Have you thought about what your family entitlements would be if the worst happened to you?
Mary Petley of the Forces Pension Society outlines family entitlements scheme by scheme, and any criteria that apply.
Looking first at adult benefits.
AFPS 75 normally limits adult pensions to the spouse/civil partner of the member. If the member dies with their pension in payment the family continues to receive the member’s full pension for the first 91 days (if there were no eligible children) or 182 days (if there were). This is called the Short-Term Family Pension (STFP), after which the spouse/civil partner pension reduces to 50% of the member’s entitlement payable for life.
For a preserved pension, the spouse/civil partner entitlement is 50% of the member’s pension entitlement (so, no STFP entitlement) payable for life. They would also receive a lump sum of three times the member’s pension. If there is no spouse/civil partner, it is paid to the children or, if none, to the deceased’s estate.
AFPS 05 and AFPS 15 pay adult pensions, normally worth 62.5% of the member’s entitlement, to the spouse, civil partner or eligible partner.
If the member dies within five years of the pension commencing, the balance of five years’ worth of pension (including any lump sum paid) will be paid to the spouse, civil partner, eligible partner or, if none, to the deceased’s estate.
If the member dies with a preserved/deferred pension, a lump sum of three times the pension will be paid to their nominee or, if there is no nomination, to the spouse, civil partner or eligible partner or, if none, to the deceased’s estate. Turning now to children’s pensions.
AFPS 75 rules require the child to be:
• under the age of 17; or
• under the age of 23 and in full time education or vocational training.
The child (this includes a natural, adopted or stepchild) must be the child of a marriage which took place before the member left the Services and they must be born within nine months of the member’s death. A child born outside marriage but during the member’s Service would also have an entitlement.
AFPS 05 and AFPS 15 rules require the child to be:
• under the age of 18; or
• under the age of 23 and in full time education or vocational training.
There is no marriage criterion – the child simply has to be a natural child or a child who is financially dependant upon the member. An unborn child must be born within 12 months of the member’s death.
For all schemes, a child’s pension is only payable beyond age 23 if the child is unable to undertake gainful employment due to mental or physical disability suffered before age 23.
If there is an adult pension in payment, 50% of the member’s AFPS 75 entitlement is available for the eligible children. For AFPS 05/AFPS 15, 37.5% remains available for the eligible children. In all schemes, no child can receive more than 25% of the member’s entitlement.
In all schemes, where there is no adult pension in payment, and the children are not living with a parent/step-parent, the member’s whole pension is available for the children, with no child receiving more than 33.33% of the member’s entitlement.
Remember, if you have membership of more than one scheme, your family could have more than one entitlement.
If you are a member of the Forces Pension Society and have pension-related questions, contact us at: pensionenquiries@forpen.co.uk
If you are not a member but would like to find out more about us, visit: www.forcespensionsociety.org
