the SAP becomes Tax Free. The SAP isn't commutable either, and there is no preserved pension due later