Armed Forces Pension AFPS 15 UK 2026/27: Tiers, EDP, Resettlement

The Armed Forces Pension Scheme 2015 (AFPS 15) is the UK Armed Forces' defined-benefit pension for personnel who joined after 1 April 2015. It is non-contributory - unique among major UK public-sector pensions - and combined with Early Departure Payments (EDP) at the 20-year service point, it represents one of the most generous compensation structures in UK employment. This guide covers the 2026/27 position.

At a glance

• Type: Defined Benefit (CARE - Career Average Revalued Earnings since 2015).
• Accrual rate: 1/47 of pensionable pay per year (the most generous in UK public sector).
• Revaluation: CPI + 1.25% during active service.
• Employer contribution: ~50% of pensionable pay (the highest of any UK pension).
• Employee contribution: None - AFPS 15 is non-contributory.
• Normal Pension Age: linked to State Pension Age (currently 66, rising to 67).
• Early Departure Payment (EDP): lump sum + ongoing income at 20 years service.

How the CARE accrual works

Each year you accrue 1/47 of your pensionable pay as a pension entitlement. The accrued amount is revalued annually by CPI + 1.25% during active service.

Worked example: career-average pensionable pay of £45,000 across 22 years (the "22-year point" - a common Forces career milestone).

Annual accrual: £45,000 / 47 = £957/year of pension
Total over 22 years (with revaluation): approximately £24,000-£28,000/year

Plus EDP (see below) and the State Pension at age 67. Soldiers can typically retire at 22 years service with their pension AND substantial EDP support.

Early Departure Payment (EDP) - the 20-year inflection

A unique feature of AFPS 15: at 20+ years of service AND age 40+, you qualify for an Early Departure Payment consisting of:

1. EDP Income: monthly payment of approximately 50% of your eventual AFPS 15 pension, paid until your Normal Pension Age (66+).
2. EDP Lump Sum: tax-free payment equivalent to approximately 3 times your annual pension, paid on departure.

Worked example: someone leaving at 22 years with £25,000/year accrued AFPS 15 pension.

EDP Lump Sum (tax-free):  £25,000 x 3 = £75,000 (one-off)
EDP Income (monthly):     £25,000 / 2 / 12 = £1,041/month until age 66
At age 66: full AFPS 15 pension begins:  £25,000/year

EDP makes early Forces departure financially viable in a way that no civilian pension scheme matches. It compensates for the unique risks + service conditions of military life.

The McCloud remedy

The 2018 McCloud judgment applied to AFPS 15 alongside other public-sector schemes. Personnel who were active members of AFPS 75 or AFPS 05 on 31 March 2012 are affected. The remedy gives a choice at retirement (or earlier separation point) between:

• The legacy scheme (AFPS 75 or AFPS 05) for the period 1 April 2015 to 31 March 2022, OR
• AFPS 15 for the same period.

AFPS 75 was a final salary scheme with very specific accrual rates including unique features around immediate pension at the 22-year point. Each Forces individual's situation differs - Veterans UK is issuing Remedial Service Statements showing both options.

Resettlement grants

Beyond EDP, the Armed Forces provides resettlement support for transitioning members:

• Resettlement training grant (a specific cash allowance for retraining).
• Standard Learning Credits (SLC) - annual training budget while serving.
• Enhanced Learning Credits (ELC) - additional training entitlement after qualifying service.
• Career Transition Partnership - structured outplacement support.

These benefits are typically tax-free and represent substantial additional value beyond the headline pension.

Annual Allowance for senior officers

Lieutenant Colonel and above can face Annual Allowance issues. The mechanics mirror NHS senior clinicians:

• A pay rise increases your Pension Input Amount (PIA) by 16x the inflation-adjusted increase in accrued benefits.
• Promotion (e.g. Major to Lieutenant Colonel) triggers a substantial PIA spike.
• Combined with high CPI, the PIA can exceed the £60,000 standard Annual Allowance.

Veterans UK administers AFPS 15 and allows Scheme Pays for AA charges above £2,000.

Death-in-service benefits

AFPS 15 includes substantial death-in-service:

• Lump sum: 4 times pensionable salary (tax-free).
• Spouse/partner survivor pension: 62.5% of your accrued pension.
• Children's pensions: tiered support for dependent children.

These benefits are particularly valuable for personnel deployed on operations.

Service-attributable disability

AFPS 15 includes enhanced provisions for service-attributable disability:

• Accelerated pension if you leave service due to a service-related condition.
• Lump sum compensation in addition to AFPS 15 entitlement.
• War Pensions Scheme payments for pre-2005 service-attributable conditions (administered separately).

These overlap with the Armed Forces Compensation Scheme - talk to Veterans UK for clarification on which apply to your specific circumstances.

How AFPS 15 shows on your payslip

A correctly-structured Armed Forces payslip shows:

• Basic pay at your rank/year-of-service pay point.
• X-Factor allowance (typically 14.5% of basic pay) - recognising military service conditions.
• Specialist allowances (Flying Pay, Submarine Pay, SAS Pay, etc.) where applicable.
• No pension deduction - AFPS 15 is non-contributory.
• Income tax + NI as standard PAYE.

Your AFPS 15 pension accrual is tracked separately by Veterans UK and visible via your Service Personnel and Veterans Agency portal.

When to talk to a pension specialist

For routine AFPS 15 membership, no specialist advice is needed. A regulated pension adviser earns their fee when:

• You're a senior officer (Lt Col+) facing repeated AA charges.
• You need to make the McCloud remedy choice at or near separation.
• You're approaching the 20-year EDP point and need EDP planning.
• You're considering transferring out of AFPS 15 (extremely rare and almost always wrong).
• You're transitioning to civilian employment and need pension consolidation advice.

Veterans UK provides administrative information at gov.uk/veterans-uk. For regulated advice, an FCA-authorised pension adviser experienced with Forces pensions is essential.

Disclaimer

PayslipIQ provides automated educational guidance based on the figures you supply. It is not regulated pension or financial advice. AFPS 15 rules are technical and interact with AFPS 75 and AFPS 05 legacy schemes via McCloud - for substantial decisions especially around EDP planning, McCloud remedy, AA charges, or transfer out, consult a regulated FCA-authorised pension adviser experienced with Armed Forces pensions.