Contents
Does My Spouse/Partner Get My Military Pension When I Die?
Military Pension Scheme: AFPS 75
Armed Forces Pension Schemes: AFPS & AFPS 15
What Happens To Your Military Pension When You Die?: Death Benefit Nominees
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Does My Spouse/Partner Get My Military Pension When I Die?
Armed Forces personnel have a difficult and dangerous job and it’s important to know your family is provided for should the worst happen. Understanding how your pension will be allocated to your spouse or partner is essential, along with understanding the range of specialist military protection products available to you.
The following information is provided by our partner, The Forces Pension Society. It explains what your spouse or partner can expect, as well as any important steps you need to put in place now.
Currently, there are three Armed Forces Pension schemes (AFPS)
Armed Forces Military Pension Scheme 1975 (AFPS 75) – this closed to new entrants on 5 April 2005
Armed Forces Military Pension Scheme 2005 (AFPS 05) – all new entrants on or after 6 April 2005 joined this scheme (and those who took the Offer to Transfer from AFPS 75)
Armed Forces Military Pension Scheme 2015 (AFPS 15) – all new entrants on or after 1 April 2015 joined this scheme.
Serving personnel who were born on or after 1 April 1967 were transferred to AFPS 15 on 1 April 2015. With effect from 1 April 2022, all serving personnel are now members of AFPS 15 and all other schemes have closed.
Personnel who were transferred into AFPS 15 retained accrued rights from their legacy (‘old’) pension scheme, which means that a pension earned in their legacy scheme is protected and cannot be taken away.
Military Pension Scheme: AFPS 75
AFPS 75 adult pensions are normally limited to the spouse or civil partner of the member. If you are not married or in a civil partnership, it is unlikely a partner will receive anything from an AFPS 75 pension. If a member dies in service or they die with their armed forces pension in payment, the family pension is paid in two stages.
Firstly, a spouse or civil partner will receive the Short-Term Family Pension (STFP). This means they receive the member’s representative rate of pay for their rank (if they were still in service) or their full pension (if the pension was in payment) in the immediate aftermath of the member’s death for 91 days, if there were no eligible children, or 182 days, if there were.
Following the STFP, the spouse or civil partner will receive 50 percent of the member’s entitlement and this is payable for life. If a member dies with a preserved AFPS 75 pension (that is a pension not yet in payment), the spouse or civil partner’s entitlement is 50 percent of the member’s pension entitlement payable for life. There is no STFP entitlement in this case. Instead, the member’s preserved benefits would include a lump sum of three times the pension and it is automatically paid to the spouse or civil partner. If there is no spouse or civil partner, the lump sum is paid to the children. If there are no children, it is paid into the deceased’s estate.
Armed Forces Pension Schemes: AFPS & AFPS 15
AFPS 05 and AFPS 15 adult military pensions are paid to a member’s spouse, civil partner or eligible partner. The latter is defined as an unmarried partner of either sex, who lived with the member and can demonstrate financial dependence or interdependence. Evidence might include:
- A joint bank account
- A joint rent book
- Evidence of bill sharing
- A Will which names the unmarried partner as the beneficiary
Both AFPS 05 and AFPS 15 adult pensions are normally 62.5 percent of the member’s pension entitlement and are payable for life. In addition to receiving the pension, a lump sum may also be payable in circumstances such as if the member dies in service, dies before claiming their pension or before having received five years’ worth of pension (which includes any lump sum the member took on discharge). This could be paid out as follows:
- If the member dies with a preserved AFPS 05 or a deferred (means the same as preserved) AFPS 15 pension, part of the entitlement is a lump sum of three times the pension. The lump sum will normally be paid to the person nominated by the member. If there is no nominee, it is paid to the member’s spouse, civil partner or eligible partner. If there is none, it is paid to the estate.
- For those who die in service, the death-in-service lump sum due would be paid under AFPS 15 rules (only those who have opted out of AFPS 15 would have no entitlement). The amount is four times the pensionable pay. If there is no nominee, it is paid to the member’s spouse, civil partner or eligible partner. If there is none, it is paid to the estate.
- If the member dies within five years of their AFPS 05 or AFPS 15 pension being in payment, Veterans UK will work out how much five year’s pension is worth, subtract the amount of pension and any lump sum which have been paid, and pay any balance to the spouse, civil partner, eligible partner or, if none, to the deceased’s estate.
If the member has benefits in more than one military pension scheme, there could be more than one entitlement. However, it is important to understand the entitlements as they relate to each scheme. As an example, if you are a spouse or civil partner of a former AFPS 75 member, it is possible you could have entitlements in both AFPS 75 and AFPS 15. Unfortunately, an eligible unmarried partner of a former AFPS 75 member would only have benefits under AFPS 15 rules.
What Happens To Your Military Pension When You Die?: Death Benefit Nominees
If a tax-free lump sum is payable in the event of your death and you are a member of Armed Forces Pension Scheme (AFPS) 05 or AFPS 15, you can decide who should receive it. You cannot nominate someone to receive your pension.
Nomination is particularly useful in the case of unmarried partners, where Veterans UK will be looking for evidence of financial dependence or interdependence to establish the partner’s entitlement to a pension. The existence of a nomination could help with this eligibility decision.
The nomination form, AFPS Form 2, takes minutes to complete and is available on the UK government website (https://www.gov.uk/guidance/veterans-uk-armed-forces-pensions-forms).
It is essential to keep nominations under review as personal circumstances may change and an old nomination can be replaced with a new one at any time. If it isn’t updated, the wrong person may get what could be a sizeable lump sum as Veterans UK will comply with the wishes expressed on the nomination form unless:
- The nominee dies before the member
- The nominee is the member’s ex-spouse or ex-civil partner (unless the nomination was made after the relationship was legally dissolved)
- The nominee enters a marriage or civil partnership on or after 1 December 2018 (thus, in the absence of a nomination post-dating the marriage/civil partnership, the spouse/civil partner receives the lump sum)
- The nominee is convicted of the murder or manslaughter of the member
Talk To Trinity
As military insurance specialists with over 23 years of experience, Trinity can advise you on any additional cover that will help to protect your family should you sustain life-changing injuries or a fatal accident. Both our personal accident insurance and life insurance policies will keep your loved ones financially secure and supported.
The Forces Pension Society is an independent, not-for-profit, membership organisation, that acts as a pension watchdog for the entire military community. The Society empowers its members to make better, well-informed choices about their Armed Forces Pension. To learn more about the Society visit www.forcespensionsociety.org