AFPS 15 Pension & EDP Summary
The Armed Forces Pension Scheme 2015 (AFPS 15) is one of the most generous public sector pension schemes in the UK. It is a 100% non-contributory defined benefit scheme provided to regular serving personnel in the British Army, Royal Navy, Royal Marines, and Royal Air Force (RAF).
Under AFPS 15, members build up pension benefits based on a Career Average Revalued Earnings (CARE) structure with a high accrual rate of 1/47th (2.1276%) of pensionable base pay earned each year. In addition, serving personnel who reach the 20/40 Early Departure Payment (EDP) milestone receive immediate monthly income and a tax-free lump sum upon leaving the military.
⚙️ Rules & Thresholds
- CARE Pension Accrual Formula:
Annual Pension Accrued = Pensionable Base Pay × (1 / 47).- Revalued annually in line with Consumer Prices Index (CPI) inflation plus 0%.
- 0% Member Contribution Rate: Serving military personnel pay £0.00 in pension contributions from their monthly salary; the scheme is 100% funded by the Ministry of Defence.
- Early Departure Payment Scheme (EDP 15):
- Qualification Milestone: Must complete at least 20 years of regular service AND be age 40 or older upon discharge.
- EDP Annual Income: Pays 34% of your deferred annual pension (plus 0.85% for each extra year served over 20) as regular income from discharge until State Pension Age.
- EDP Tax-Free Lump Sum: Pays an immediate tax-free lump sum equal to 2.25 times your deferred annual pension value.
- Normal Pension Age (NPA): Age 60 for serving personnel; State Pension Age (67/68) for deferred members who leave prior to age 60.
📊 Practical Examples
- Average Pensionable Pay: £38,500.00
- Years of Regular Service: 18 Years
- Exit Age: 42 Years
- AFPS 15 Accrual (1/47th): £38,500 × (1 / 47) × 18 = **£14,744.68 / year**
Deferred Annual Pension Value: **£14,744.68 / year** (payable at State Pension Age).
EDP Qualification Check: 18 years service is below the 20-year EDP threshold, so no EDP income is payable until State Pension Age.
Member Contribution Cost: **£0.00 / month** (100% MoD funded).
📑 Common Pitfalls
- Leaving at 19 Years Service (Missing EDP by 1 Year): Leaving the military after 19 years and 11 months forfeits the EDP tax-free lump sum and monthly income stream worth over £100,000 across early retirement years.
- Confusing AFPS 15 with AFPS 75 or AFPS 05: AFPS 75 calculated pensions based on rank and final rank pay; AFPS 15 uses career average earnings across your entire service duration.
- Overlooking McCloud Remedy Transfer Adjustments: Service between 2015 and 2022 is subject to the McCloud remedy, allowing eligible personnel to choose between legacy scheme (AFPS 75/05) or AFPS 15 benefits for the remedy period.
❓ Frequently Asked Questions (FAQ)
No. The UK Armed Forces Pension Scheme (AFPS 15) is completely non-contributory. Serving personnel in the Army, Navy, and RAF pay 0% of their salary toward their pension; the Ministry of Defence covers 100% of pension costs.
The 20/40 EDP rule states that personnel leaving the military after completing at least 20 years of regular service and reaching age 40 or older automatically qualify for immediate monthly EDP income and a tax-free lump sum upon discharge.
The AFPS 15 scheme uses an accrual rate of 1/47th (approx. 2.13%) of your pensionable base pay for each year of service, which is revalued annually in line with CPI inflation.
Yes. When claiming your main deferred AFPS 15 pension at State Pension Age, you can commute up to 25% of your total pension pot into a tax-free lump sum under standard HMRC pension rules.